Kaynes Technology IPO Listing Price: Kaynes Technology made a bumper debut on the domestic indices today, listing at Rs 775 on the BSE and Rs 778 on the NSE. The shares are currently trading at Rs 722, 22% above the issue price after touching an intraday high of Rs 786 and low of Rs 712 on the NSE. The public issue was subscribed 34x, with the Kaynes Technology IPO price band set between Rs 559 to Rs 587. The company’s shares are available on the grey market for a premium of Rs 220, a 37% rise from the upper price band.
The IPO sought to raise funds through issue of fresh sales totaling Rs 530 crore and OFS amounting to Rs 327.8 crore, making the total issue size Rs 827.8 crore. The company will use the funds to repay certain borrowings they’ve availed, expand on the manufacturing facilities’ infrastructure in Mysore and Manesar. The company will also invest in their subsidiary, Kaynes Electronics Manufacturing and set up their new facility in Karnataka. The total promoter holdings after the issue will be diluted to 67.39% from 79.78%.
“The company has reported strong financial growth, especially in recent years, and its margins have also improved significantly. It has a diversified business and customer profile and robust expansion in the order book. So, allottees who applied for the public issue for listing premium are advised to maintain a stop loss at ₹710 and wait for further upside whereas those who have medium to long-term perspective can hold the stock maintaining a stop loss at ₹680,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart post the listing.
“On the back of robust demand for its products & solutions, Kaynes reported a profitable business growth over FY19-22. The company has been profitable every year since its inception in 1988. Based on our quick conservative estimates, we are forecasting a top-line growth of 46.5% CAGR over FY22-24E to Rs 1,516.6 crore,” said a Choice Broking report prior to the company’s listing. They also advised investors to ‘subscribe with caution’.
“The issue has been subscribed 34x, which can give it a good listing gain. Syrma SGS, Dixon, and Amber Enterprise are its listed peers. Investors can hold it with mid-term to long-term perspective,” says Manoj Kumar Dalmia, Founder and Director, Proficient Equities.
Kaynes Technology is an leading end-to-end and IoT solutions-enabled integrated electronics manufacturer. The company provides design, engineering, manufacturing and support services for players in automotive, industrial, defense, nuclear and other segments.
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