Kaynes Technology India
Mainboard₹858 Cr issue
+32.03%
Listing gain over issue price
Issue size
₹858 Cr
1 lot at cut-off
₹14,675
Lot size
25shares
Open
10 Nov 2022
Close
14 Nov 2022
Allotment
17 Nov 2022
Listing
22 Nov 2022
Listing performance
Issue price
₹587
Listed at
₹775
Listing-day close
₹690.10
Latest price
₹3,187.90
Close on 23 Oct 2026
Listing gain
+32.03%
Return since issue
+443.08%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 10 Nov 2022 – 14 Nov 2022
- Listing date
- 22 Nov 2022
- Face value
- ₹10 per share
- Issue price
- ₹587 per share
- Lot size
- 25 shares
- Total issue size
- ₹858 Cr
- Market cap at offer price
- ₹3,413 Cr
- Promoter holding
- 79.78% → 67.16% pre-issue → post-issue
- ISIN
- INE918Z01012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Dam Capital Advisors Ltd.
- Registered office
- 23-25, Belagola, Food Industrial Estate, Metagalli P.O., Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 43,76,421 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 25 shares per lot, in multiples, at ₹587
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 25 | ₹14,675 |
| Retail (max) | 13 | 325 | ₹1,90,775 |
| S-HNI (min) | 14 | 350 | ₹2,05,450 |
| S-HNI (max) | 68 | 1,700 | ₹9,97,900 |
| B-HNI (min) | 69 | 1,725 | ₹10,12,575 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
43,76,421
Anchor portion
₹257 Cr
at ₹587 per share
Valuation and performance
Valuation at offer price
₹587 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 9.70 | — |
| P/E (×) | 60.52 | — |
| Market cap | — | ₹3,413 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 20.54%
- ROCE
- 24.44%
- Debt / equity
- 0.84
- PAT margin
- 5.90%
- EBITDA margin
- 13.26%
- NAV per share
- ₹43.12
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kaynes Technology India
Kaynes Technology India Limited, incorporated on March 28, 2008, is an electronics system design and manufacturing (ESDM) company based in Mysuru, Karnataka. The company provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for major players across multiple industries. It operates eight manufacturing facilities and provides services including OEM turnkey solutions (box build and PCB assemblies), ODM, and product engineering with IoT solutions. The company has established relationships with 229 customers across 21 countries, including Fortune 500 companies and multinational corporations. It generated ₹7,062.49 million in revenue from operations in Fiscal 2022, with EBITDA margin of 13.26%. The company makes money through manufacturing services contracts with OEM customers, providing design and manufacturing capabilities for complex electronics products.
Company Analysis
from RHPKaynes Technology is an end-to-end, IoT-enabled integrated electronics manufacturing services company providing design, manufacturing, and lifecycle support across automotive, industrial, aerospace, defence, medical, railways, and IT sectors.
Kaynes Technology India Limited, incorporated on March 28, 2008, is an electronics system design and manufacturing (ESDM) company based in Mysuru, Karnataka. The company provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for major players across multiple industries. It operates eight manufacturing facilities and provides services including OEM turnkey solutions (box build and PCB assemblies), ODM, and product engineering with IoT solutions. The company has established relationships with 229 customers across 21 countries, including Fortune 500 companies and multinational corporations. It generated ₹7,062.49 million in revenue from operations in Fiscal 2022, with EBITDA margin of 13.26%. The company makes money through manufacturing services contracts with OEM customers, providing design and manufacturing capabilities for complex electronics products.
