KFin Technologies, which is backed by General Atlantic, has filed preliminary paperwork with the capital market regulator Securities and Exchange Board of India (SEBI) to raise Rs 2,400 crore through an Initial Public Offering (IPO).
Since the public offering is purely an offer-for-sale (OFS) by promoter General Atlantic Singapore Fund, no new equity will be offloaded. The equity shares have a face value of Rs 10 apiece. The shares will be listed on the BSE and NSE, respectively.
The firm will get no money from the offer since the proceeds will go to the promoter selling the stock.
ICICI Securities, JP Morgan India, IIFL Securities, Kotak Mahindra Capital Company, and Jefferies India are the book running lead managers to the issue.
KFin reported revenues from operations of Rs 458 crore and a net profit of Rs 97.6 crore for the nine months ended December, indicating year-on-year increase of 35 percent and 313 percent, respectively. Its net profit increased to Rs 97.70 crore over the year, up from Rs 23.60 crore the previous year.
According to the draught red herring prospectus, the company's net loss for the year was Rs 64.51 crore, compared to a profit of Rs 4.52 crore the previous year.
Hyderabad-based KFIN Technologies Limited is a technology-driven financial services platform providing comprehensive services to the capital market ecosystem. General Atlantic, which holds a stake of 74.94 percent is the majority share holder of the firm. Kotak Mahindra Bank Limited acquired a 9.98 percent stake in KFin Technologies in 2021.
KFin serves 270 funds of 157 asset managers in India, representing 32% market share based on the number of AIFs being serviced. Kfin is one of the two operating Central Record-keeping Rgencies (CRA) for the National Pension System (NPS). The firm also has 16 AMC clients in Malaysia out of 60 in addition to three clients in the Philippines and Hong Kong.
Based on the number of AMC clients served as of January 31, 2022, KFin Technologies is India's leading investor solutions supplier to Indian mutual funds. The firm provides services to 25 out of 42 AMCs in India representing 60% of the market share based on the number of AMC clients. The firm has also signed two new AMCs that are yet to launch operations.