Kaynes Technology India Limited (KTIL) has filed preliminary papers with Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
According to the draft red herring prospectus (DRHP), the IPO will consists of a fresh issue of equity shares aggregating to Rs 6.50 billion, and an offer for sale (OFS) of up to 72 million equity shares by a promoter and an existing shareholder. The OFS comprises sale of up to 3.7 million equity shares by promoter Ramesh Kunhikannan and up to 3.5 million equity shares by existing shareholder Freny Firoze Irani.
Meanwhile, the offer also includes reservation of up to Rs 15 million for subscription by eligible employees. Also, the company may consider a further issue of equity shares, including a rights issue, private placement, preferential offer, or any other method aggregating up to Rs 1.30 billion. In addition, if such placement is completed, the fresh issue size will be reduced.
The proceeds from the fresh issue worth Rs 1.30 billion will be used to repay debt and Rs 989.3 million will be utilised for funding capital expenditure (capex) for its manufacturing facilities at Mysore and Manesar. Also, the company plans to use Rs 1.49 billion towards investment in its arm Kaynes Electronics Manufacturing Private Limited for setting up a new facility at Chamarajanagar in Karnataka. Kaynes Technology will use up to Rs 1.14 billion for funding working capital requirement and general corporate proposes.
The company has eight production plants in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Uttarakhand. It has a total capacity of approximately 600 million components as of December 2021.
