KFin Technologies IPO: 55% subscribed on Day 1, FIIs show strong demand

As per the NSE data, overall the IPO received bids of 1,29,84,840 equity shares — 55% of the total offered size of 2,37,75,215 equity shares.

QIBs portion subscribed 91% of the reserved size with foreign institutional investors (FIIs) bidding for 36,17,360 equity shares — of the total bids received to the tune of 1,18,18,640 equity shares in the category. Investors in the Others category under QIBs bid for 82,01,280 equity shares. No demand was seen from domestic institutional investors and mutual funds. Overall, under the IPO, a total of 1,29,68,300 equity shares are offered for bidding.

Meanwhile, the retail investors’ portion subscribed 26% with bids of 11,06,640 equity shares against the reserved size of 43,22,766 equity shares. However, NIIs portion received dull demand with bids of merely 59,560 equity shares against the offered size of 64,84,149 equity shares. Under NIIs category, high net-worth clients’ bids that amounted to more than ₹10 lakh picked up just 2,960 equity shares, while investors whose bids valued from ₹2 lakh to less than ₹10 lakh, bought 56,600 equity shares on Day 1.

Under the IPO, 75% of the total issue size is reserved for qualified institutional buyers, while 15% will be allocated to non-institutional investors and the remaining 10% will be kept for retail individual investors.

The price band for the IPO is fixed at ₹347 per share and ₹366 per share. The bid lot size is 40 equity shares and multiples thereof. The face value of the equity shares is ₹10 per piece.

KFin Tech’s IPO size is aggregated to ₹1,500 crore, however, since the issue is entirely an offer for sale (OFS) the company will not receive any proceeds. Promoter General Atlantic Singapore is the sole selling shareholder in the IPO.

Before the launch of the IPO, the company had garnered ₹675 crore from major anchor investors.

Companies like ICICI Securities, Kotak Mahindra Capital Company, J.P. Morgan India, IIFL Securities, and Jefferies India are acting as the book-running lead managers for the IPO. While Bigshare Services is the registrar of the offer.

Post the IPO, the equity shares proposed will be listed on the stock exchanges BSE and NSE.

KFin Tech is among the 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 and provide several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines, and Hong Kong.

As of September 30, 2022, the company is servicing 301 funds of 192 asset managers in India — representing 30% market share based on the number of AIFs being serviced, as per the CRISIL report.

In the first six months of FY23, the company’s total income stood at ₹3,537.63 million and net profit at ₹853.45 crore. In FY22, the company’s total income climbed to ₹6,455.64 million from ₹4,861.98 million in FY21, while PAT jumped to ₹1,485.49 million against a loss of ₹645.07 million in FY21.