Latest news with #SemiconductorAssembly
Mint
9 hours ago
- Business
- Mint
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. 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. 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.
Mint
10 hours ago
- Business
- Mint
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. 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. 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. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
India.com
08-06-2025
- Business
- India.com
Ratan Tata's Tata Group signs massive semiconductor deal with government company, Noel Tata now plans to..., Name is...
Ratan Tata (File) Bharat Electronics Limited signs deal with Tata Group: In a significant development months after Ratan Tata's death, Tata Electronics, under the leadership of Noel Tata recently announced that it has inked a pact with Bharat Electronics Limited (BEL) to boost the development of indigenous electronics and semiconductor solutions. The significant development was marked by the signing of the Memorandum of Understanding (MoU) between the two companies, helping the country take a significant step forward for semiconductor solution. Here are all the details you need to know about the massive deal between Tata Group's Tata Electronics and government company BEL. Under the recent agreement, Tata Electronics and BEL will be jointly exploring end-to-end solutions to meet domestic requirements, a report by PTI news agency quoted their release as saying. About Bharat Electronics Limited (BEL) For those unversed, BEL is a Navratna PSU under the Indian Defence Ministry, specialises in design, development, and manufacture of advanced electronics systems. The recently signed MOU was signed between Randhir Thakur, CEO and Managing Director of Tata Electronics, and Manoj Jain, Chairman and Managing Director of BEL, at Bombay House, Tata Group's headquarters in Mumbai on June 5, 2025. Tata Electronics and BEL plan to identify Semiconductor Fabrication As part of the agreement, Tata Electronics and BEL will explore collaboration opportunities to identify Semiconductor Fabrication (fab), Outsourced Semiconductor Assembly and Test (OSAT), and design services solutions from Tata Electronics based on the current and future requirements of BEL, including Microcontrollers (MCUs), Systems-on-Chip (SoCs), Monolithic Microwave Integrated Circuits (MMICs), and other processors. As per the PTI report, the two sides are also planning to develop optimum manufacturing solutions for BEL's products through knowledge sharing, best practices, and other resources. About Tata Electronics Pvt. Ltd Established in 2020, Tata Electronics Pvt. Ltd. is a prominent global player in the electronics manufacturing industry. As per the official website of the company, Tata Electronics is helping India in its semiconductor needs with its fast-emerging capabilities in Electronics Manufacturing Services, Semiconductor Assembly & Test, Semiconductor Foundry, and Design Services. (With inputs from agencies)
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Business Standard
06-06-2025
- Business
- Business Standard
Tata Electronics, BEL sign MoU to develop local semiconductor solutions
Tata Electronics has signed a memorandum of understanding (MoU) with Bharat Electronics Limited (BEL) to jointly develop electronics and semiconductor solutions, the company announced on Friday. The agreement with BEL, a Navratna public sector undertaking under the Ministry of Defence, aims to deliver end-to-end solutions that meet domestic requirements. The MoU was signed in Mumbai on June 5. Focus on fab, OSAT and design services As part of the collaboration, the two companies will explore joint efforts in semiconductor manufacturing and associated services. This includes Semiconductor Fabrication (Fab), Outsourced Semiconductor Assembly and Test (OSAT), and chip design services offered by Tata Electronics, aligned with BEL's current and future product needs. The companies will focus on components such as microcontrollers (MCUs), systems-on-chip (SoCs), monolithic microwave integrated circuits (MMICs), and other processors. Tata Electronics said the two firms also plan to jointly develop manufacturing solutions for BEL's portfolio by sharing technical resources, knowledge and best practices. Strategic timing for BEL The MoU comes a day after BEL announced orders worth ₹2,323 crore from Mazagon Dock Shipbuilders Ltd (MDL) for base and depot spares for missile systems on Indian Naval ships. On June 4, the defence electronics firm also disclosed ₹537 crore in fresh orders, in addition to those announced on May 16. BEL Q4 results For the fourth quarter of FY25, BEL posted a 15 per cent year-on-year increase in net profit to ₹2,127 crore, up from ₹1,796.67 crore in the same period last year. Revenue from operations rose 6 per cent to ₹9,149.59 crore compared to ₹8,564.08 crore in Q4 FY24. Total expenses rose slightly by 1.2 per cent to ₹6,476.97 crore in the March quarter, up from ₹6,399.44 crore in the year-ago period. Shares of BEL closed at ₹390.70 apiece on the BSE on Friday.
