Kaynes Technologies shares fall 6% as Kotak flags inconsistencies

Shares of the EMS player sank 6.3 percent in trade on December 4, settling at Rs 4,971.50 per share.

Shares of Kaynes Technologies slipped 6 percent on Thursday after Kotak Institutional Equities raised concerns over inconsistencies in the company's related-party disclosures across its standalone entity and key subsidiaries.

In a note, Kotak said it had identified multiple mismatches between the disclosures made by Kaynes Technology, Kaynes Electronics Manufacturing, and its subsidiary Iskraemeco for FY2025.

According to the brokerage, Iskraemeco’s filings show purchases of Rs 180 crore from Kaynes Electronics Manufacturing, but this transaction is not reflected in Kaynes Electronics Manufacturing’s own related-party disclosures.

Iskraemeco also reported year-end payables of Rs 320 crore to Kaynes Technology and Rs 180 crore to Kaynes Electronics Manufacturing, along with receivables of Rs 190 crore from Kaynes Technology.

These balances, Kotak noted, do not appear in the corresponding disclosures of Kaynes Technology or Kaynes Electronics Manufacturing.

Additionally, almost all of Iskraemeco’s current receivables were shown as due from its parent company, with Rs 45.8 crore outstanding for more than a year.

The brokerage said the inconsistencies warrant closer scrutiny, as they raise questions on inter-company transactions and year-end balances within the group.

Shares of the EMS player sank 6.3 percent in trade on December 4, settling at Rs 4,971.50 per share.