SEBI greenlights Kaynes Technology’s attempt to raise funds through IPO

By Anusha  | Date: 2022-10-11

SEBI greenlights Kaynes Technology’s attempt to raise funds through IPO

As per recent citations, Mysore-based Kaynes Technology Inc. has received a go from SEBI to raise funds by the way of an Initial Public Offering (IPO).

The Draft Red Herring Prospectus (DRHP) cites that the IPO includes a fresh issue of equity shares amounting up to USD 78.88 million combined with an Offer for Sale (OFS) issue of nearly 7.2 million equity shares including 3.7 million shares held by promoter Ramesh Kunhikannan, and 3.5 million shares held by Freny Firoze Irani, an existing shareholder.

For those unaware, the company submitted all the documentation for an IPO way back in April. SEBI, after scrutinizing the company’s adherence to all the parameters sent its observation letter on 6th October greenlighting the request to initiate an IPO.

Draft papers for the same reveal that earnings garnered from the fresh issue worth USD 15 million would be utilized to cover the debt of USD 11 million and the remaining amount would be directed toward capital funds for the manufacturing facilities of Mysore and Manesar.

In addition, the company plans to utilize the sum of USD 18 million that it will raise through the IPO in establishing a manufacturing unit for its subsidiary, Kaynes Electronics Manufacturing Pvt Ltd. in Chamarajanagar, Karnataka.

It would also utilize a sum of USD 13 million to effectively manage operational expenses and other corporate affairs.

For the uninitiated, Kaynes Technology Inc. is a prominent end-to-end encrypted and IoT-based integrated electrical manufacturing giant that aids customers with a number of capabilities ranging from manufacturing services to electronic system designs.

The company boasts of an unparalleled experience in providing a plethora of services such as process engineering, conceptual design, and integrated production life cycle support for various enterprises that function within the industrial verticals of automation, aerospace & defense, medical, railways, nuclear energy, Information Technology (IT), and outer space among others.

Source Link: - https://www.moneycontrol.com/news/business/ipo/kaynes-technology-gets-sebis-go-ahead-to-float-ipo-9305241.html

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Anusha     aeresearch.net

Anusha

As a voracious reader and thinker, employing words has always been my preferred method of narration. Anusha’s conviction that a drop of ink possesses the ability to influence even the most stubborn minds has been strengthened by completing a Master’s degree in Engl...

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