Kaynes Technology India Limited , a prominent player in the electrical equipment sector, has reported significant progress in the utilization of funds raised through its Initial Public Offering (IPO) and subsequent Qualified Institutional Placements (QIPs), according to recent monitoring agency reports.

IPO Proceeds Fully Utilized

The company's Initial Public Offering from November 2022, which raised net proceeds of INR 625.74 crore, has been fully utilized across five key objectives:

QIP Fund Utilization

Kaynes Technology India has also made substantial progress in deploying funds raised through two Qualified Institutional Placements:

1. December 2023 QIP:

   • Total raised: INR 1,374.00 crore
   • Utilized: INR 737.38 crore
   • Remaining unutilized: INR 636.62 crore

2. June 2025 QIP:

   • Total raised: INR 15,749.66 crore
   • Utilized: INR 1,200.00 crore
   • Remaining unutilized: INR 14,549.66 crore

Key Utilization Highlights

December 2023 QIP:

• INR 313.11 crore towards establishing an OSAT (Outsourced Semiconductor Assembly and Test) facility
• INR 114.27 crore for setting up a PCB (Printed Circuit Board) facility
• INR 310.00 crore for general corporate purposes

June 2025 QIP:

• INR 840.50 crore for repayment of outstanding indebtedness
• INR 311.09 crore for inorganic growth opportunities, including acquisitions
• INR 48.41 crore for general corporate purposes, primarily advance tax payments

Monitoring Agency Reports

ICRA Limited and CRISIL Ratings Limited, appointed as monitoring agencies, have reported no material deviations from the stated objectives for both the IPO and QIPs. The proceeds are being deployed according to the respective offer documents.

Unutilized Funds Management

The company has invested the unutilized funds from the recent QIPs in fixed deposits with reputable banks, ensuring liquidity and modest returns while awaiting deployment.

Future Outlook

With significant funds still available from the recent QIPs, Kaynes Technology India is well-positioned to pursue its growth strategies, including debt reduction, capacity expansion, and potential acquisitions. The company's prudent fund management and adherence to stated objectives reflect a strong commitment to transparent financial practices and strategic growth initiatives.

As Kaynes Technology India continues to deploy these funds, investors and industry observers will be keenly watching the impact on the company's operational capabilities and market position in the electrical equipment sector.

Kaynes Technology India Limited, a leading player in the electronics manufacturing services (EMS) sector, has reported robust financial results for the first quarter and announced a significant expansion plan in Tamil Nadu.

Q1 Financial Highlights

Kaynes Technology demonstrated strong growth in Q1:

• Total revenue reached ₹6,735.00 million, marking a 34% year-on-year increase
• Operational EBITDA stood at ₹1,130.00 million, up 69% year-on-year
• EBITDA margin expanded by 350 basis points to 16.80%
• Profit after tax (PAT) grew 47% year-on-year to ₹746.00 million, with an 11.10% margin
• Order book expanded from ₹50,386.00 million to ₹74,011.00 million

Expansion Plans and MoU with Tamil Nadu Government

Kaynes Circuits India Private Limited, a wholly-owned subsidiary of Kaynes Technology, has signed a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu. The agreement outlines plans for a substantial investment in the state:

• Proposed investment of approximately ₹4,995.00 crores over a 6-year period
• Establishment of manufacturing facilities, including greenfield projects and capacity expansions
• Focus on producing Multilayer PCBs (up to 74 layers), HDI PCBs (up to 8 layers), and Flexible PCBs
• Production of high-performance laminates for advanced electronic applications

The MoU aims to explore financial incentives, industrial policies, and potential structured assistance packages offered by the Tamil Nadu government. In return, the state government has agreed to provide necessary facilitation and support, including assistance with infrastructure and regulatory clearances.

Business Outlook and Strategy

Kaynes Technology is transitioning from a pure EMS provider to an integrated ESDM (Electronic System Design and Manufacturing) company. This strategic shift is evident in the following areas:

• Increase in ODM (Original Design Manufacturing) portion from 10% to 20% of the portfolio
• Expansion into advanced packaging and semiconductor assembly
• Diversification across multiple sectors including automotive, industrial, electric vehicles, aerospace, defense, and railways

The company maintains its full-year guidance of ₹4,500.00 crores in revenue, comprising:

Upcoming Projects and Timelines

Kaynes Technology has outlined several key projects in the pipeline:

• OSAT facility in Sanand: Expected to begin commercial production by December
• Multilayer HDI PCB plant in Chennai: Targeted for operational readiness by January
• Kavach project (railway safety system): Currently in the pilot phase, with commercial operations expected to commence soon

Management Commentary

Ramesh Kannan, Managing Director of Kaynes Technology, commented on the results: "Our performance this quarter has not only been strong in absolute terms but is also setting industry benchmarks for the growth of EMS companies in India. Despite facing macroeconomic headwinds and global uncertainties, Kaynes has stood resilient, consistently delivering on our strategic priorities."

Jairam Sampath, Whole-Time Director and CFO, added: "We're seeing margin expansion across all sectors, with increases ranging from 50 to 200 basis points at the gross margin level. This, coupled with our strategic shifts and upcoming projects, positions us well for sustained growth and profitability."

As Kaynes Technology continues its growth trajectory and strategic expansion, the company appears well-positioned to capitalize on the growing demand for electronic manufacturing services and advanced technological solutions in India and beyond.