Stocks Update: “Kaynes Technology India” Shares In Focus As The Firm Sets The QIP Floor Price At A 6% Discount
Kaynes Technology India said that its Fund Raising Committee would meet on Thursday, December 21, to determine the issue price of equity shares to be issued.
Kaynes Technology India will hold a Fund Raising Committee meeting on Thursday, December 21, to determine the issue price of equity shares. The company revealed on Tuesday morning that it had launched a qualified institutions placement (QIP) of equity shares at a floor price of Rs 2,449.96 per share. The corporation may offer a 5% floor price discount at its discretion. On November 18, Kaynes Technology India’s board approved raising funds through one or more public and private offerings, including preferential allotment or qualified institutions placement, for up to Rs 1,400 crore.
“According to Regulation 176(1) of the SEBI ICDR Regulations and with the approval of the company’s members through a special resolution on Saturday, December 16, 2023, the company may offer a 5% discount on the issue’s floor price. In its BSE filing, Kaynes Technology stated it would engage with the Issue lead managers to set the Issue price. Kaynes Technology India said its Fund Raising Committee would meet on Thursday, December 21, to determine the issue price of equity shares to be issued, including any SEBI ICDR Regulation-compliant discount on the floor price.
A $2.5 million acquisition of Digicom Electronic Inc. was also disclosed. USA-based Digicom Electronics Inc. manufactures electronics. On Monday, newly listed Kaynes Technology Ltd. announced a QIP offering to collect capital.QIP floor price of ₹2,449.96 per share is 6% lower than Monday’s closing price for Kaynes shares. The exchange filing stated that the corporation may lower the floor price by up to 5%.
The company’s fund-raising committee will set the QIP issue price on December 21. According to sources, the QIP issue price is expected to be ₹2,424 per share, a 1.1% decrease from the floor price. Sources say the company’s promoters will have a 90-day lock-up after QIP. The issue’s Book Running Lead Managers are Axis Capital, DAM Capital Advisors, IIFL Securities, and Nomura Financial Advisory.
Acquisition by Kaynes
Digicom Electronics, a US-based electronic manufacturing services company, was also acquired. The acquisition will cost $2.5 million in cash. Kaynes will buy 100% of Digicom to expand in the US, according to a separate exchange filing.
Before the end of March 2024, the transaction is likely to be completed
Digicom Electronics recorded a turnover of $7.78 million for the year ending December 2022, up from $6.15 million in 2021 and $6.59 million in 2020.
At 2,603.25, Kaynes Technology shares rose 0.9%. In November 2022, the shares were listed at 32.5% above their 587 issue price. Since then, the stock has grown 4x and 251% in 2023.
