About the Company:
Kaynes Technology India Ltd is an end-to-end and IoT solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing (“ESDM”) services.
Company has experience in providing conceptual design, process engineering, integrated manufacturing and life-cycle support for major players in the automotive, industrial, aerospace and defence, outer-space, nuclear, medical, railways, Internet of Things (“IoT”), Information Technology (“IT”) and other segments.
Company has long-term relationships with a large customer base diversified across verticals and geographies.
Company has a portfolio of hardware and software accelerators, cloud platform based service and solution offerings which includes ODM product design, IoT data and analytics platform, and vertical IoT solutions.
In the three months ended June 30, 2022, company served 229 customers in 21 countries globally and multiple industry verticals such as automotive, aerospace and defence, industrial, railways, medical and IT / ITES.
Company’s Organisational Structure:
Company’s Manufacturing facilities:
Company operates eight strategically located manufacturing facilities across India in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand.
Certain of the manufacturing facilities are approved under the Electronics Hardware Technology Park Scheme of Software Technology Park of India, Bengaluru and 100% Export Oriented Unit.
Company’s manufacturing infrastructure includes 269,000 square feet of electrostatic discharge free facilities with seven robotics surface mount lines which possess the ability to populate more than 1,500 million components, 57 through-hole devices (“THD”) and exclusive clearance lines.
Manufacturing Facilities:
Services offered by Company’s various business verticals:
OEM – Turnkey Solutions – Box Build (“OEM – Box Build”): Company undertakes “Build To Print” or “Build to Specifications” of complex box builds, sub-systems and products across various industry verticals.
OEM – Turnkey Solutions – Printed Circuit Board Assemblies (“PCBAs”) (“OEM – Turnkey Solutions”): Company undertakes turnkey electronics manufacturing services of PCBAs, cable harness, magnetics and plastics ranging from prototyping to product realization including mass manufacturing.
ODM: Company offers ODM services in smart metering technology, smart street lighting, brush less DC (“BLDC”) technology, inverter technology, gallium nitride based charging technology and providing IoT solutions for making smart consumer appliances or devices IoT connected.
Product Engineering and IoT Solutions: Company offers product engineering and solutions and have a portfolio of hardware, software accelerators and proprietary sensors along with cloud platform based service and solution offerings in asset tracking, remote device management and smart product development.
Company also provide end-to-end IoT and cloud enablement solutions and offer IoT data and analytics platform and vertical IoT solutions.
Key Competitors in the Business:
- Bharat FIH Ltd
- Dixon Technologies India Ltd
- Amber Enterprises India Ltd
- SFO Technologies Private Ltd
- Syrma SGS Technology Ltd
- Elin Electronics Ltd
- Avalon Technologies Pvt Ltd
- VVDN Technologies Pvt Ltd
- Sanmina-SCI Technology India Pvt Ltd
Comparison of Presence of key ESDM Companies in the Application Segments, India, Fiscal 2022:
Management Team:
- Mr. Ramesh Kunhikannan (Designation: Managing Director)
- Mrs. Savitha Ramesh (Designation: Chairperson and Whole-time Director)
Objectives of the Issue:
Offer for Sale: (Rs.328 cr )
- Each of the Selling Shareholders will be entitled to the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 530 cr)
- Repayment/ prepayment, in full or part, of certain borrowings availed by our Company.
- Funding capital expenditure towards expansion of our existing manufacturing facility at Mysuru, Karnataka, and near our existing manufacturing facility at Manesar, Haryana.
- Investment in our wholly owned Subsidiary, Kaynes Electronics Manufacturing Private Limited, for setting up a new facility at Chamarajanagar, Karnataka.
- Funding working capital requirements of our Company.
- General corporate purposes.
Expansion of existing manufacturing facility:
Funding capital expenditure towards expansion of our existing manufacturing facility at Mysuru, Karnataka, and near our existing manufacturing facility at Manesar, Haryana
As of June 30, 2022, company operate eight strategically located manufacturing facilities across India in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand.
In order to support the growth strategy across India, company intends to undertake expansion at our existing facility at Mysuru, Karnataka and near our existing facility at Manesar, Haryana.
