As Kaynes Technology shares list at premium, should investors buy, sell or hold?

Market


Shares of Kaynes Technology India Ltd on Tuesday listed with a premium of 32.5% at 775 apiece against the issue price of 587, and later touched an intrday high of 787 on the BSE in early trading session.  

Mysore-based Kaynes Technology is a leading end-to-end and IoT (Internet of Things) solutions-enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing services.

“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 a good listing gains. Syrma SGS, Dixon, and Amber Enterprise are its listed peers. Investors can hold it with mid term to long term perspective,” said Manoj kumar Dalmia, Founder and Director, Proficient equities Private limited.

The Initial Public Offering (IPO) of Kaynes Technology India had received 34.16 times subscription. The issue comprised a fresh issue of 530 crore and an offer-for-sale of up to 55,84,664 equity shares. The OFS comprised sale of 20.84 lakh equity shares by promoter Ramesh Kunhikannan and 35 lakh equity shares by existing shareholder Freny Firoze Irani. It had a price range of 559-587 a share.

“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 650 levels for remaining positions. However, the stock is a good bet for long term portfolios,” said Ravi Singh, Vice President and head of Research, Share India.

“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 710 and wait for further upside whereas those who have medium to long-term perspective can hold the stock maintaining a stop loss at 680,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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