Market regulator SEBI approved kfin technologies IPO. The company filed DRHP Dated March 31, 2022, to float its IPO of INR 2400 crore. The offer consists of only an offer for sale (OFS) with a face value of INR 10 for each equity share. The promoter GENERAL ATLANTIC SINGAPORE FUND PTE. LTD. is offloading its stakes in the company.
Utilization of Net Proceeds from Kfin technologies private limited IPO
Kfin technologies private limited will not receive any amount from the offer for sale. However, the company will achieve the benefits of listing Equity Shares on the Stock Exchanges. It will enhance its brand image and will provide liquidity for its equity shares.
What does kfin technologies do?
Kfintech is a SaaS-based end-to-end transaction management, channel management, compliance solutions, and data analytics provider to asset managers across segments.
The company serves asset managers with clients including mutual funds, alternative investments, pensions, wealth managers, and corporates in India and abroad. In layman’s terms, we know Kfintech as a registrar for IPOs.
- The company is a tech expert in the asset management industry and provides hyperscale transaction management, big data solutions, transformative platforming, and pureplay financial and technical services.
- KFin has become the de facto choice for new AMCs, AIFs, and Corporates, chosen as the partner for several newly launched AMCs and IPOs.
- KFin is also expanding in the insurance transaction processing and fund administration segment of the market.
- Largest investor solutions provider to Indian mutual funds, based on the number of AMC clients serviced.
- The company is one of the two operating central record-keeping agencies (“CRAs”) for the National Pension System (“NPS”) in India
Kfin technologies private limited promoters and management
- General Atlantic Singapore Fund Pte. Ltd. is the Promoter of the Company. It holds 125,580,400 Equity Shares aggregating to 74.94% of the equity share capital of the company.
- Mr. Vishwanathan Mavila Nair is the Chairperson and Non-executive Director of the company. He has over 48 years of experience in financial services and advising fintech start-ups.
- Mr. Venkata Satya Naga Sreekanth Nadella is the Whole-time Director and Chief Executive Officer of the company. He has over 20 years of experience in the consulting business. He worked with various well-known companies such as Accenture, IBM, etc.
Kfin technologies private limited financial snapshot
- The company registered a strong revenue from operations. The revenue increased to INR 1624.25 million in FY20 from INR 4498.71 million in FY19. But, Profit for the years has gone down from INR 89.55 million in FY19 to INR 45.23 million in FY20. Also, the company registered a loss of INR 645 million in FY21 due to one-time tax payments as deferred tax.
- However, the company registered strong profit for the nine months ended 31 December 2021 with INR 976.91 million as against INR 236 million for the nine months ended 31 December 2020.
- The return on capital deployed (“ROCE”) is 24.27% during nine months ended December 2021
- The and return on equity (“ROE”) during nine months ended December 2021 is 32.96%
kfin technologies private limited IPO – Valuation Parameters
|All amounts in INR Million |
(Year ended March 31)
|EBITDA Margin (%)||41.24%||36.03%||44.72%|
|Profit After Tax||89.55||45.23||(645.07)|
|PAT Margin (%)||5.51%||1.01%||-13.41%|
|Earnings Per equity Share-Diluted||1.46||0.28||– 4.28|
|Net Cash flow from Operating Activities||632.14||1,014.36||2,046.34|
|Net Debt/Equity Ratio (%)||53.15%||90.96%||71.20%|
|Return on net worth (%)||1.72%||1.10%||-18.62%|
|Net asset value per share (in ₹)||31.31||27.15||22.96|
|Asset Turnover Ratio (%)||4.62||3.47||3.01|
Do you invest in kfin technologies IPO?
- The company is a technology driven omnichannel financial services platform providing services and solutions to the capital markets ecosystem across asset classes.
- KFintech has developed tools and platforms such as eAGM, eVoting to adhere to the highest compliance standards and FINTRAK helps companies monitor insider trading, mitigate risks.
- Experienced management and visionary leadership- Sreekanth Nadella, CEO of the company, has been a pioneer in transforming the organisation into a customer-centric, digitally agile technology solutions provider.
- KFintech has serviced over 100 million key investor accounts, to reach out to 3500+ issuers including banks, PSUs, and mutual funds.
- Expanding operation both in terms of new services/ products and geographically.
- Consistent financial performance – revenue from operation, net cash flow and EBIDTA margin have gone up over the year.
- However, the company needs to reduce debt – the net debt to equity ratio is quite high. Promoter is offloading part of its stake in this IPO.
- Overall, I would like to invest in the company’s IPO looking at the above factors.
kfin technologies private limited IPO Details
|kfin technologies IPO Details||Details|
|Kfin technologies IPO Date||Coming soon|
|Kfin technologies IPO Price band||Coming soon|
|Kfin technologies IPO Allotment date||Coming soon|
|Refunds Initiation date||Coming soon|
|Credit of Shares to Demat Account||Coming soon|
|Listing Date||Coming soon|
|Offer for Sale||INR 2400 Crore|
|Equity Shares outstanding prior to the Offer||167,568,883 Equity Shares|
|Minimum bid (lot size)||Coming soon|
|Face Value||INR 10 per share|
|Listing on||BSE & NSE|
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Kfin technologies head office and lead managers of the IPO
|Contact Details||Lead Managers|
|Selenium, Tower B, Plot No- 31 & 32,|
Hyderabad, Rangareddi – 500032,
Telephone no.: +91 40 7961 5565
|1. ICICI Securities Limited|
2. KOTAK MAHINDRA CAPITAL
3. J.P. Morgan India Private
4. IIFL Securities Limited
5. Jefferies India Private
Kfintech IPO GMP
|Date||Kfintech IPO GMP||IPO Price|