KFin Technologies, Elin Electronics IPOs to open next week; ₹2,000 cr at stake

The primary market continues to see a flurry of new initial public offerings (IPOs) as two more companies are set to hit Dalal-Street next week to raise nearly ₹2,000 crore via public listing of shares. Earlier this week, Sula Vineyards, the country’s largest wine producer and seller, financial services provider Aban Holdings, and automobile services provider Landmark Cars launched their IPOs to raise ₹1,850 crore through the primary market.

In the upcoming week, General Atlantic Singapore Fund-backed financial services platform KFin Technologies will launch its IPO on December 19, whereas electronics manufacturing services firm Elin Electronics will open its issue on December 20. While KFin Technologies plans to raise ₹1,500 crore, Elin Electronics aims to garner ₹475 crore through the IPO.

Here’s all you need to know about IPOs opening in the next week:

KFin Technologies to raise ₹1,500 cr via IPO

The ₹1,500 crore IPO of financial services firm KFin Technologies will open on December 19 and close on December 21. The issue is completely an offer for sale (OFS) by promoter General Atlantic Singapore Fund Pte Ltd, which means the company will not receive fund proceeds from the IPO.

As per the offer document filed with SEBI, KFin has a total of 13 shareholders, led by the promoter, General Atlantic Singapore Fund, which owns a 72.51% stake in the company. Among others, Compar Estates and Agencies owns a 10.86% stake, followed by Kotak Mahindra, which holds 9.86% shares in the company.

The price band of the offer has been fixed at ₹347 to ₹366 per equity share. Investors can make a bid for a minimum of 40 equity shares and in multiples of 40 equity shares thereafter. This means the retail-individual investor can apply for a maximum of 13 lots or 520 shares worth ₹190,320.

The company has reserved 75% of the IPO for qualified institutional buyers, 15% for high networth individuals (HNIs), and 10% for retail investors.

ICICI Securities Limited, Kotak Mahindra Capital Company Limited, JP Morgan India Private Limited, IIFL Securities Limited, and Jefferies India Private Limited are the book-running lead managers to the offer.

Established in 2017, KFin Technologies is a leading technology driven financial services platform that provides comprehensive services and solutions to the capital markets ecosystem. The company also offers services to asset managers and corporate issuers across asset classes in India and several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, Philippines, and Hong Kong.

For the first six-month of the current fiscal (H1 FY23), the company reported 26% growth in profit at ₹85.34 crore, while revenue increased 20% to ₹348.7 crore over the same period last year.

Elin Electronics cuts IPO size to ₹475 crore

The three-day IPO of electronics manufacturing services (EMS) provider Elin Electronics will open from December 20-22. The price band for the issue is ₹234-₹247 per share and the lot size is 60 shares. A retail-individual investor can apply for a maximum of 13 lots or 780 shares worth ₹192,660. 

The company has cut its IPO size to ₹475 crore from ₹760 crore filed with SEBI earlier. The issue comprises a fresh issue of ₹175 crore and an offer for sale of up to ₹300 crore. 

The company intends to use ₹88 crore raised from fresh issue of equity shares to repay debt while ₹37.59 crore will be utilised for capital expenditure to upgrade and expand facilities at Ghaziabad in Uttar Pradesh and Goa. As of September 2022, the company had net debt of ₹102.42 crore.

Formed in 1969, Elin Electronics is a leading electronics manufacturer of end-to end product solutions for major brands of lighting, fans, and small/ kitchen appliances in India. It offers electronic manufacturing Services (EMS), including universal and Induction Motors, tools, moulds, dies and domestic kitchen appliances, personal care products, lighting products and automotive components. The key products in its EMS business vertical include LED lighting, fans and switches, small appliances, fractional horsepower and other EMS products.

For the financial year 2021-22 (FY22), the company reported net profit of ₹39.15 crore as against ₹34.86 crore in the previous fiscal. The revenue grew to ₹1,093.75 crore versus ₹862.38 crore a year ago.