Kaynes Technology, an integrated electronics manufacturing firm, raised Rs 256.90 crore ($31 million) from anchor investors on Wednesday, ahead of its initial public offering (IPO).
Kaynes allocated approximately 4.4 million equity shares at Rs 587 each to 28 foreign and domestic investors in the anchor round.
Kaynes, which has already filed its DRHP (draft red herring prospectus) for an initial public offering with market regulator Sebi earlier this year, hopes to raise Rs 858 crore through the subscription. For its offer, the company set a price range of Rs 559-587 per share.
The issue goes on sale today and closes on November 14th.
The IPO consists of a fresh issue of shares worth Rs 530 crore and an offer for sale from existing investors and promoters worth approximately Rs 328 crore.
Kaynes intends to use the proceeds of the new issue to repay debt, fund capex for its manufacturing facilities in Mysuru and Manesar, meet working capital requirements, and invest in its subsidiary Kaynes Electronics Manufacturing Pvt. Ltd, which is establishing a new facility in Chamarajanagar, Karnataka.
According to the company, out of the total 4.4 equity shares allocated to anchor investors, 1.8 million shares were allocated to nine mutual funds through 14 schemes totaling Rs 103.66 crore, accounting for 40.35% of the total anchor book size.
Nomura, Goldman Sachs, Eastspring Investments, Public Sector Pension Investment Board, Ashoka India Opportunities Fund (White Oak), Government Pension Fund Global, Malabar Investments, Carmignac, Theleme, MK Cohesion, and India Acorn ICAV are among the foreign investors in the round.
Volrado Venture Fund (ENAM), White Oak Mutual Fund, Abakkus, ICICI Prudential MF, Axis Mutual Fund, Nippon Life India, Aditya Birla Sun Life, Mirae Asset, Franklin India, and Tata Mutual Fund were among the domestic institutions that took part.
Kaynes Technology, founded in 2008, provides design-led electronics manufacturing from eight manufacturing facilities across India, including Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand.
In the fiscal (FY) year ending March 2022, the company reported a profit of Rs 41.68 crore, up from Rs 9.73 crore the previous year. In FY22, it reported revenue of Rs 706.24 crore, a 68 per cent increase over the previous fiscal.
It has over 229 customers in 21 countries and various industry verticals such as automotive, aerospace and defence, industrial, railways, medical, and information technology.
Dixon Technologies India Limited, Syrma SGS Technology, and Amber Enterprises are competitors of Kaynes.
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