KFin Technologies IPO | Review

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KFin Technologies Limited has come up with an initial public offer (IPO). It will open on December 19-21 at Rs.347-366 a share. The IPO issue size is around Rs.1,500.00 crores. The minimum bid will be for 40 shares and in its multiples thereafter.

Overview

KFin Technologies Limited was incorporated in the year 2017. It is a leading technology-driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem including asset managers and corporate issuers across asset classes in India. Also, it provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, Philippines and Hong Kong.

The company is India’s largest investor solutions provider to Indian mutual funds, based on the number of AMC clients serviced. Moreover, it is the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, AIFs, wealth managers and pension as well as corporate issuers in India. Also, it services 301 funds of 192 asset managers in India. It is one of the three operating central record-keeping agencies (“CRAs”) for the National Pension System (“NPS”) in India. Moreover, it is the largest issuer solutions provider in India based on the number of clients serviced.

Kfin Technologies also offer asset servicing products including a distributor platform, an investor platform, and an online transaction platform together with data analytics. Its technology products, solutions and platforms help clients to focus on their core business functions.

Website – http://www.kfintech.com/

Promoters

General Atlantic Singapore Fund – 74.37%

Promoter Holding

Pre-Issue Shareholding – 74.37%

Post-Issue Shareholding – 49.91%

Strength & Weakness

Strengths	Weaknesses
Strong track record of growth	Significant revenues from a few customers
Diverse multi-asset servicing platform	Depends on Key Managerial Personnel
Unique “platform-as-a-service” business model	Outstanding legal proceedings against company
Deeply entrenched, long-standing client relationships	Subject to periodic inspections by the SEBI and the PFRDA
Diversified and expanding client base	Subject to extensive government regulation
Asset-light business model with a recurring revenue model	Dependent on the strength and recognition of brand and reputation
Experienced management team	Strong competition
Investing in technology solutions and product innovation	Issuer solutions business is affected by seasonality

Customers

Nippon India Mutual Fund	LIC Mutual Fund
Mirae Asset Mutual Fund	UTI Mutual Fund
Axis Mutual Fund	Sundaram Mutual Fund

Competitors

CAMS (Computer Age Management Services)

Link Intime India Private Limited

Bigshare Services Private Limited

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2020	455.26	4.52
31-Mar-2021	486.20	-64.51
31-Mar-2022	645.56	148.55
30-Jun-2022	353.76	85.34

Objects of Issue

1) The company will not receive any proceeds from the Offer and all such proceeds will go to the Promoter Selling Shareholder.

KFin Technologies IPO Lot Size

Application	Lot	Shares	Amount
Retail (Min)	1	40	Rs.14,640
Retail (Max)	13	520	Rs.1,90,320
S-HNI (Min)	14	560	Rs.2,04,960
B-HNI (Max)	69	2,760	Rs.10,10,160

KFin Technologies IPO Details

IPO Opening Date	December 19, 2022
IPO Closing Date	December 21, 2022
Face Value	Rs.10 per Equity Share
IPO Price	Rs.347-366 per share
Market Lot	40 shares
Minimum Order Quantity	40 shares
Listing At	NSE, BSE
No. of shares offered (OFS)	4,09,83,607 shares
Issue Size	Up to Rs.1,500.00 Crore
QIB Shares Offered	75% of the offer
Retail Shares Offered	10% of the offer
NII/HNI Shares Offered	15% of the offer

KFin Technologies IPO Timetable

IPO Date	December 19-21, 2022
Allotment Date	December 26, 2022
Initiation of Refunds	December 27, 2022
Credit of share to Demat a/c	December 28, 2022
IPO Listing Date	December 29, 2022