Kaynes Technology India Limited (KTIL) has received capital markets regulator Sebi’s go ahead to raise funds through an Initial Public Offering (IPO).
The IPO consists of a fresh issue of equity shares aggregating to Rs 650 crore, and an Offer For Sale (OFS) of up to 72 lakh equity shares by a promoter and an existing shareholder, according to the Draft Red Herring Prospectus (DRHP).
The OFS comprises sale of up to 37 lakh equity shares by promoter Ramesh Kunhikannan and up to 35 lakh equity shares by existing shareholder Freny Firoze Irani.
The company, which filed preliminary IPO papers with Sebi in April, obtained its observations letter on October 6, an update with the regulator showed on Monday.
In Sebi’s parlance, the observation implies its go ahead to launch IPO.
Going by the draft papers, proceeds from the fresh issue worth Rs 130 crore will be used to repay debt and Rs 98.93 crore will be utilised for funding capital expenditure for its manufacturing facilities at Mysore
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