Kaynes Technology IPO subscribed by 34.16 times on last day

• The qualified institutional investors’ portion of the IPO was subscribed 98.47 times.
• The IPO consists of a fresh issue of shares worth ₹530 crore and an offer for sale by promoters and shareholders worth ₹327 crore.
• The price band of the IPO is ₹559-587 a share.
• The company’s grey market premium rose to ₹130 per share from ₹75 earlier.
  

The initial public offering (IPO) of Mysore-based Kaynes Technology has been subscribed 34.16 times on the last of the subscription process on Monday. The IPO opened on November 10 and closed on November 14.

The qualified institutional investors portion of the IPO was subscribed 98.47 times. The retail portion however was subscribed by four times over.

The IPO consists of a fresh issue of shares worth ₹530 crore and an offer for sale by promoters and shareholders worth ₹327 crore.

Kaynes Technology is an internet-of-things (IoT) solutions-enabled integrated electronics manufacturing company.

The grey market premium (GMP) of the company’s shares rose to ₹130 per share from ₹75 earlier. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

The company intends to use the proceeds of the fresh issue to repay some of its borrowings, funding capital expenditure requirements to expand manufacturing capacity, and towards working capital.

Category of investors	Subscription status
Qualified institutional buyers	98.47 times
Non institutional investors	21.21 times
Retail	4.09 times
Overall	34.16 times

The company’s business ranges from offering built-to-specification products, manufacturing printed circuit board assemblies (PCBA), to making smart meters, smart street lights and more. Kaynes Technology also offers product engineering and IoT solutions to industries as well as common users.

Kaynes Technology said that it has 313 customers across 20 countries. These customers are from multiple industries, including automotive, aerospace and defence, railways, medical, industrial and IT.

Kaynes Technology notes that in Q1 FY23, its top ten customers contributed to nearly 63% of the total revenue. The company’s dependence on these top ten customers was lower in FY22, when they contributed only 51% to its topline.


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