KPIT Technologies shares end 5% higher at Rs 105 on first day of its trading on BSE

KPIT Technologies shares on the first day of its listing, ended 5% higher at Rs 105 on India’s leading exchange BSE, after starting the trade at Rs 100. On NSE, it ended at Rs 103.95 after listing at Rs 99 on Monday.

The company has also made an open offer at the price of Rs 66.5 per share for the acquisition of about 7.12 crore shares , according to the exchange filing.  The promoter currently is at 41.5 per share.

As a part of demerger, KPIT Engineering issued its equity shares to shareholders of KPIT Technologies in the ratio of 1:1. While the appointed date for the demerger was January 1, the effective date of the scheme was January 15.

In an interaction with CNBC TV18, Kishor Patil, founder, managing director and CEO of KPIT Technologies said the demerged company will focus on mobility solutions including passenger cars, commercial vehicles and new mobility.

“Right now there are some warnings coming from passenger car segment because most of these companies have to invest into new technologies and this tech spend is what is available as a market to us and therefore we are upbeat on our growth momentum” Patil told CNBC TV18.

The company is optimistic about its revenue and expect it to grow at 20 percent per annum. Patil said that EBITDA margins for next year would be about 15-16 per cent and for the year after that would rise about 18 per cent. He also said the company doesn’t have any plan of revising the open offer price at present.

On the question of increase in promoter holding, Patil said in the earlier KPIT, the promoter shareholding was less than 20 percent and currently it is in excess of 40 per cent. He said the company would  see how the open offer goes and depending on the resources and availability of funds it would take a call whether to increase the promoter’s stake or not.

KPIT Technologies, is the result of business restructuring between Birlasoft (India) Limited and KPIT Technologies Limited. As per the scheme, first both Birlasoft and KPIT Technologies were merged and then the resultant company was demerged into two companies- BirlaSoft and KPIT Technologies.