New Delhi: Cannes Technology India Limited (KTIL) has applied for IPO in the capital market. The integrated electronics manufacturing company, which enables end-to-end and IoT solutions, on Saturday filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). According to the draft Red Herring Prospectus (DRHP), the IPO consists of a fresh issue of equity shares worth Rs 650 crore and an offer for sale of 7.2 crore equity shares (OFS) by a promoter and an existing shareholder.

The OFS includes sale of 3.7 million equity shares by promoter Ramesh Kunhikanan and 3.5 million equity shares by existing shareholder Frennie Firoz Irani. The offer also includes reservation of up to Rs 1.5 crore for membership by eligible employees.

The company may consider another issue of equity shares, which may include rights issue, private placement, preferential offer or any other method up to Rs 130 crore. If such placement is completed, the size of the new issue will be truncated. The amount from the fresh issue of Rs 130 crore will be used for loan repayment and Rs 98.93 crore will be used for capital expenditure on its manufacturing facilities in Mysore and Manesar.

In addition, the company is planning to set up a new facility in Chamarajanagar, Karnataka. For this, it will invest Rs 149.30 crore in its unit Cannes Electronics Manufacturing Private Limited. It will utilize up to Rs 114.74 crore for meeting working capital requirements and general corporate proposals. Mysore-based Kinese Technology is an integrated electronics manufacturing company supporting IoT (Internet of Things) solutions. It has great potential in electronics system design and manufacturing services.