Tuesday, Nov 18 — Shares of Kaynes Technology India Ltd declined over 5% in early trade after the expiry of a major shareholder lock-in period, which has released a significant portion of the company’s equity into the market.
According to a note from Nuvama Alternative and Quantitative Research, 11.6 million shares have now become eligible for trading as the one-and-a-half-year and beyond lock-in period ended. The shares freed up for trade represent 20% of Kaynes Technology’s outstanding equity. The end of the lock-in does not imply that these shares will necessarily be sold, but they are now eligible to be traded.
Based on Monday’s closing price, the total value of the shares that have opened for trade is estimated at Rs 7,233 crore.
Recent Quarterly Results
Kaynes Technology reported its September quarter earnings on November 4. The company’s net profit rose 102% to Rs 121.4 crore. Revenue grew 58.4% to Rs 906.2 crore, while EBITDA increased 80.6% to Rs 148 crore. EBITDA margin expanded to 16.3%.
The company’s order book stood at Rs 8,099.4 crore in the September quarter, up from Rs 5,422.8 crore in the same period last year.
Since its IPO at Rs 587 per share, Kaynes Technology has surged nearly 11 times.
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