Electronics System Design and ManufacturingAutomotiveIndustrialAerospace and DefenceOuter-spaceNuclearMedical devicesRailwaysInternet of ThingsInformation Technology
Objects of the Issue
- Repayment/ prepayment, in full or part, of certain borrowings availed by our Company ₹1,300.00 million p.28
- Funding capital expenditure towards expansion of our existing manufacturing facility at Mysuru, Karnataka, and near our existing manufacturing facility at Manesar, Haryana ₹989.30 million p.28
- Investment in our wholly owned Subsidiary, Kaynes Electronics Manufacturing Private Limited, for setting up a new facility at Chamarajanagar, Karnataka ₹1,493.00 million p.28
- Funding working capital requirements of our Company ₹1,147.40 million p.28
- General corporate purposes [●] p.28
- Expansion of existing manufacturing facility at Mysuru, Karnataka – Unit - I, and near existing facility at Manesar, Haryana ₹2,482.30 million (comprising expansion capex and related working capital) p.81
- Investment in wholly-owned Subsidiary, Kaynes Electronics Manufacturing Private Limited, for setting up a new facility at Chamarajanagar, Karnataka ₹2,482.30 million (included in total above) p.81
- Repayment/prepayment, in full or part, of certain borrowings availed by the Company ₹1,300.00 million p.56
- Repayment/ prepayment, in full or part, of certain borrowings availed by our Company ₹1,300.00 million p.126
- Funding capital expenditure towards expansion of our existing manufacturing facility at Mysuru, Karnataka, and near our existing manufacturing facility at Manesar, Haryana ₹989.30 million p.131
- Investment in our wholly owned Subsidiary, Kaynes Electronics Manufacturing Private Limited, for setting up a new facility at Chamarajanagar, Karnataka ₹1,493.00 million p.136
- Funding working capital requirements of our Company ₹1,147.40 million p.141
- General corporate purposes p.143
- Funding capex for the new facility at Chamarajanagar, Karnataka, and expansion of existing facilities ₹2,482.30 million p.210
- Funding capex for expansion of manufacturing facilities p.213
- Funding backward integration measures for manufacturing in-house components ₹500.00 million (for PLI Scheme commitment) p.214
- General corporate purposes and working capital
Issue Structure
- Total Issue
- Up to [●] Equity Shares of face value of ₹10 each aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹ 5,300 million
- Offer for Sale
- Up to 5,584,664 Equity Shares aggregating up to ₹ [●] million (Ramesh Kunhikannan: up to 2,084,664 Equity Shares; Freny Firoze Irani: up to 3,500,000 Equity Shares)
- Price Band
- [●] per Equity Share (Floor Price: ₹ [●]; Cap Price: ₹ [●])
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
The company operates as an electronics contract manufacturer and design house, earning revenue through: (1) OEM Turnkey Solutions - Box Build services; (2) OEM Turnkey Solutions - Printed Circuit Board Assemblies (PCBA); (3) Original Design Manufacturer (ODM) services; and (4) Product Engineering and IoT Solutions. Revenue is generated on a project and purchase order basis from customers who outsource their electronics manufacturing and design requirements.
Business Segments
Provides end-to-end box build solutions for OEM customers
Provides PCBA manufacturing and assembly services
Provides original design manufacturing services
Provides product engineering and IoT solutions services
Manufacturing and assembly of printed circuit board assemblies for OEM customers
Manufacturing of complete box build solutions for OEM customers
Original Design Manufacturing services
Product engineering and Internet of Things solutions
Surface mount technology process including solder paste screen printing, component placement, reflow oven processing, wave soldering and selective soldering, and testing through in-circuit testers and flying probe testers
Assembly of sub-assemblies into final products including final assembly, testing processes, quality control processes, and packaging for shipment
Undertakes "Build To Print" or "Build to Specifications" of complex box builds, sub-systems and products across various industry verticals
Undertakes turnkey electronics manufacturing services of PCBAs, cable harness, magnetics and plastics ranging from prototyping to product realization including mass manufacturing
Offers ODM services in smart metering technology, smart street lighting, brush less DC (BLDC) technology, inverter technology, gallium nitride based charging technology and providing IoT solutions for making smart consumer appliances or devices IoT connected
Offers conceptual design and product engineering services in industrial and consumer segments including PCB design to embedded design, prototyping, connected product engineering, IoT data and analytics platform and vertical IoT solutions
Complete 'Build To Print' or 'Build to Specifications' of complex Box Builds, sub-systems and products in defence and aerospace, transportation, healthcare, IT and industrial verticals with customised manufacturing lines for box building, integration and testing
End-to-end turnkey solutions in manufacturing of PCB assemblies including prototyping, sourcing, supplier development for bare PCBs, testing and validation; focus on high mix, high technology, flexible volume production
Concept to commercialization services including design, prototyping, validation, certification and manufacturing of products; comprehensive support from identification of customer need through after-market services
Device engineering offering custom embedded system development; Digital engineering providing IoT and Cloud enablement solutions; Quality engineering providing quality assurance services; Prototype and bulk manufacturing services
Manufacturing and sale of advanced electronic modules and solutions
Provision of services related to electronic modules and solutions
Undertakes Build To Print or Build to Specifications of complex box builds, sub-systems and products across various industry verticals.
