Kaynes Technology India Limited (KTIL) has received the green light from financial market regulator Sebi to raise funds through an initial public offering (IPO). The IPO consists of a new issue of capital shares totaling Rs 650 crore and an offer for sale (OFS) of up to 72 lakh capital shares by a promoter and an existing shareholder, according to the Red Herring Prospectus Project (DRHP).

The SFO includes the sale of up to 37 lakh shares by promoter Ramesh Kunhikannan and up to 35 lakh shares by existing shareholder Freny Firoze Irani.

The company, which filed preliminary IPO documents with Sebi in April, obtained its comment letter on Oct. 6, an update with the regulator revealed Monday.

In Sebi parlance, observation implies that he is moving forward to launch the IPO.

According to the draft documents, the proceeds from the new issuance worth Rs 130 crore will be used to repay debt and Rs 98.93 crore will be used to finance capital expenditure of its manufacturing facilities in Mysore and Manesar.

Additionally, the company plans to use Rs 149.30 crore to invest in its branch Kaynes Electronics Manufacturing Pvt Ltd for setting up a new facility at Chamarajanagar in Karnataka. It will use up to Rs 114.74 crore to fund the working capital requirement and general business proposals.

Kaynes Technology, based in Mysore, is a leading manufacturer of end-to-end integrated electronics and IoT (Internet of Things) solutions, with capabilities across the spectrum of system design and manufacturing services electronics.

He has experience in conceptual design, process engineering, integrated manufacturing and lifecycle support for major players in automotive, industrial, aerospace and defense, from outer space, nuclear, medical, railways, IoT, information technology (IT) and others. segments.

The company has eight production plants in Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Uttarakhand. It has a total capacity of around 600 million components as of December 2021.

For FY21, the company recorded revenue of Rs 420.63 crore compared to Rs 368.24 crore in the previous fiscal year. Net profit for the period under review was Rs 9.73 crore compared to Rs 9.35 crore in the previous financial year.

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