Kaynes Tech stock falls 9% on heavy volumes despite company's clarification

Till 01:31 PM on Wednesday; a combined 10.33 million equity shares representing 15.4 per cent of total equity of Kaynes Technology changed hands on the NSE and BSE.

Kaynes Technology India share price today

 

Shares of Kaynes Technology India (Kaynes) slipped 9 per cent to ₹3,960 on the BSE in Wednesday’s intra-day trade despite the company’s clarification on a report published by Kotak Institutional Equities dated December 3, 2025.

 

The company also said it has not entered into any negotiations to change its statutory auditor, refuting a recent media report that suggested the company was considering such a move.

 

CLICK HERE FOR CLARIFICATION

 

On Tuesday, the stock had bounced back 21 per cent to ₹4,500, from its intra-day low of ₹3,713.35, also its 52-week low on the BSE.

 

 

In the past six trading days, the market price of Kaynes tanked 27 per cent from ₹5,411.70. It has been nearly halved from its 52-week high of ₹7,824.95 touched on January 1, 2025.

 

At 01:31 PM; Kaynes Technology India quoting 8 per cent lower at ₹3,980.40, as compared to 0.05 per cent decline in the BSE Sensex. As many as a combined 10.33 million equity shares representing 15.4 per cent of total equity of the company changed hands on the NSE and BSE.  CATCH STOCK MARKET UPDATES TODAY LIVE

Why is Kaynes Technology stock price under pressure?

 

Kaynes stock has recently taken a hit following concerns around the company’s accounting disclosures which made market participants nervous. For instance, under related party transaction (RPT) disclosures, the company inadvertently failed to report reconciled balances between subsidiary companies, ICICI Securities said.

 

Although the reporting was missed at the company’s end, it seems like a negligence sort of error rather than anything on the governance front. The overall P&L and balance sheet is not misstated. Similarly, post management’s clarification on other issues, it seems sub-par disclosure created misinterpretation rather than management’s malafide intention, the brokerage firm said in the company update.

 

Overall, Kaynes is expected to incur huge capex which if not managed properly might pose risk and might deteriorate the company’s financial health. Along-side, improvement in working capital days needs to be closely watched out. The brokerage firm said they are factoring the capex requirement for the 2nd phase in FY27 & FY28 while the larger business benefits of the same are likely to be reflected post FY28.

 

Analysts at ICICI Securities view the issues highlighted as largely disclosure-related discrepancies and instances of misinterpretation arising from limited clarity in certain disclosures. The brokerage firm does not see any indication of fraudulent intent, and these matters are not expected to have a financial impact. However, they do underscore the need for improved transparency and consistency in the company’s reporting practices as these factors create trust issues and impact the multiple stock commands.  ALSO READ | Hotel room rates in metro cities to rise, tier-2 prices may soften: YES Sec

Motilal Oswal MF sold Kaynes’ 817,623 shares on November 18, 2025

 

Motilal Oswal Mutual Fund (MF) had sold 817,623 equity shares representing 1.2 per cent of total equity of Kaynes on November 18, 2025 on the NSE (352,744 shares) and BSE (464,879 shares). The names of the buyers were not disclosed. CLICK HERE FOR DETAILS

 

As on September 30, 2025, Motilal MF held 3.91 million equity shares or 5.84 per cent holding in Kaynes, the shareholding pattern data shows. Motilal MF was the largest public shareholder in the company, data shows.

 

Axis Mutual Fund Trustee Limited A/C Axis Mutual Fund A/C Axis Small Cap Fund (3.54 per cent), HSBC Midcap Fund (2.43 per cent), Nippon Life India Trustee Ltd-A/C Nippon India Small Cap Fund (2.22 per cent) and Invesco India Flexi Cap Fund (1.13 per cent) held an over 1 per cent holding in Kaynes.