Shares of Kaynes Technology India Ltd. surged over 16% to hit a record high on Monday after it inked a pact with the Telangana government to set up a semiconductor plant in the state for Rs 2,800 crore.
The proposed investment is expected to generate direct employment for over 2,000 people, according to an exchange filing.
ITE&C and Industries Minister K.T. Rama Rao met Kaynes Managing Director Ramesh Kunhikannan and Chairperson Savitha Ramesh to announce the setting up of the facility in the state.
Delighted to welcome @Kaynestech for setting up of OSAT & Compound Semiconductor manufacturing facility in Telangana, with an investment of 2800 Cr generating 2000 jobs. 😊
October 6, 2023
Proud moment for Telangana as we now join the league of coveted global destinations that host… pic.twitter.com/2Z8e4DJcJ7The electronics contract manufacturer earlier signed a memorandum of understanding with the Karnataka government for Rs 3,750 crore to set up a semiconductor assembly and testing facility and a printed circuit board manufacturing plant through the company's step-down subsidiaries.
Shares of the company rose as much as 16.31%, before paring gains to trade 3.81% higher at 10:20 a.m., compared to a 0.36% decline in the benchmark NSE Nifty 50.
The stock has risen 252.47% on a year-to-date basis and 287% since its listing on Nov. 22, 2022. The total traded volume so far in the day stood at 4.1 times its 30-day average. The relative strength index was at 82, implying that the stock may be overbought.
All 12 analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 13.1%.
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