Kaynes Tech Share Price Tanks Over 9 Per Cent After Company Gets Notice From Sebi

Kaynes Technology's share price declined over 9 per cent to hit an intraday low of Rs 3,898 apiece on the NSE on March 12. The stock declined after the company received a show-cause notice from the Securities and Exchange Board of India (SEBI).

Kaynes Technology informed the exchanges on March 11 that Ramesh Kunhikannan the Managing Director of Kaynes Technology India Ltd has received a show-cause notice dated March 10 from the Sebi. The company said in the release that the market regulator has alleged suspected violations in the maintenance of Structured Digital Database (SDD) pertaining to financial results for the period ended March 31, 2023, as per Sebi’s (Prohibition of Insider Trading) Regulations, 2015.

The company added that it is currently reviewing the contents of the notice and will take all appropriate legal and procedural steps. Kaynes Technology also said that it will also provide a timely response to the Sebi. The company emphasised that it remains committed to fully cooperating with the market regulator to resolve the matter in accordance with the applicable legal and regulatory framework.

With the decline seen on March 12, the stock has fallen for the fourth consecutive session. The stock has closed lower since March 7 and has fallen over 12.54 per cent from Rs 4457.05 apiece on the NSE.

The company’s consolidated revenue from operations for the December quarter of FY25 increased by more than 29 per cent to Rs 661.17 crore from Rs 509.29 crore in the December quarter of FY24. The company’s revenue from operations for the quarter ended December 31, 2024, also increased by more than 15 per cent from Rs 572.12 crore in the quarter ended September 30, 2024.

Kaynes Technology’s consolidated profit-after-tax for the third quarter of FY25 grew by over 47 per cent to Rs 66.46 crore from Rs 45.19 crore in the corresponding quarter of the preceding fiscal. In the December quarter of FY25, the company’s profit-after-tax increased by over 10 per cent from Rs 60.2 crore in the September quarter of FY25.

Shares of Kaynes Technology have gained over 38 per cent in a year on the NSE. On a year-to-date basis, the stock has fallen more than 43 per cent and in six months the stock has declined nearly 20 per cent. In a month the stock has slipped over 1 per cent. At the time of writing shares of Kaynes Technology made a slight recovery from the day’s low and traded at Rs 4,239.15 apiece down by 1.22 per cent on the NSE.