Undertakes turnkey electronics manufacturing services of PCBAs, cable harness, magnetics and plastics ranging from prototyping to product realization including mass manufacturing.
Offers ODM services in smart metering technology, smart street lighting, brush less DC technology, inverter technology, gallium nitride based charging technology and providing IoT solutions for making smart consumer appliances or devices IoT connected.
Offers conceptual design and product engineering services in industrial and consumer segments. Services include PCB cladding or electrical schematics to embedded design and submitting proof of concept to prototyping. Also offers connected product engineering and solutions including hardware, software accelerators and proprietary sensors along with cloud platform based service and solution offerings.
Design and manufacture of PCB assemblies and electronics systems for aerospace, defense, railways, and industrial applications
SWOT Analysis
Strengths
- • Diversified customer base across multiple sectors and geographies(p.42)
- • Strong EBITDA margin performance relative to listed peers(p.44)
- • High capacity utilization at key facilities(p.47)
- • Strong ROE and ROCE metrics(p.39)
- • Significant revenue growth trajectory(p.50)
- • Diversified customer base across multiple industry verticals(p.64)
- • Multiple global quality certifications and accreditations(p.75)
- • End-to-end integrated electronics manufacturing capabilities(p.66)
- • Revenue growth across fiscal periods(p.59)
- • End-to-end ESDM capabilities across entire spectrum with IoT solutions integration(p.204)
- • Diversified portfolio across multiple industry verticals reduces concentration risk(p.205)
- • Long-standing customer relationships with low concentration risk and balanced domestic-international mix(p.206)
- • Multiple global certifications making it most certified ESDM company in India(p.188)
- • Strong consistent financial performance with revenue CAGR of 38.49% and profitability since inception(p.209)
- • First ESDM company with NADCAP accreditation for aerospace products providing global market access(p.202)
- • Scalable manufacturing infrastructure with advanced capabilities and minimal capital requirements for expansion(p.208)
- • Experienced promoters and management with three decades of sector knowledge(p.210)
- • Qualified aerospace OEM contract with ₹350M annual value and global supplier eligibility(p.211)
- • Established automotive partnerships and Green Supplier certification since 2017(p.211)
- • Diversified customer base across verticals reducing single-segment dependency(p.228)
- • Order book growth from ₹3,521.69M (Mar 2020) to ₹22,662.64M (Jun 2022)(p.212)
- • Multiple industry-specific quality certifications including IATF 16949, ISO 13485, AS 9100, NADCAP(p.227)
- • End-to-end integrated business model covering concept to manufacturing and post-sales support(p.212)
- • 8 manufacturing facilities across 5 states with capacity for 34.04M additional PCB assemblies planned(p.213)
- • Strong management with long industry tenure(p.274)
- • Established leadership team with relevant expertise(p.274)
- • Robust corporate governance structure with independent directors(p.271)
- • Diversified geographic revenue base with growing international presence(p.394)
- • Growth in revenue from operations with operating profit in all years(p.409)
- • Strong net tangible assets exceeding regulatory thresholds(p.409)
Weaknesses
- • High customer concentration(p.37)
- • Negative operating cash flows in recent period(p.49)
- • Unprofitable subsidiaries creating losses(p.50)
- • Declining proportion of new customers(p.37)
- • High contingent liabilities(p.33)
- • No firm commitment agreements with customers(p.43)
- • Significant inventory write-offs indicating quality control issues(p.52)
- • High inventory levels with low turnover ratio(p.73)
- • Significant working capital requirements and borrowings(p.61)
- • High employee attrition rates(p.58)
- • Outstanding statutory dues and compliance lapses(p.58)
- • Declining gross margins(p.67)
- • Contingent liabilities representing significant percentage of net worth(p.65)
- • High debt-to-equity ratio indicating significant leverage despite improvement trend(p.209)
- • Declining EBITDA and profit margins on revenue base expansion indicating operational pressure(p.203)
