Kaynes Technology India Ltd. announced the launch of its qualified institutional placement on Thursday to raise funds of up to Rs 1,600 crore.
The floor price for the company's QIP has been fixed at Rs 5,625.75 per share, which is around 4.8% lower than the stock's closing price of Rs 5,612.
Promoters of the company are offloading up to 28.5 lakh shares, marking 4.67% stake of pre-issue outstanding equity capital at the upper end of the offer, as per the term sheet.
Net proceeds from the fundraiser are expected to be used for prepayment of debt and capital expenditure, funding of working capital requirements, funding of inorganic growth opportunities, and general corporate purposes.
Axis Capital Ltd., Motilal Oswal Investment Advisors Ltd., and Nomura Financial Advisory and Securities (India) Pvt. Ltd. are the book-running lead managers of the QIP.
The company may offer a discount of not more than 5% on the floor price calculated for the QIP, according to the filing.
The company had recently through its arm Kaynes Semicon Pvt., entered into an asset purchase agreement for power module production lines with Japanese firm Fujitsu General Electronics Ltd. The firm bought production lines for power modules from the company for a sum of 1.59 billion Japanese yen.
The firm said it will build a 'Kayne Centre', which is a venture partly focused on education and partly on science and technology, according to Chief Financial Officer Jairam Sampath.
This project will be funded via capital raised from a bulk deal on June 5. A promoter of the company divested a 1.8% stake in the company for Rs 624 crore through open market transactions.
Shares of the company closed 1.89% higher at Rs 5,612 apiece on the National Stock Exchange. The share price has fallen 25.01% in the last 12 months, but rose 45.40% on a year-to-date basis.
Nine out of the 24 analysts tracking the company have a 'buy' rating on the stock, 10 recommend 'hold' and 15 suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 10.1%.
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