New Delhi
Kaynes Technology India Limited (KTIL), an end-to-end and IoT solutions enabled integrated electronics manufacturing player, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The IPO consists of a fresh issue of equity shares aggregating to Rs 650 crore, and an offer for sale (OFS) of up to 7.2 crore equity shares by a promoter and an existing shareholder, according to the draft red herring prospectus (DRHP).
The OFS comprises sale of up to 37 lakh equity shares by promoter Ramesh Kunhikannan and up to 35 lakh equity shares by existing shareholder Freny Firoze Irani. The offer also includes reservation of up to Rs 1.5 crore for subscription by eligible employees.
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 130 crore. If such placement is completed, the fresh issue size will be reduced.
The proceeds from the fresh issue worth Rs 130 crore will be used to repay debt and Rs 98.93 crore will be utilised for funding capital expenditure for its manufacturing facilities at Mysore and Manesar. Also, the company plans to use Rs 149.30 crore towards investment in its arm Kaynes Electronics Manufacturing Pvt Ltd for setting up a new facility at Chamarajanagar in Karnataka.
It will use up to Rs 114.74 crore for funding working capital requirement and general corporate proposes.
Mysore-based Kaynes Technology is a leading end-to-end and IoT (Internet of Things) solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing services.
