In line with analysts’ expectations, electronics manufacturing company Kaynes Technology India made its debut on the exchange today despite recent market volatility.

The stock is listed at a 32% premium to the issue price of Rs 587. It opened at Rs 778 on NSE and Rs 775 on BSE.
The Mysore-based company, which provides various electronic systems design and manufacturing (ESDM) services, had its Rs 858 crore IPO 34.16 times subscribed between November 10-14.

Qualified institutional investors applied for stock quotas 98.47 times, followed by non-institutional investors 21.21 times, retail investors 4.10 times, and employees 11.92 times.

Kaynes Technology operates eight manufacturing plants in the Indian states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Uttarakhand.

The domestic addressable electronic system design and manufacturing (ESDM) market totalled Rs 2,65,400 crore in FY21 and is expected to grow at an average annual rate of 30.3% over the five years from FY21 to reach Rs 9,96,300 crore by FY26. According to the company’s RHP, the contribution of domestic ESDM companies is expected to increase from around 40% in FY21 to 41.1% in FY26.

According to analysts, the company’s key strengths lie in its diversified business model, product portfolio with cross-industry vertical applications, especially defence, and long-standing relationships with a large customer base.

Proceeds from the new shares will be used by Kaynes Technology to repay debt, expand existing manufacturing facilities in Mysore (Karnataka) and Manesar (Haryana), invest in a subsidiary and set up a new factory.