Integrated electronics manufacturing firm Kaynes Technology raised Rs 256.90 crore ($31 million) from anchor investors on Wednesday, ahead of its initial public offering (IPO).
A total of 28 foreign and domestic investors participated in the anchor round, for which Kaynes allocated about 4.4 million equity shares at Rs 587 apiece.
Foreign investors including Malabar Investments, Ashoka Opportunities Fund (White Oak), Government Pension Fund Global, Nomura and Goldman Sachs and are among the 28 anchor investors to infuse funds.
Kaynes - who has already filed its DRHP (draft red herring prospectus) for IPO with the market regulator Sebi earlier this year - is aiming to raise Rs 858 crore through the subscription. The company had fixed a price band of Rs 559-587 per share for its offer.
The issue opens today and will close on 14 November.
The IPO consists of a fresh issue of shares worth Rs 530 crore and an offer for sale of about Rs 328 crore from existing investors and promoters.
Kaynes will use the proceeds from the fresh issue to repay debt, capex for its manufacturing facilities at Mysuru and Manesar, working capital requirements and to invest in its arm Kaynes Electronics Manufacturing Pvt. Ltd for setting up a new facility at Chamarajanagar in Karnataka.
Out of the total 4.4 equity shares allocated to the anchor investors, 1.8 million shares were allocated to nine mutual funds through 14 schemes amounting to Rs 103.66 crore comprising 40.35% of the total anchor book size, the company said.
Domestic institutions that participated include Volrado Venture Fund (ENAM), White Oak Mutual Fund, Abakkus, ICICI Prudential MF, Axis Mutual Fund, Nippon Life India, Aditya Birla Sun Life, Mirae Asset, Franklin India and Tata Mutual Fund.
Kaynes Technology, incorporated in 2008, offers design led electronics manufacturing with over eight manufacturing facilities in India, in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand.
The company had reported a profit of Rs 41.68 crore in the financial (FY) year ending March 2022 against Rs 9.73 crore in the previous year. It reported a revenue of Rs 706.24 crore in FY22 up 68% over the previous fiscal.
It has served over 229 customers in 21 countries and multiple industry verticals including automotive, aerospace and defence, industrial, railways, medical, and information technology.
Kaynes competes with Dixon Technologies India Limited, Syrma SGS Technology Limited and Amber Enterprises India Limited.
