Rs 6,597 crore order book: Electronics manufacturer to invest USD 17.7 million in wholly owned subsidiary to expand electronics business by June 2026

Kaynes Technology India Ltd has announced a significant further investment in its wholly-owned subsidiary, Kaynes Holding Pte. Ltd., based in Singapore. The company's board has approved an investment of up to USD 1,77,00,000 to acquire an additional 17,524,752 equity shares of Kaynes Holding at an issue price of USD 1.01 per share. This cash investment aims to expand Kaynes Technology's business presence in electronics system design and manufacturing and to facilitate strategic investments and acquisitions. While Kaynes Holding is a related party due to its wholly-owned subsidiary status, this specific investment is not categorised as a related party transaction. The completion of this acquisition is expected by June 30, 2026.

Kaynes Holding Pte. Ltd., incorporated on June 19, 2024, is a newly established entity with a focus on electronics system design and manufacturing, alongside strategic investments. As of March 31, 2025, its unaudited net worth stood at Rs 65,32,65,485, with no turnover but another income of Rs 41,48,723. Post-investment, Kaynes Technology India Ltd will maintain 100 per cent shareholding in Kaynes Holding, with its number of shares increasing from 1,69,44,745 to 3,44,69,498. The Managing Director, Mr. Ramesh Kunhikannan, and Whole Time Director & CFO, Mr. Jairam Paravastu Sampath, of Kaynes Technology are also directors on the board of Kaynes Holding, representing the parent company's interests.

About the Company

Kaynes Technology India Ltd is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India, having capabilities across the entire spectrum of Electronics System and Design Manufacturing (ESDM) services. It has over three decades of experience in providing Conceptual Design, Process Engineering, Integrated Manufacturing and Life Cycle Support for major players in the Automotive, Industrial, EVs, Aerospace, Outer-space, Strategic electronics, Medical, Railways, Internet of Things (“IoT”), Information Technology (“IT”) and other segments. The company has 16 advanced manufacturing infrastructures to manufacture high-mix and high-value products at variable or flexible volumes across all industry verticals. Apart from this, the company also has service centres in Cochin and Mumbai, catering to railway, aerospace, defence and industrial clients.

Results: The net sales increased by 54 per cent to Rs 637.30 crore, the operating profit increased by 76 per cent to Rs 95.20 crore and the net profit increased by 43 per cent to Rs 81.30 crore in Q4FY25 compared to Q4FY24. The net sales increased by 51 per cent to Rs 1,804.60 crore, the operating profit increased by 62 per cent to Rs 254.20 crore and the net profit increased by 60 per cent to Rs 183.30 crore in FY25 compared to FY24.

Net working capital days stand at 87 as of March 31, 2025, as against 83 days as of March 31, 2024. The company has a market cap of over Rs 40,000 crore and the order book stands at Rs 6,597 crore. The stock is up by 67.77 per cent from its 52-week low of Rs 3,729.70 per share and gave multibagger returns of 295 per cent in 2 years.

Disclaimer: The article is for informational purposes only and not investment advice.