End-to-end and IoT solutions-enabled integrated electronics manufacturing player, Kaynes Technology will be making its market debut on Tuesday after a successful initial public offering (IPO). On BSE, Kaynes Technology will be listed for trading and dealings under the ‘B’ group of securities. NSE as well as notified the listing of the company. The ₹858 crore IPO had received an oversubscription of 34.16 times with a strong appetite across investor categories.
In its notice, BSE said, “trading members of the exchange are hereby informed that effective from Tuesday, November 22, 2022, the equity shares of Kaynes Technology India shall be listed and admitted to dealings on the Exchange in the list of ‘B ‘ Group of Securities.”
Meanwhile, NSE notified Kaynes that “the equity shares of the following company shall be listed and admitted to dealings on the Exchange w.e.f. November 22, 2022. Trading shall be in the Normal Market segment – Compulsory Demat (Rolling Settlement) for all investors.”
Kaynes IPO was launched on November 10 and ended on November 14. The IPO received an oversubscription of 34.16 times. In terms of investors, the portion reserved for qualified institutional buyers (QIBs) subscribed by 98.47 times, while the reserved portion for non-institutional investors (NII) subscribed by 23.07 times, and the retail individuals’ portion subscribed by 4.10 times. The allotment of the equity shares in the IPO was done on November 18.
The price band for the IPO was fixed at ₹ ₹559 apiece and ₹587 apiece respectively having a face value of ₹10 each.
Talking about the listing of Kaynes, Abhay Doshi, Founder at UnlistedArena.com said, “as the D-Street is ramped up with a number of IPOs and listings, the investors have remained very selective in IPOs. Kaynes Technology also received a very decent response. Despite being richly priced, the issue captivated investors’ interest as the electronics manufacturing industry is in focus and the order book is also strong. Recent positive listings should cheer up the sentiment. The issue may list at a hefty premium of 35–40%.”
Further, Girish Sodani, Head of Equity Market at Swastika Investmart believes that Kaynes Technology looks like another promising company for investors that got over 36 times subscribed and its listing date is on 22 November.
Sodani added that “Kaynes is a Mysore-based company in electronics manufacturing and integrated solutions for the industrial, automotive, aerospace and defense, outer-space, medical, nuclear, railways, Internet of Things (IoT), IT & other sectors. The company has capabilities across the entire spectrum of ESDM services. Kaynes has over 30 years of experience in providing Conceptual Design, Process Engineering, Integrated Manufacturing and Life Cycle Support. These services are having critical processes and has meticulous integrations. Hence, we believe it may have continuous growth in business and sustainability.”
Also, Sodani added that the upper price band for subscription was ₹587, and considering the overwhelming participation from investors, Swastika Research expects the company to list around ₹820 per share means tentatively 35-40% higher. Its GMP as of 21st November was hovering above ₹230. Investors shall book part listing gains on day 1 and part within a week, considering the price movement. It can be further purchased on dips later on for long-term investment.
While Ravi Singhal, CEO of GCL Securities stated that the company’s business model is very nice. He expects the listing to be in the range of ₹765 and ₹835. For the short term and long term, he suggested that investors can keep Kaynes stock for a target price of ₹1,000.
Kaynes has over three decades of experience across the entire spectrum of electronics system design and manufacturing (“ESDM”) services. It would be among the first companies in India to offer design-led electronics manufacturing to original equipment manufacturers (“OEMs”) using our mature embedded design capabilities.