Home / Business and Economy / Kaynes Tech Stock Plummets Amid Disclosure Woes
Kaynes Tech Stock Plummets Amid Disclosure Woes
5 Dec
Summary
- Brokerage flagged inconsistencies in Kaynes Technology's disclosures.
- Subsidiary Iskraemeco's transactions omitted from parent company filings.
- Kaynes shares saw a 950% surge before a recent significant drop.
Shares of electronics maker Kaynes Technology experienced a significant 6% decline on Thursday, following concerns raised by Kotak Institutional Equities regarding the company's financial reporting. The brokerage identified apparent inconsistencies in the disclosures of related-party transactions between Kaynes Technology and its subsidiaries for the 2024-25 fiscal year.
These discrepancies reportedly involve transactions by subsidiary Iskraemeco, which were not reflected in the disclosures of Kaynes Technology or Kaynes Electronics Manufacturing. Further issues were noted regarding Iskraemeco's current receivables, with a substantial portion outstanding for over a year and due from its parent company. The report also mentioned ambiguous accounting for goodwill and intangible assets.
This stock market development follows a remarkable surge, with Kaynes shares climbing approximately 950% from their November 2022 listing until January 2025. However, since that peak, the stock has seen a considerable correction, dropping nearly 39% by Thursday.
