Kaynes Tech Shares Dive 12% as Concerns Over Related-Party Disclosures Intensify

Kaynes Technology shares slumped over 12 percent on December 5, marking a sharp decline for the second straight session after fresh concerns emerged regarding inconsistencies in the company’s related-party reporting. Market experts have cautioned investors against attempting to “bottom fish” in the stock amid heightened uncertainty. The stock of the electronics manufacturing services (EMS) company settled at ₹4,365 per share. Earlier in the day, it dropped more than 13 percent to an intraday low of ₹4,311 — its weakest level in almost eight months. With the latest fall, the stock has plunged nearly 17 percent across two sessions since the alleged disclosure mismatches came to light. Allegations and Kaynes Tech’s Response A detailed review highlighted several discrepancies in the related-party declarations made by Kaynes Technology, Kaynes Electronics Manufacturing, and its subsidiary for the financial year 2025. The subsidiary’s filings indicated purchases worth ₹180 crore from Kaynes Electronics Manufacturing — transactions that were not reflected in the latter’s own related-party statements. The subsidiary also reported year-end dues of ₹320 crore to Kaynes Technology and ₹180 crore to Kaynes Electronics Manufacturing, along with receivables of ₹190 crore from Kaynes Technology. These balances did not appear in the corresponding disclosures of either Kaynes Technology or Kaynes Electronics Manufacturing. In a clarification issued on December 5, Kaynes Technology stated that the omissions were unintentional and occurred in its standalone financial statements. The company added that the entries have now been corrected and will be appropriately disclosed going forward. It emphasized that the transactions were already part of the consolidated financial statements for both entities. Kaynes Tech Shares Dive 12% as Concerns Over Related-Party Disclosures Intensify