Kaynes Technology IPO: Shares trade 10% lower than listing price despite promising debut

Despite the recent market fluctuation, the leading electronics manufacturing business Kaynes Technology India achieved a great debut on the bourses today. The stock was listed at a premium of 32 percent above its initial issue price of Rs 587. On the NSE and BSE, it opened trading at Rs 778 and Rs 775, respectively. At the time of writing (12:37 PM), the shares of Kaynes Technology were trading at Rs 693.55 apiece on the BSE, 10.51 percent or Rs 81.45 lower than its listing price.

The initial public offering (IPO) was launched on 11 November and concluded on 14 November. The issue was subscribed 34.16 times. The share allocated for qualified institutional buyers (QIBs) was bid upon 98.47 times, the non-institutional investors’ (NII) portion 23.07 times, and the retail individual buyers’ portion 4.10 times. On November 18, the equity shares for the initial public offering were allocated.

Kaynes Technology runs a total of eight manufacturing plants in the Indian states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand. They are going to utilise the revenues from the fresh issue to pay off debt, expand their current manufacturing facilities in Mysuru and Manesar, invest in a subsidiary and construct a brand-new facility in Chamarajanagar (Karnataka).

In the Fiscal Year 21, the domestic addressable electronics system design and manufacturing (ESDM) market had a total value of Rs 2,65,400 crore. This market is predicted to increase at an average annual rate of 30.3 percent over the next five years, reaching Rs 9,96,300 crore in FY26. According to the company’s RHP, the contribution from domestic ESDM companies is predicted to rise from roughly 40 percent in FY21 to 41.1 percent by FY26.

Analysts claim that Kaynes Technology’s main strength is its highly diversified business model, which includes a portfolio with applications in many different industry segments, particularly defence, and a distinguished customer base.

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