Kaynes Technology India Limited has obtained the approval of 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 consists of a fresh issue of equity shares aggregating to Rs 6.50 billion, and an offer-for-sale (OFS) of up to 7.2 million equity shares by a promoter and an existing shareholder.
Meanwhile, 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. Going by the draft papers, proceeds from the fresh issue worth Rs 1.30 billion is expcted to be utilised for repaying debt and Rs 989.30 million would be utilised for funding capital expenditure (capex) for its manufacturing facilities at Mysore and Manesar.
Besides, the company plans to use Rs 1.49 billion towards investment in its subsidiary, Kaynes Electronics Manufacturing Private Limited for setting up a new facility at Chamarajanagar in Karnataka.
