Kaynes Technology shares fall 4% as firm to invest Rs 22.40 crore in subsidiary

Shares of Kaynes Technology India Ltd slumped nearly 4% today after the firm said it would acquire 49,12,281 shares of Kemsys Technologies Private Limited (Kemsys), wholly owned subsidiary of the company for Rs 22.40 crore. The shares were acquired at a premium of Rs 44.60 on rights issue basis.  

The stock of Kaynes Technology India slumped 3.81% to Rs 1986.25 against the previous close of Rs 2065.10 on BSE.   

Market cap of the firm fell to Rs 11,728 crore. A total of 5.787 shares of the firm changed hands amounting to a turnover of Rs 1.18 crore on BSE. Kaynes Technology shares have a one-year beta of 1.2, indicating high volatility during the period.    

In terms of technicals, the relative strength index (RSI) of Kaynes Technology stands at 57.8, signaling the stock is trading neither in the oversold nor in the overbought territory. Kaynes Technology shares are trading lower than the 5 day, 10 day but higher than  the 20 day, 50 day, 100 day and 200 day moving averages.     

Kaynes Technology shares have gained 173% this year.  

Kaynes Technology is infusing funds for future business expansion plans of Kemsys, the firm said in a communication to bourses. The business of wholly owned subsidiary is in main line with the business of the company. 

Kaynes Technology said Ramesh Kannan, Savitha Ramesh, (Promoters & Directors of the Company) and Premita Ramesh (Relative of Promoters) are Directors in Kemys and represent the company in the board of Kemsys.  

Shares of Kaynes Technology made their market debut on November 22, 2022. The Mysore-based firm made a stellar debut on stock exchanges. Kaynes Technology listed at Rs 775 against the issue price of Rs 559-587 on BSE.  On NSE, the stock listed at Rs 778, a 32.5 percent premium to the issue price. 

Kemsys Technologies is engaged in the business of information technology, engineering services, solutions providers and other related services.  

Kaynes Technologies India is primarily engaged in Design and Manufacturing of advanced electronic modules and solutions catering to a wide range of industries. 

 

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