KFin Technologies Ltd IPO

Upcoming

IPO Synopsis

KFin Technologies, one of the leading registrars in India, filed its preliminary papers with SEBI to raise Rs 2,400 crore via an initial public offering.
The IPO entirely comprises of an offer for sale (OFS) of up to Rs 2,400 crore worth of equity shares by General Atlantic Singapore Fund Pte. Ltd. KFin Technologies is majorly owned by funds managed by General Atlantic, a leading global private equity investor, which has 74.94% stake in the firm.
ICICI Securities, Kotak Mahindra Capital Company, JP Morgan India, IIFL Securities and Jefferies India are the book running lead manager for the issue.

Objective of the Issue

The net proceeds from the issue will be used for
1. To carry out the Offer for Sale of up to Equity Shares aggregating to Rs. 2,400 crores by the Promoter Selling Shareholder 
2. Achieve the benefits of listing the Equity Shares on the Stock Exchanges

About KFin Technologies Ltd

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.

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 481.1 449.9 162.4
EBITDA 217.5 164.0 217.5
PAT -64.5 4.5 9.0
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 346.1 868.4 1021.8
Share Capital 150.8 150.8 165.8
Total Borrowings 346.1 375.4 406.0
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 204.6 101.4 63.2
Net cash from / (used in) investing activities -103.7 93.0 -864.4
Net cash flow from / (used in) financing activities -89.4 -206.0 775.4
Net increase (decrease) in cash and cash equivalents 11.5 -11.6 -25.8


Peer Comparison

Name of the Company Total Revenue Basic EPS Nav Rs. per share PE RoNW%
KFin Technologies Limited 481.14 -4.28 22.96 NA -18.62%
Computer Age Management Services Limited 705.50 42.08 105.73 55.15 39.80%


Key Points

  • Strengths

    1. Scaled platform with strong track record of growth and market leadership
    2. Diversified multi-asset servicing platform is well-positioned to benefit from strong growth across large markets in India and South East Asia
    3. Unique “platform-as-a-service” business model providing comprehensive end-to-end solutions enabled by technology solutions developed in-house
    4. Deeply entrenched, long-standing client relationships with a diversified and expanding client base
    5. Asset-light business model with recurring revenue model, high operating leverage, profitability and cash generation

  • Risks

    1. Significant disruptions in the information technology systems or breaches of data security could adversely affect our business and reputation
    2. It derives a significant portion of our revenues from a few customers and the loss of one or more such clients could adversely affect the business and prospects
    3. There are outstanding legal proceedings involving the firm
    4. The issuer solutions business is affected by seasonality, which could result in fluctuations in our operating results
    5. Failure to obtain, maintain or renew our statutory and regulatory licenses, permits and approvals required to operate our business
     

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the lot size and investment required for the IPO?

The Kfin Technologies IPO market lot size 

What is the price band of the IPO?

The price band of the IPO - yet to be announced

When does the Kfin Technologies IPO issue open and close?

The Kfin Technologies IPO opens on, and the closes on - yet to be announced 

What is the size of Kfin Technologies IPO issue?

The fresh issue entirely comprises of an offer for sale (OFS) of up to Rs 2,400 crore worth of equity shares by General Atlantic Singapore Fund Pte. Ltd.
 

Who are the promoters/key personnels of Kfin Technologies?

Kfin Technologies is promoted by General Atlantic Singapore Fund Pte. Ltd.

What is the allotment date of Kfin Technologies IPO?

The allotment date Kfin Technologies IPO - yet to be announced 

What is the Kfin Technologies IPO’s listing date?

The issue will be listed on - yet to be announced 

Who are the book runners for Kfin Technologies IPO?

ICICI Securities, Kotak Mahindra Capital Company, JP Morgan India, IIFL Securities and Jefferies India are the book running lead managers to the issue.

What is the objective of the issue?

The proceeds will be used:

  • 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
How to apply for the Kfin Technologies IPO?

To apply for the IPO, follow the steps given below

1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

You will receive a mandate notification to block funds in your UPI app
 

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