- • High working capital requirements with 98 days net working capital days in Fiscal 2022(p.203)
- • Kemsys subsidiary showing persistent losses with negative EBITDA across multiple years(p.161)
- • Capacity underutilization with Parwanoo facility at only 36.92% utilization in FY2022(p.225)
- • High material cost at 75.71% of total expenses in FY2022, creating margin vulnerability(p.230)
- • Dependence on 871 suppliers with top 10 representing 36.74% of purchases in FY2022(p.230)
- • Promoter personal guarantees of ₹2,703.18M across multiple banks creating contingent liability(p.248)
- • Subsidiary Kemsys Technologies showing losses with PAT of (₹15.34M) and EBITDA of (₹12.01M) in Q1 FY2023(p.254)
- • Export revenue declining to 12.68% of total revenue in Q1 FY2023 from 19.99% in FY2022(p.231)
- • High manpower intensity with documented attrition challenges(p.275)
- • Compliance issues with employee benefit obligations(p.275)
- • Reliance on leased manufacturing facilities(p.277)
- • Significant pledged assets limiting financial flexibility(p.278)
- • Heavy reliance on debt financing with total borrowings of ₹1,863.76 million as of June 30, 2022(p.390)
- • High current borrowings with ₹1,067.14 million cash credit facility requiring renewal(p.390)
- • Contingent liabilities of ₹970.09 million including disputed tax demands(p.390)
- • Decline in business from Indian Railways post-COVID-19(p.386)
- • Multiple manufacturing facilities spread across states requiring regulatory compliance(p.403)
Opportunities
- • Expansion of manufacturing capacity(p.29)
- • New facility establishment in Karnataka(p.29)
- • Growing global ESDM market(p.27)
- • India's push to become electronics manufacturing hub(p.27)
- • Increased working capital funding opportunity(p.29)
- • Expansion of manufacturing capacity through proposed new facilities(p.79)
- • Growth in automotive and industrial verticals(p.59)
- • Increasing OEM/ODM outsourcing trends(p.66)
- • International market expansion potential(p.79)
- • IoT solutions and product engineering growth segment(p.71)
- • Indian ESDM market expected to grow 41.1% CAGR reaching ₹5,978 billion by Fiscal 2026(p.178)
- • Government PLI scheme and Make in India policies driving domestic manufacturing investment(p.181)
- • China+1 strategy creating significant opportunity for Indian manufacturers to capture displaced production(p.179)
- • Strong growth potential in automotive electronics with CAGR of 29.2% expected to reach ₹180 billion by Fiscal 2026(p.184)
- • High growth opportunities in medical electronics with 43% CAGR and huge demand-supply gap(p.199)
- • IoT solutions and embedded systems market growing at 37% CAGR with India's ecosystem flourishing(p.199)
- • Expanding box build capabilities positioning company for higher-margin ODM model transition(p.210)
- • Indian aerospace budget increasing with state-of-art modernization and procurement trends(p.211)
- • Automotive segment expected 22-25% growth in FY2022 driven by autonomous and EV technology(p.211)
- • IoT market in India expanding at 16% CAGR to reach ₹135B by 2026(p.212)
- • Healthcare sector positioned as key diagnostic services centre with large capital expenditure(p.211)
- • Government incentive schemes including PLI for White Goods and Design-Linked Incentive scheme(p.214)
- • Railway segment with global OEM involvement and approval for locomotive electronics restoration(p.212)
- • Customer base expansion from 346 customers (FY2022) through targeted acquisition strategy(p.213)
- • Backward integration opportunity through in-house PCB manufacturing and chip design capabilities(p.214)
- • Structured succession planning framework through family trust(p.277)
- • Established compliance and policy frameworks for growth(p.271)
- • Flexibility in dividend policy for business reinvestment(p.283)
- • Export market expansion with international revenue growing from ₹755.24 million (FY2020) to ₹1,411.77 million (FY2022)(p.394)
- • Government export incentives available with ₹12.62 million received in FY2021(p.386)
- • Capacity expansion with capital expenditure increasing from ₹275.23 million (FY2020) to ₹633.44 million (FY2022)(p.391)
Threats
- • Intense competition from larger regional and global competitors(p.39)
- • Dependence on facility operations subject to natural disasters(p.39)
- • High facility concentration risk(p.46)
- • Exposure to pandemic-related disruptions(p.50)
