Shares of electronics manufacturing company Kaynes Technology India made a blockbuster debut on the domestic bourses on Tuesday, in line with the D-Street expectations. The share price of Mysore-based listed at ₹778 apiece on the National Stock Exchange (NSE), clocking a 32.5% premium against the issue price of ₹587. On the Bombay Stock Exchange (BSE), the stock kicked-off trading at ₹775, up ₹188 against the initial price offering (IPO) price band. In comparison, the BSE Sensex was trading 147 points higher at 61,292 levels.
Post listing, Kaynes Technology shares gained 34% to hit a high of ₹787 on the BSE, while it touched a high of ₹786 on the NSE. A total of 1.29 crore shares changed hands over the counter on the BSE and the NSE in the first hour of the trade so far, while the market capitalisation climbed to ₹4,103.70 crore.
Kaynes Technology, which offers a diverse array of electronics system design and manufacturing (ESDM) services, raised ₹858 crore from the IPO, which was subscribed 34.16 times. The quota for qualified institutional buyers (QIBs) was subscribed 98.47 times, while that of non-institutional investors was booked 21.21 times. The portion for retail individual investors (RIIs) received 4.09 times bids and that for employees was subscribed 11.89 times.
The IPO consisted of a fresh issue of equity shares worth ₹530 crore and an offer for sale (OFS) of up to 55.85 lakh equity shares by a promoter and an existing shareholder. The issue, with a price band at ₹559-587 per share, opened for public subscription between November 10 and November 14.
The company intends to use capital raised from the issue of fresh shares to repay debt, fund capital expenditure for its manufacturing facilities at Mysore and Manesar, and meet working capital requirements. Besides, it also plans to invest in its arm Kaynes Electronics Manufacturing for setting up a new facility at Chamarajanagar in Karnataka.
The end-to-end and IoT (Internet of Things) solutions-enabled electronics manufacturer raised ₹257 crore from anchor investors ahead of its IPO. The company allotted 43.76 lakh equity shares to anchor investors at ₹587 apiece, which saw participation from some leading investors such as Nomura, Goldman Sachs, WhiteOak Capital, ICICI Prudential Mutual Fund (MF), Axis MF, Aditya Birla Sun Life MF, HDFC MF, and Tata MF.
Earlier on Monday, speciality marine chemical manufacturer Archean Chemical Industries joined the domestic bourses, with the share price listing at ₹450, a premium of 10.56% against its issue price of ₹407 per share on the NSE. On the BSE, the stock listed at ₹449, up 10.3% against the upper price band of the initial public offer (IPO) issue price of ₹407 apiece, in an otherwise weak broader market. The company had raised ₹1,462 crore from the IPO, which was subscribed 32.23 times, led by qualified institutional buyers (QIBs). The portion reserved for QIBs was booked 48.91 times, while that of high net worth individuals (HNIs) was subscribed 14.90 times. The quota allotted for the retail portion received 9.96 times bids. The company had reserved 75% of the issue for QIBs, 15% for non-institutional investors, and the remaining 10% for retail investors.
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