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Kaynes Technology stock zooms 34% on listing day; what should investors do?

Kaynes Technology stock zooms 34% on listing day; what should investors do?

Kaynes Technology stock zoomed 34.07% to Rs 787 from the upper end of their IPO price band of Rs 559 to Rs 587

Kaynes Technology shares listed at Rs 775 on BSE, a 32.03 per cent premium over its IPO issue price of Rs 587 Kaynes Technology shares listed at Rs 775 on BSE, a 32.03 per cent premium over its IPO issue price of Rs 587

Shares of Kaynes Technology rose 34% intraday on their market debut today amid a positive sentiment in the broader market. Kaynes Technology stock zoomed 34.07% to Rs 787 from the upper end of their IPO price band of Rs 559 to Rs 587. At 1:14 pm, the stock was trading 20.48 per cent higher  at Rs 707 on BSE. Compared to the opening price or the market listing price of Rs 775, the stock lost 8.75 per cent or Rs 67.80 on BSE.

Earlier, the stock was listed at Rs 775 on BSE, a 32.03 per cent premium over its IPO issue price of Rs 587. On NSE, the stock was trading at Rs 703.65 in the afternoon session, down 9.64% to the listing price of Rs 778. However, the share was still trading 19.87 percent or Rs 116.65 higher to the IPO price at Rs 703.65 on the NSE. Earlier, the stock made its market debut at Rs 778, up 32.54 per cent on NSE.

The company raised Rs 857.82 crore through the IPO held from November 10 to November 14. The share sale received 34.22 times bids the issue size. The quota reserved for qualified institutional buyer was subscribed 98.47 times. The portion reserved for non-institutional investors was subscribed 21.21 times bids. The employee portion was subscribed 11.89 times while the retail portion saw a subscription of 4.09 times.    

The quota for qualified institutional buyers (QIBs) was subscribed 98.47 times while the category for non-institutional investors saw 21.21 times subscription. The portion for retail individual investors (RIIs) was subscribed 4.09 times and that for employees received bids 11.89 times the issue size. 

The company had reserved half of the offer for qualified institutional buyers, 35 percent for retail investors, and the rest 15 percent for non-institutional investors or high networth individuals.  

Post a strong listing today, here’s a look at what analysts said on the prospects of the stock.

Manoj Kumar Dalmia, Founder and Director, Proficient Equities said, “Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company. The issue has been subscribed 34x , which can give it good listing gains. Syrma SGS, Dixon, and Amber Enterprise are its listed peers. Investors can hold it with mid-term to long-term perspective.” 

Ravi Singhal, CEO, GCL said, "As stocks still looks good for the long-term player, they can keep a target of Rs 1,000 and stop loss of Rs 688. ” 

Ravi Singh, Vice President and head of Research, Share India said, “Kaynes Technology is witnessing listing gains selling at current levels. Investors may book 50 percent positions at current levels and place a stop loss of  Rs 650 levels for remaining positions. However, the stock is a good bet for long-term portfolios.” 

Pravesh Gour, Senior Technical Analyst, Swastika Investmart said, “The firm has debuted at a premium Rs 778 that is 32.54% over its issue price. Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company in India. It provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for major players in various industries. The company has reported strong financial growth, especially in recent years, and its margins have also improved significantly. It has a diversified business and customer profile and robust expansion in the order book.  So, allottees who applied for the public issue for listing premium are advised to maintain a stop loss at Rs 710 and wait for further upside whereas those who have medium to long-term perspective can hold the stock maintaining a stop loss at Rs 680.” 

Published on: Nov 22, 2022, 1:58 PM IST
Posted by: Priya Raghuvanshi, Nov 22, 2022, 1:54 PM IST