KFin Technologies IPO will open for subscription from 19 December 2022. the company aims for an issue size of ₹2,400 Cr through this IPO.
About Company
KFin Technologies is a leading technology-driven financial services platform provider. The company provides comprehensive services and solutions to the capital market ecosystem including mutual funds, alternative investment funds (AIFs), wealth managers, pension fund managers, and corporate issues. KFin Tech provides several investor solutions such as transaction origination and processing for mutual funds and private retirement schemes.
KFin Tech is one of the two leading investor solution providers in India. It provides services to 25 out of 42 Asset Management Companies (AMCs) in India. As of 31 January 2022, it had on-boarded 15 out of the last 20 mutual funds launched in India. In December 2021, the company recorded INR48.51 crores of SIP (Systematic Investment Plan) inflow which translates to a market share of 42.92%, up from 39.01% as on 31 March 2021.
KFin Tech has a noticeable overseas presence as a technology-driven financial services platform provider. Besides India, the company serves in South East Asia, Hong Kong, Malaysia, and the Philippines, among others. In Malaysia, there are 60 AMCs and KFin counts 18 of them among its clients. In addition, there are three clients in the Philippines and Hong Kong and two clients in Singapore as of 31 January 2022.
Basic details about the company
| Full name | KFin Technologies Limited |
| Sector | Finance |
| Industry | Finance-Others |
| Company Website | https://kfintech.com/ |
The objective of the Issue
- To carry out the offer for sale of up to 40,983,607 shares.
- To achieve the benefits of listing the equity shares in the stock exchanges.
Major Competitive strengths
- Experienced management team.
- KFin Tech has a noticeable overseas presence as a technology-driven financial services platform provider.
- The company is India’s largest investor solutions provider to Indian mutual funds, based on several AMC clients serviced.
IPO Timetable
| IPO Opening date | 19 December 2022 |
| IPO Closing | 21 December 2022 |
| Basis of Allotment | 26 December 2022 |
| Initiation Refund | 27 December 2022 |
| Credit to Demat Account | 28 December 2022 |
| Listing Date | 29 December 2022 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹1,500 Cr – 40,983,607 shares |
| Fresh Issue | ₹1,500 Cr – 40,983,607 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹347 to ₹366 per share |
| Lot size | 40 Shares |
| Retail Allocation | 10% |
| Listing Exchange | BSE, NSE |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 40 | ₹14,640 |
| Retail (Max) | 13 | 520 | ₹190,320 |
| S-HNI (Min) | 14 | 560 | ₹204,960 |
| B-HNI (Min) | 69 | 2,760 | ₹1,010,160 |
Reservation Details
| QIB Shares Offered | 75% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 10% |
KFin Technologies IPO Anchor Investors
KFin Technologies IPO Anchor investor bid will end on Dec 21, 2022. A total of 40,983,607 shares are offered to Anchor investors.KFin Technologies IPO Anchor Investor Lock-in Period is Dec 16, 2022, for 50% of equity shares and May 1, 2023, for the remaining portion.
- Anchor Investor Bid Date: Dec 16, 2022
- Anchor Portion Size: Rs.1,500.00 crore (Shares offered * Upper Price)
- Anchor lock-in period end date (50% Shares): Around Feb 6, 2023 (30 Days)
- Anchor lock-in period end date (remaining shares): Around May 1, 2023 (90 Days)
Financial Performance
| FY 2019 | FY 2020 | FY 2021 | 9M FY 2022 | |
| Revenue | 162.4 | 449.9 | 481.1 | 458.7 |
| Expenses | 150.9 | 436.8 | 418.7 | 331.8 |
| Net income | 9.2 | 3.8 | (64.4) | 97.7 |
| Margin (%) | 5.7 | 0.8 | (13.4) | 21.3 |
Valuations & Margins
| FY 2019 | FY 2020 | FY 2021 | 9M FY 2022 | |
| EPS | 1.46 | 0.28 | (4.28) | 6.34 |
| PE ratio | – | – | – | – |
| RONW (%) | 1.72 | 1.10 | (18.62) | 16.56 |
| NAV | 31.31 | 27.15 | 22.96 | 35.21 |
| ROCE (%) | – | – | – | 24.27 |
| EBITDA (%) | 41.24 | 36.03 | 44.72 | 45.08 |
| Debt/Equity | 53.15 | 90.96 | 71.20 | 0.00 |
Company Promoters
- General Atlantic Singapore Fund Pte. Ltd.
Promoter Holding
| Pre Issue Share Holding | 74.37% |
| Post Issue Share Holding | 71.74% |
KFin Technologies IPO Prospectus
Lead Manager(s)
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
- J.P. Morgan India Private Limited
- IIFL Securities Ltd
- Jefferies India Private Limited
IPO Registrar
BIGSHARE SERVICES PRIVATE LIMITED
Office No. S6-2, 6th Floor,
Pinnacle Business Park,
Next to Ahura Centre, Mahakali
Caves Road, Andheri East,
Mumbai – 400 093, Maharashtra
Phone: +91 022 62638200
Email: kfintechipo@bigshareonline.com
Website: www.bigshareonline.com
Contact Details
KFIN TECHNOLOGIES LIMITED
Selenium, Tower B, Plot No- 31 & 32,
Financial District, Nanakramguda, Serilingampally,
Hyderabad, Rangareddi – 500032, Telangana
Phone: +91 40 7961 5565
Email: compliance.corp@kfintech.com
Website: www.kfintech.com
Allotment Status
KFin Technologies IPO allotment will be available on Bigshare Services’ website. Click on Bigshare Services weblink to get allotment status.
Final thoughts
KFin Technologies IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
