Kaynes Technology Stock Surges After Bulk Deal, Market Eyes Recovery
Kaynes Technology shares rise after Smallcap World Fund buys 4.46L shares. Market cap jumps; investors watch for recovery.
image for illustrative purpose
On December 12, Kaynes Technology’s stock witnessed a gain for the second day in a row which was mainly supported by the purchase of shares in bulk. Besides, some brokerage companies also changed their minds positively regarding the stock which had been pressured for a time now.
In the transaction of the bulk deal, the Smallcap World Fund Inc purchased 4,46,921 shares of Kaynes Technology at an average price of Rs 4,206.38 per share on the NSE. The total value of the deal amounted to around Rs 188 crore.
On Friday, the share price of the company closed at Rs 4,267, up 5.51%, which increased Kaynes Technology’s market cap to Rs 28,603 crore. In spite of the rally, the stock has undergone a 44% drop during the year and lost 33% over the last month.
The stock trading activity rates on the BSE were still strong with 7.59 lakh shares being traded, which amounted to a turnover of Rs 320.07 crore. The stock had recently reached a low point for the year at Rs 3,713.75 on December 9.
This drop was preceded by a steep decline of 30% over four trading days early in the month. The selling pressure was prompted by Kotak Institutional Equities which expressed concern over the inconsistency of disclosures related to parties for FY2025. Kotak pointed out that there were differences in the financial disclosures of Kaynes Technology, Kaynes Electronics Manufacturing, and its subsidiary Iskraemeco. After the exposure, the stock fell to Rs 4,971.50 on December 4, which was 6.3% down.
While analysts pointed out that the recent purchase of shares in bulk and the changing of the brokerage recommendations to positive might give the stock temporary support, the stock is still being watched closely due to the previously mentioned disclosure concerns.