Company has experienced significant growth in the demand for its services, evidenced by the growth in order book of Rs.2266.2 crores as of June 30, 2022 as against full year revenues of Rs.706.2 crores during the fiscal 2022.
Hence, the Company has to maintain adequate capacity to meet the growing demand. In order to provide focussed services to our customers, the Company has proposed to expand certain of its existing facilities.
These facilities also address the requirements of a significant portion of our customer base that comprised 229 customers across 21 countries in the three months ended June 30, 2022.
The objective of the proposed expansion is to increase our manufacturing capacity, better serve our existing customers and assist us in better addressing the business requirements of customers.
Comparison of manufacturing facilities in terms of capacity utilization, production are as follows:
Positives for the Company:
Long-standing relationships with marquee customer base.
- Company’s customers span multiple sectors, ranging from electronics, to automotive, to healthcare, industrial and IoT. We have a balanced mix of domestic and international customers including certain Fortune 500 companies, multinational corporations and start-ups.
- Company’s customers include Agappe Diagnostics Ltd, Canyon Aero, Frauscher Sensor Technology India Pvt Ltd, Hitachi Rail STS India Pvt Ltd, India Japan Lighting Pvt Ltd, Siemens Rail Automation Pvt Ltd, Iskraemeco India Pvt Ltd and Tonbo Imaging India Pvt Ltd.
Expand manufacturing capacity at our existing facilities and set-up additional strategically located facilities.
Company intend to expand our existing manufacturing facilities to increase our manufacturing capacity. The following table sets forth further information relating to our proposed manufacturing facilities.
Received approval under the Production Linked Incentive Scheme.
- Company has received approval under the Production Linked Incentive Scheme for White Goods (Air Conditioner and LED Lights whereby our Company has committed to
make an investment of Rs.50.0 crores. - In addition, company’s Subsidiary, Kaynes International Design and Manufacturing Private Limited has submitted an application under the Scheme Design Led Manufacturing of Telecom and Networking Equipments which is under consideration.
Financials of the Company:
| (in Crores) | FY 20 | FY 21 | FY 22 | 30th June 22 |
|---|---|---|---|---|
| Revenue | 370.1 | 424.6 | 710.3 | 199.9 |
| Net Profit | 10.0 | 8.8 | 41.2 | 9.8 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Kaynes Technology India Ltd | 10 | 8.96 | 85.3 | 20.54% | 43.12 |
| Syrma SGS Technology Ltd | 10 | 5.25 | 63.56 | 13.58% | 51.2 |
| Dixon Technologies Ltd | 2 | 32.00 | 137.49 | 21.90% | 169.3 |
| Amber Enterprises India Ltd | 10 | 32.41 | 61.72 | 6.42% | 526.2 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 10th November 2022 |
| Issue Closes on:. | 14th November 2022 |
| Issue Price | Rs.559 – 587 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 25 shares |
| Minimum Investment | Rs.14,675 |
| Issue Constitutes | 25.13% |
| Issue Size | Rs.858 cr ($ 103 million) |
| Market Cap | Rs.3412 cr ($411 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 90,28,960 |
| Equity Shares Offered (OFS) | 55,84,664 |
| Total Equity Shares Offered (Fresh + OFS) | 1,46,13,624 |
| Equity Shares Prior to the issue | 4,91,13,536 |
| Equity Shares after the issue | 5,81,42,496 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 17th November 2022 |
| Initiation of Refunds | on or Before 18th November 2022 |
| Credit of Equity Shares: | on or Before 21st November 2022 |
| Listing Date: | on or Before 22nd November 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 8.96 | 85.3 | 20.54% | 43.12 |
| Company Contact Info: |
|---|
| Kaynes Technology India Ltd 23-25, Belagola, Food Industrial Estate, Metagalli P.O., Mysuru – 570016, Karnataka, India Tel: +91 82125 82595 Email: kaynestechcs@kaynestechnology.net Website: www.kaynestechnology.co.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 247 Park, 1st Floor L.B.S. Marg, Vikhroli West Mumbai 400 083, Maharashtra, India Tel: +91 810 811 4949 E-mail: kaynes.ipo@linkintime.co.in Website: www.linkintime.co.in |
