Kaynes Technology shares surge 4% as QIP launch aims to raise ₹1,600 crore

Shares of Kaynes Technology rose 4 percent in intra-day trading on Friday, June 20, following the launch of its Qualified Institutional Placement (QIP) issue to raise up to ₹1,600 crore. The semiconductor and electronics systems design and manufacturing company opened its QIP on Thursday, setting a floor price of ₹5,625.75 per share, a marginal 0.3 percent premium over Thursday’s closing price.

The fundraising is being managed by Motilal Oswal Investment Advisors, Nomura, and Axis Capital.

Kaynes Technology India has projected revenue of ₹4,525 crore for FY26, with EBITDA margins expected to improve by 50 basis points to reach 15.6 percent. The company’s confidence is backed by a strong order book and expansion into new business areas.

Jairam Sampath, Whole-Time Director and CFO, underlined the export growth opportunity. “We will have some US major company orders getting executed. We will start doing additionally about ₹200–300 crore of exports. These are US- and Europe-based companies in both aerospace and automotive segments,” Sampath said.

Adding to its global footprint, Kaynes’ subsidiary, Kaynes Semicon Pvt Ltd, recently signed an asset purchase agreement with Japan’s Fujitsu General Electronics Ltd. The deal, valued at 1.59 billion Japanese yen, includes the acquisition of production lines for power modules, further solidifying the company’s expansion into semiconductor manufacturing.

CLSA’s Mixed View: Target Raised but Rating Downgraded

Despite Kaynes’ bullish outlook, brokerage CLSA issued a cautionary note last month. While it raised its price target to ₹6,230 from ₹5,400, it downgraded the stock to ‘Hold’ from ‘Outperform’. The rating adjustment followed the company’s strong Q4 results, marked by improved margins, though the growth figures came in slightly below CLSA’s expectations.

CLSA pointed to increased working capital requirements as a drag on operating cash flow (OCF), though it anticipates this issue will normalise in the coming quarters. The brokerage also noted Kaynes’ strategic focus on emerging segments such as Outsourced Semiconductor Assembly and Test (OSAT) services and bare board manufacturing, which are expected to contribute meaningfully to revenues from the end of FY26.

While CLSA acknowledged the timely execution of these projects could act as catalysts for stock performance, it flagged that the recent sharp rise in stock price warranted some caution, hence the downgrade.

Stock Performance: Gains and Volatility

On Friday, Kaynes Technology’s stock climbed as much as 3.9 percent to ₹5,825.50. The stock remains over 25 percent below its 52-week high of ₹7,824.95, touched in January 2025, and well above its 52-week low of ₹3,729.70, seen in July 2024.

Over the last one year, the stock has advanced more than 45 percent. However, it has lost 5 percent in June so far, following three consecutive months of gains—up 4 percent in May, 21 percent in April, and 14.5 percent in March. Before that, it saw a 13.5 percent decline in February and a steep 35 percent correction in January.

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