KFin Technologies Limited IPO

 KFin Technologies Limited IPO

KFin Technologies Limited
KFIN Technologies Limited (KFin), a financial services provider located in Hyderabad, has filed a draught red herring prospectus (DHRP) with the markets regulator SEBI in order to raise Rs 24,00 crore through an initial public offering. General Atlantic Singapore Fund Pte Ltd is launching an initial public offering (IPO) of up to Rs 2400 crore in equity shares.
KFin Technologies Limited Overview
Kfin Technologies is a leading technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem, including asset managers and corporate issuers, such as omni-channel transaction origination and processing, channel management, which is mapping of mutual fund schemes of AMCs to distributors selected by the AMCs and related distributor management, including brokerage computation and channel servicing which includes brokerage pay-out, query solution and GST compliance assistance, customer onboarding with integrated KYC, unit allocation and redemption, reporting and compliance checks on a real time basis.
It has an end-to-end transaction management platform across multiple asset classes such as mutual fund, direct stock investments, alternate investment funds, wealth and pension across India, Malaysia, Philippines and Hong Kong
It 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 agencies (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 Philippines and Hong Kong.
The firm provides services to 25 out of 42 AMCs in India representing 60% of market share based on the number of AMC clients. The firm has also signed two new AMCs that are yet to launch operations.
Why should invest in the KFin Technologies Limited IPO?
Top reasons to apply for the KFin Technologies Limited IPO
  • In India, KFin services 270 funds from 157 asset managers, accounting for 32% of the market in terms of the number of alternative investment funds (AIFs) served.
  • KFin Technologies are the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, alternative investment funds (“AIFs”), wealth managers and pension as well as corporate issuers in India, besides servicing overseas clients in South East Asia and Hong Kong.
IPO Objectives
  • To carry out the Offer for Sale of up to Equity Shares aggregating to Rs. 2,400 crores by the Promoter Selling Shareholder
  • Achieve the benefits of listing the Equity Shares on the Stock Exchanges

Pros & Cons

According to a CRISIL assessment, one of India’s two top investment solution providers.Any decrease in the company’s client’s average assets under management can have a major influence on the company’s income and earnings.
A diverse multi-asset servicing platform that might profit from expansion in India and Southeast Asia’s huge markets.Disruptions of services may occur due to general factors like unavailability of raw materials, fluctuation of demands, interference in the supply chain, etc.
Around 43% market share in India’s issuer solutions arena, depending on the market capitalization of NSE 500 to businesses.Any deterioration in maintaining and enhancing the awareness of the brands can lead to financial damages
Through domestic mutual fund solutions, the company’s total assets under the management of mutual fund clients grew at a CAGR of 22% from March 2018 to December 2021.The firm intends to extend its platform and services, which may divert management’s focus and/or result in significant shareholder dilution.

Financial Highlights

Profit / ( loss ) In the Period / Year ( In Crores )56.594.5364.50
Profit Margin12.82%1.01%13.41%
Gross Margin48.73%51.44%59.20%
Operating EBITDA Margin30.25%32.82%41.09%
Asset Turnover ratio (x)4.623.473.01
Free cash flow ( In Rs Crores )77.2889.16165.344
Free cash flow conversion from operating EBITDA57.90%60.40%83.64%
Period on Period revenue growth1.956.95
Capital expenditure as a % of total income8.141.666.17
EBITDA to EBIT excluding goodwill amortization89.488.789.89
KFin Technologies Limited IPO Important Dates
  • IPO Open Date:Dec 19, 2022
  • IPO Close Date:Dec 21, 2022
  • Allotment Date:Dec 26, 2022
  • Initiation of Refunds:Dec 27, 2022
  • Credit of shares to Demat Account:Dec 28, 2022
  • Ipo Listing Date:Dec 29, 2022
  • UPI Mandate Expiry Date:Dec 21, 2022
Subscription Details
  •     Open Date- 19 Dec
  •     Close Date- 21 Dec
  •     Lot Size- 40
  •     IPO Size- ₹ 2,400 Cr
  •     IPO Price Range- ₹ 347 to ₹366/share
  •     Min Investmen- t₹ 13,880
  •     Listing Exchange- BSE, NSE
  •     Basis of Allotment- 26 Dec
  •     Refunds- 27 Dec
  •     Credit to Demat Account- 28 Dec
  •     Listing Date- 29 Dec
Demat Account
How to apply for KFin Technologies Limited IPO?
  •     Link your bank account to a UPI ID.
  •     Register your UPI id with your Demat account.
  •     Subscribe for KFin Technologies Limited IPO and approve the payment on your UPI ID.