KFin Technologies shares make a flat market debut

The initial public offering (IPO) of KFin Technologies was subscribed 2.59 times on the last day of offer that closed on Wednesday, December 21, 2022. The issue received bids for 6,14,67,520 shares against 2,37,75,215 shares on offer. The three day public issue’s price range was fixed at ₹347-366 a share.

The category for Qualified Institutional Buyers (QIBs) was subscribed 4.17 times, the portion for Retail Individual Investors (RIIs) received 1.36 times subscription and non-institutional investors 23%.

The financial services platform raised ₹675 crore from anchor investors days before its offer. The company decided to allocate over 1.84 crore equity shares to 44 funds at ₹366 apiece. Goldman Sachs (Singapore) Pte, Morgan Stanley Asia (Singapore) Pte, Copthall Mauritius Investment Ltd, Citigroup Global Markets Mauritius, Pinebridge Global Funds and Pari Washington India Master Fund Ltd are among those who have been allotted shares.

The company’s initial share sale was a pure offer-for-sale (OFS) of up to ₹1,500 crore by its existing promoter General Atlantic Singapore Fund Pte Ltd. The company will not receive any proceeds from the offer, as all of it will go to the promoter.

KFintech is an investor and issuer solutions provider, serving asset managers such as mutual funds, alternative investment funds (AIFs), wealth managers, pension funds and corporate issuers, as well as international clients in Southeast Asia and Hong Kong.

It is the country’s largest investor solutions provider to Indian mutual funds based on the number of asset management company (AMC) clients serviced as of September 2022. The firm provides services to 24 out of 41 AMCs in India, representing 59% market share.

KFin Technologies is majority-owned by funds managed by private equity investor General Atlantic. Kotak Mahindra Bank Limited also owns a 9.98% stake in KFintech, which it acquired in 2021.