Kaynes Technology IPO worth ₹530 crore to open on November 10

• Kaynes Technology IPO worth ₹530 crore opens on November 10 and will go on till November 14.
• The initial fresh issue size was ₹650 crore, but it has now been reduced to ₹530 crore.
• Based out of Mysore, Kaynes Technology is an IoT solutions-enabled integrated electronics manufacturing company.

Kaynes Technology’s initial public offering (IPO) worth ₹530 crore is all set to open on November 10 and close on November 14. It will go live a day early for anchor investors.

The initial fresh issue size was ₹650 crore, but it has now been reduced to ₹530 crore.

Kaynes Technology is a Mysore-based internet-of-things (IoT) solutions-enabled integrated electronics manufacturing company. Founded in 1989 and incorporated in 2008, Kaynes Technology’s issue includes a fresh issue of equity shares worth ₹530 crore, and an offer for sale of 5.6 million shares.

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.

It currently has eight manufacturing facilities spread across five states, including one design centre and two service centres. Overall, the company had a combined capacity of manufacturing 600 million components at the end of December 2021.

Kaynes Technology says that it intends to use the proceeds of the issue towards repaying some of its borrowings, funding capital expenditure requirements for expanding its manufacturing capacity, and funding its working capital requirements.

Global customer base across multiple industries

In its draft red herring prospectus (DRHP), Kaynes Technology said that it has 313 customers in 20 countries. These customers are from multiple industries, including automotive, aerospace and defence, railways, medical, industrial and IT.

Here are the company’s key financial metrics:

Source: RHP | *April-June 2022

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 reduced in FY22, when they contributed only 51% to its topline.

Any disruption in countries that it imports from, could have an adverse impact on its business, the company notes in its filing.

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