Kaynes Technology India Ltd. will build the Kayne Centre, which will be part education and part science and technology-related venture, according to Chief Financial Officer Jairam Sampath.
Earlier on June 5, a promoter of the Mysuru-based Kaynes Technology India divested a 1.8% stake in the company for Rs 624 crore through open market transactions.
According to the bulk deal data, promoter Ramesh Kunhikannan sold 6.25 lakh shares of Kaynes Technology India on the NSE and offloaded 5 lakh shares of Kaynes on the BSE — cumulatively a 1.8% stake in the company. After the latest transaction, Kunhikannan's stake in Kaynes Technology India came down to 55.91% from 57.71%.
"Whatever has been sold in this small block deal, all of that money will go to the Kaynes Tech Centre. This is part professional-part social venture," Sampath told NDTV Profit.
"The Centre will be built in Mysore. We have started working on this and hopefully in a three-four-year timeframe, this will become a reality," he said. "This will also help in developing the technology aspirations of people nearby."
Kaynes Technology has a strong order book and the order inflow is also increasing. "For this year, we are guided for good growth... Without the acquired company, which is the Canada-based August Electronics, we would do about Rs 4,350 crore," he said.
"We have also increased our guidance on profitability. We would probably hit 15.6% Ebitda this year. Because most of the orders are visible to us and we can make a fair bit of estimation," Sampath said.
Shares of Kaynes Tech closed 1.25% lower at Rs 5,660 apiece, compared to the 0.4% advance in the benchmark NSE Nifty 50. It has risen 67.31% in the last 12 months and fallen 23.77% on a year-to-date basis.
Nine out of the 24 analysts tracking the company have a 'buy' rating on the stock, 10 recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 9.2%.
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