Kaynes Semicon Pvt Ltd signs technology provision agreement with ISO Technology Sdn. Bhd.

Kaynes Semicon Private Limited ("Kaynes Semicon"), a wholly owned subsidiary of Kaynes Technology India Limited ("KTIL"), has today, signed a binding Technology Provision Agreement ("TPA") with ISO Technology Sdn. Bhd. ("ISO").

ISO is a wholly owned subsidiary of Globetronics Technology Bhd ("GTB") and has carried out OSAT Business since 1994 in Malaysia.

Kaynes Semicon, incorporated on May 15, 2023, intends to set up outsourced semiconductor assembly and testing business ("OSAT Business") in India.

The TPA has been executed between Kaynes Semicon and ISO for the provision of certain services by ISO to Kaynes Semicon in respect of the OSAT Business of Kaynes Semicon.

ISO is required to provide certain services including: (i) providing target customer segments; (ii) providing indicative packaging; (iii) sharing cost structure and pricing of ISO with Kaynes Semicon; and (iv) providing access to ISO's designated area along with access to ISO's existing machinery.

The TPA provides for a payment of up to USD 75,90,000 by Kaynes Semicon to ISO depending on the conditionalities set out under the TPA. A portion of these proceeds may be invested by ISO into the securities of Kaynes Semicon, subject to the completion of milestones as provided for under the TPA and execution of appropriate agreements between KTIL, Kaynes Semicon and ISO, which will have customary provisions in relation to such investment.

Shares of Kaynes Technology India Limited was last trading in BSE at Rs. 3077.80 as compared to the previous close of Rs. 3215.70. The total number of shares traded during the day was 43303 in over 6652 trades.

The stock hit an intraday high of Rs. 3239.95 and intraday low of 2903.75. The net turnover during the day was Rs. 131708469.00.

Source : Equity Bulls

Keywords

KaynesTechnologyIndia IndustrialProducts INE918Z01012 KaynesSemicon TPA ISOTechnologySdnBhd