IPO anniversary: Kaynes Technology gained over 300% from its issue price in a year

Kaynes Technology, a prominent leader in the integrated electronics manufacturing sector, offering end-to-end solutions enhanced by IoT capabilities, celebrated the first anniversary of its IPO journey today.

The IPO opened on November 10, 2022, and closed on November 14, 2022. On the final day of the IPO window, it witnessed a subscription rate of 34.16 times. The public issue received an impressive response, with the retail category being subscribed 4.10 times, the QIB category achieving a subscription rate of 98.47 times, and the NII category reaching a subscription rate of 21.21 times.

The IPO price range was set between Rs 559 and Rs 587, with a face value of Rs 10 per share and a lot size of 25 shares. The total size of the company’s IPO was Rs 857.82 crore, and the final share issue price was fixed at Rs 587 each.

The stock debuted on November 22, 2022, with a premium in the market, experiencing an impressive increase of 32% to Rs 775 per share on the BSE. This means that investors generated a substantial return on the listing day itself. However, it concluded the day at Rs 690 per share.

Today it completed its one-year listing journey and finally concluded the trading session at Rs 2490 per share, which represents a 324% increase compared to its issue price. Even if someone had bought shares on the listing day at the closing price, they would have generated approximately a 260% return. Investors who placed their trust in the company and held their investments through all the market fluctuations have been handsomely rewarded with impressive returns since its IPO.

Financial Performance

In Q2 FY24, the company experienced an increase in its revenue from operations, rising from Rs 263 crore to Rs 292 crore, marking an 11% increase. The company reported an operating profit of Rs 39 crore, compared to Rs 41 crore in the corresponding quarter of the previous year. The operating profit margin stood at 13% during the June quarter. Meanwhile, the company’s net profit for the quarter amounted to Rs 25 crore, showing a significant increase compared to the profit of Rs 19 crore in the corresponding quarter of the previous year.

The company’s ROCE and ROE are 21.5% and 16.3%, respectively. The company’s shares are currently trading at a P/E ratio of 132 times in the market.

Business Overview

Kaynes Technology India Limited, an Indian company, specializes in end-to-end solutions and integrated electronics manufacturing empowered by Internet of Things (IoT) capabilities. The company’s focus encompasses conceptual design, process engineering, comprehensive manufacturing, and ongoing support for various industries including automotive, industrial, aerospace and defense, space exploration, nuclear, medical, railways, IoT, information technology (IT), and more. Their services comprise OEM-Turnkey Solutions in Box Build and Printed Circuit Board Assemblies (PCBAs), Original Design Manufacturing (ODM), Product Engineering, and IoT Solutions.

The company caters to electronics manufacturing needs, ranging from PCBAs, cable harnesses, and magnetics, to plastics, offering comprehensive services from prototype development to final product realization. In addition, Kaynes Technology provides ODM services specializing in smart metering, smart street lighting, and inverter technology. Their expertise also extends to conceptual design and product engineering services within the industrial and consumer sectors.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.