- • Customer order volatility and cancellations(p.43)
- • Global competition from established manufacturing hubs(p.45)
- • Heavy dependence on imported semiconductors with global supply chain risks(p.53)
- • Customer pricing pressure affecting margins(p.67)
- • Concentrated customer base risk(p.62)
- • COVID-19 pandemic and related disruptions(p.68)
- • Foreign exchange volatility and currency risk(p.78)
- • Distribution and transportation disruptions(p.68)
- • Regulatory and environmental compliance risks(p.80)
- • Capacity underutilization in manufacturing facilities(p.55)
- • Geopolitical risks impacting operations and supply chain(p.63)
- • Global ESDM market growing slower at 4.5% CAGR (2020-2025) versus Indian market growth(p.165)
- • China dominance in global ESDM with 45.5% market share and cost advantages despite China+1 strategy(p.167)
- • Supply chain disruptions and container freight charges increasing global import prices(p.163)
- • Indian component manufacturing ecosystem remains underdeveloped with heavy reliance on imports(p.179)
- • Intense competition from large global players like Foxconn, Flex and domestic competitors with larger scale(p.175)
- • COVID-19 pandemic impact on electronics industry with 3.4% decline in 2020 affecting demand and supply(p.166)
- • Regulatory compliance requirements and tariff barriers for market access in export geographies(p.185)
- • High competition from ESDM industry players affecting pricing and market share(p.234)
- • Dependence on uninterrupted electricity and fuel supplies for manufacturing operations(p.231)
- • Proposed capacity expansion at Mysuru and Manesar facilities subject to delay and cost overrun risks(p.214)
- • Capacity utilization assumptions based on 22 hours/day operations vulnerable to disruptions(p.226)
- • Exposure to raw material price fluctuations and potential supply chain disruptions(p.230)
- • Global supply chain complexity with 447 international suppliers as of June 30, 2022(p.230)
- • Regulatory compliance requirements across multiple segments and geographies(p.232)
- • Restrictive covenants in financing arrangements limiting dividend capacity(p.283)
- • Concentrated shareholding creating governance risks(p.276)
- • Regulatory requirement for material approvals with some expired or pending renewal(p.407)
- • Exposure to finance costs with interest expense on borrowings increasing by 8.49% from ₹203.15 million (FY2020) to ₹220.39 million (FY2021)(p.386)
- • Operating cash flow deterioration with net cash from operations declining from ₹452.47 million (FY2020) to ₹277.30 million (FY2021) and ₹211.09 million (FY2022)(p.388)
- • Tax litigation with 19 outstanding tax cases involving ₹76.93 million across direct and indirect taxes(p.401)
- • Restrictive covenants in borrowing arrangements limiting operational flexibility(p.397)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ramesh Kunhikannan | Promoter | 79.74% | [●] |
| Savitha Ramesh | Promoter | 0.04% | [●] |
| RK Family Trust | Promoter | Negligible | [●] |
| Ramesh Kunhikannan | Promoter | 79.78% (on a fully-diluted basis as on date of RHP) | — |
| Ramesh Kunhikannan | Promoter | 79.74% | — |
| Savitha Ramesh | Promoter | 0.04% | — |
| RK Family Trust | Promoter Group | Negligible | — |
| Ramesh Kunhikannan | Promoter | — | — |
| Ramesh Kunhikannan | Promoter | — | — |
| Savitha Ramesh | Promoter | — | — |
| Ramesh Kunhikannan | Promoter | 88.35% | — |
| Savitha Ramesh | Promoter | 0.04% | — |
| RK Family Trust | Promoter | — | — |
| Ramesh Kunhikannan | Managing Director/Promoter | — | — |
| Savitha Ramesh | Whole Time Director/Promoter | — | — |
| Ramesh Kunhikannan | Selling Shareholder | — | — |
| Freny Firoze Irani | Selling Shareholder | — | — |
Leadership
Ramesh Kunhikannan · Managing Director
Savitha Ramesh · Chairperson
Jairam Paravastu Sampath · Chief Financial Officer
Srividhya Narayanan · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Kaynes Technology India IPO FAQs
What is the lot size of Kaynes Technology India IPO?
The minimum lot size of Kaynes Technology India IPO is 25 shares. One lot costs ₹14,675 at the cut-off price.
When does Kaynes Technology India IPO open and close?
Kaynes Technology India IPO opened for subscription on 10 Nov 2022 and closed on 14 Nov 2022.
What is the listing date of Kaynes Technology India IPO?
Kaynes Technology India IPO listed on 22 Nov 2022.