Semiconductor stock which is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in focus after it acquires a 100 percent stake in a smart meters solution company.
Price Action
With a market capitalization of Rs. 35,026 Crores, the shares of Kaynes Technology India Limited were trading at Rs. 5,472 per equity share, down 1.5 percent from its previous day’s close price of Rs. 5555.30.
What Happened
The Board of Directors of Kaynes Technology India Limited has considered and approved the proposal to acquire 100 percent of Iskraemeco India Private Limited from Iskraemeco Holding Switzerland A.G. and Iskraemeco Merjenje IN Upravljanje Energije.
Kaynes Technology India Limited will acquire an entire 100 percent stake i.e. ~4.30 Crores equity shares of Iskraemeco India Private Limited for a consideration of Rs. 42.99 Crores. Post-acquisition the target company will become a wholly-owned subsidiary of Kaynes Technology India Limited.
Iskraemeco India Private Limited is engaged in the business of supply, installation, operations, and maintenance of smart meters in India, as of FY24 it has a turnover of over Rs. 65.42 Crores. The main objective of the acquisition is to increase the company’s product line and service offerings.
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In addition, Recently Kaynes Holding Pte. Ltd a wholly-owned subsidiary of Kaynes Technology India Limited has executed a joint venture agreement with Sensonic GmbH and other existing shareholders of Sensonic Austria, for the proposed subscription of shares and acquisition of a 54 percent stake by Kaynes Singapore in Sensonic Austria, to expand its portfolio catering to the railway sector.
About the Company
Kaynes Technologies India Limited is an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturer. It has a strong customer base with major players like Hitachi, Siemens, Tonbo Imaging, and many more. As of Q1FY25, it has a strong order book of Rs. 5,038 Crores.
It offers Solutions for Box Build, Printed Circuit Board Assemblies (PCBAs), ODM, Product Engineering, loT Solutions, smart metering technology, smart street lighting, and inverter technology. It also offers conceptual design and product engineering services.
Kaynes Technologies India Limited offers its products and services to major players in the automotive, industrial, nuclear, medical, railway, aerospace and defense, outer space, nuclear, medical, railways, loT, information technology, and other segments.
Semiconductor Business
Kaynes Technology India Limited’s wholly-owned subsidiary Kaynes Semicon Private Limited’s proposal to set up a semiconductor unit at Sanand, Gujarat with an estimated investment of Rs 3,307 Crores was approved by the Union Cabinet on September 2, 2024.
In addition, Kaynes Technologies India Limited is also investing Rs. 2,800 Crores to set up a semiconductor OSAT (Outsourced Semiconductor Assembly and Test) and compound semiconductor facility at Kongara Kalan near Hyderabad.
Financials & Ratios
Its Revenue from operations grew by 70 percent from Rs. 297 Crores in Q1FY24 to Rs. 504 Crores in Q1FY25, accompanied by profits of Rs. 25 Crores to Rs. 51 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 10.5 percent, and a return on capital employed (ROCE) of 14.5 percent. It has reported a debt-to-equity ratio of 0.13.
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Written by: Bharath K.S
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