Shares of KFin Technologies, a technology-driven financial services platform, has made a quiet debut on the domestic stock exchanges by listing at ₹367, a 0.3% premium against its issue price of ₹366 per share on the National Stock Exchange (NSE). On the Bombay Stock Exchange (BSE), the stock listed at ₹369, 0.8% higher than its IPO price.
Post listing, KFin Tech share price declined as much as 3.6% to ₹352.65 on the BSE, while it touched a low of ₹355 on the NSE, down 3% against the issue price. The market capitlisation stood at 5,951 crore with a total combination of more than 21 lakh shares changing hands over the counter on the BSE and the NSE. In comparison, the BSE benchmark Sensex was trading 370 points lower at 60,540 levels, and the NSE Nifty was down 112 points at 18,010.
The muted listing of KFin Technologies was in line with D-Street estimates as weak equity market sentiments and a lukewarm response to its initial public offering (IPO) weighed on stock performance.
The ₹1,500 crore IPO of tech solutions provider to Indian mutual funds was subscribed just 2.59 times, led by qualified institutional buyers (QIB). The quota reserved for QIB was booked 4.17 times, while portions set aside for retail investors and high networth individuals were subscribed 1.36 times and 0.23 times, respectively.
The IPO, which opened between December 19-21, was completely an offer for sale (OFS) by promoter General Atlantic Singapore Fund Pte Ltd. Since the issue was entirely an OFS, the company will not receive any fund proceeds from the IPO. Ahead of the IPO, the financial services platform raised ₹675 crore from anchor investors.
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.
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