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Kaynes Tech is the latest addition to the Indian bourses as it performed admirably on its debut today.
Kaynes Technology Limited is an electronics manufacturer which uses IoT solutions and its experience of three decades to provide services like conceptual design, process engineering, integrated manufacturing, and life-cycle support for major players in the automotive, industrial, aerospace and defense, outer-space, nuclear, medical, railways, IoT, IT and other segments.
Its services are used in the Automotive, Industrial, Railways, IoT/IT, Consumer, Aerospace, Outer Space, and Defence segments. It operates 8 facilities across India with over 200 customers served in over 20 countries.
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Before the company launched its IPO on 9th November, the company invited anchor investors to invest in its anchor book as several investors came in. Volrado Venture, Nomura Trust, Public Sector Pension Investment Board, Goldman Sachs Funds, ICICI Prudential, Nippon Life India, Axis Mutual Fund, Eastspring Investments India, HDFC Trustee, Aditya Birla Sun Life, Malabar India Fund, Whiteoak Capital, Mirae Asset, Abakkus Emerging Opportunities Fund, Franklin India, and Tata Mutual Fund subscribed to the anchor book and helped the company raise around Rs 257 crores.
Recently, defense stocks have been giving record returns with some stocks growing as much as 40%! This was on account of the Indian government's increased spending on defense.
As such, investors rushed to apply for the IPO of Kaynes Technology. QIBs oversubscribed their portion 98.47x times!! NIIs and RIIs followed suit to get a slice of the pie as their portions were oversubscribed 21.21x and 4.1x times. All in all, the entire IPO was oversubscribed 33.16x times!!
The expectations regarding the stock were very high. Earlier today, the stock was trading at a premium of over 30% as analysts estimated a listing gain of 35-40% from the stock.
The stock was listed at a 32% premium at Rs 778 per share at 9:45 today. However, it faced massive selling pressure after listing. It surged initially but declined under the pressure of the bears and touched a low of Rs 712 per share within 30 minutes of listing.
Bulls managed to put up a fight, but after noon, selling pressure took over the scrip once again, ultimately closing at Rs 689.95 per share, up 17.5% nonetheless.
The initial investment of Rs 14,675 (25 shares x Rs 587 per share) grew to Rs 17,249 (25 shares x Rs 689.95 per share) after today's intense session.
Most analysts are positive towards the stock on a long-term basis but a few have suggested that allottees book partial profits.
Article by Aman Agarwal
This news piece is brought to you in association with jobaaj.com
