Categories: Stock Markets

KFin Technologies Limited IPO – Price, Lot size, Open date, GMP & Review

Introduction

It is the season of IPOs with multiple IPOs being launched through 2021 and 2022. We know the name ‘KFin Technologies’ as being featured as registrar for many IPOs. Now it is time for KFin Technologies to take the IPO route itself. 

KFin Technologies Ltd IPO was open for subscription from 19th to 21st December 2022. IPO allotment will be out on 26th December. The issue was subscribed 2.59 times as of the final day of bidding.

Here are all the important details of KFin Technologies Limited IPO, including investment price band, allotment status, GMP, benefits, risks of investing in this IPO, and more.

Read More: Top 5 stocks in financial services and sector overview

IPO Details

The key details of the KFin Technologies Limited IPO are as under. 

  1. IPO Size

The size of the IPO and different categories of the issue are:

CategoryDetails
IPO Opening Date19th December 2022
IPO Closing Date21st December 2022
ListingNSE, BSE
Issue TypeBook Built Issue IPO
Face Value of sharesRs. 10 per share
IPO Price BandRs. 347 – Rs. 366 per share
IPO SizeRs. 1,500 crores (4,09,83,607 shares)
Offer For SaleRs. 1,500 crores (4,09,83,607 shares)
Fresh Issue
  1. IPO Dates

The important dates for the KFin Technologies Limited IPO are highlighted below:

EventDate
Opening date19th December 2022
Closing Date21st December 2022
Allotment date26th December 2022
Refund Date27th December 2022
Share Credit Date28th December 2022
Listing Date29th December 2022
  1. IPO Lot Sizes

Investors can subscribe to the shares of KFin Technologies Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below: 

CategoryDetails
Investment in lots (for retail investors)Minimum – 1 lotMaximum – 13 lots
SharesMinimum – 40Maximum – 520
Investment amountMinimum – Rs. 14,640Maximum – Rs. 1,90,320
  1. IPO Reservation

The categories of eligible investors and their share in the IPO are tabled below:

Category of InvestorReservation Percentage
QIB (Qualified Institutional Buyers)75%
NII (Non-Institutional Bidders)15%
RII (Retail Individual Investors)10%

KFin Technologies Limited IPO Objectives

The key objectives of the IPO are stated below:

  1. The entire IPO is an Offer for Sale and therefore, the proceeds from the IPO will be received by the promoter offloading their stake.
  2. The other purpose is to get listing benefits by listing the shares on the stock exchanges.

Top things to know about KFin Technologies Limited IPO

KFin Technologies Limited was incorporated in 2017 and has become a leading name in providing technology based financial services. It is engaged in providing solutions and services to asset managers as well as corporates across different asset classes in the country. These services also include transaction origination and mutual fund processing as well as private retirement schemes in countries like Malaysia, Hong Kong, and the Philippines. The company has the merit of becoming the largest investor solution provider to Indian mutual fund houses. As of January 2022, the clientele of KFin technologies has served 270 funds of 157 asset managers in the country. 

Other achievements of KFin Technologies include being one of the only two CRAs (Central Recordkeeping Agencies) in the country for NPS as of January 2022. It is also the only investor and issuer solutions provider offering services to multiple entities like mutual funds, corporates, pension funds, AIFs (Alternative Investment Funds), and wealth managers in India. 

Financials of the company

KFin Technologies Limited financials are given in the table below:

Year Total Assets (Rs. In crores)Operating Revenue (Rs. In crores)Profit after tax (Rs. In crores)Basic EPS(Rs.)Diluted EPS(Rs.)RONW
Mar-20221,0266391489.449.3629.99%
Mar-2021923481-64-4.28-4.28-17.07%
Mar-202086845040.280.280.97%

(Source: RHP)

Strengths of the company

Some of the key strengths of KFin Technologies Limited that investors can take note of are:

CategoryDetails
Business model The company’s business model is asset light coupled with recurring revenues, cash generation, high operating leverage and profitability potential. It is one of the few names in the country that provides end-to-end solutions to its clients.The company has a unique scalable platform that is backed by a strong growth record and is also a defined market leader.The operations of the company are in India and South East Asia. The company also has a long-standing client relationship and also has an increasing client base.
Experienced teamThe company’s management team is quite experienced and is backed by a strong board and shareholders.

Risks of investment

Here are some of the risks that investors of KFin Technologies Limited should know:

CategoryDetails
Business viability and profitabilityThe company has reported negative cash flows in its past performance.Majority of the company’s revenue is concentrated from 5 customers.The company has inadequate insurance coverage Any downward credit rating of the business will be adverse for its bottom line.
PromotersThe promoters of the company are facing ongoing investigations by enforcement agencies They also do not have adequate experience in the industry and the business that the company belongs to.

What is the Grey Market Premium (GMP) of  KFin Technologies Limited?

As per market observers, KFin Technologies Limited IPO attracted a grey market premium of Rs. 2 per shares as of December 22nd, 2022. This means the company’s shares were commanding a marginal premium to the issue price.

Should you apply for KFin Technologies Limited IPO?

KFin Technologies Limited IPO was subscribed 2.59 times on the final day of issue. This company is a leading name as a financial services technology services provider. It has a diverse clientele and is an end-to-end solution provider for different classes of clients ranging from corporates to mutual funds wealth managers, AIFs, etc. The company has a PE ratio that is almost similar to its listed peer CAMS and is fully priced. Investors can, therefore, invest in this IPO for listing gains as well as include the company in the long-term investment portfolio.   

How to apply for KFin Technologies Limited IPO?

Investors can invest in this IPO through the Fisdom app.

KFin Technologies IPO FAQs

1. Is the KFin Technologies IPO fixed price IPO?

KFin Technologies IPO is a book-building IPO and has a price band of Rs. 347 to Rs. 366.

2. What is the market share of KFin Technologies Limited in terms of AMCs catered by them?

KFin Technologies caters to 60% of the market share by providing services to 25 out of 42 AMCs in India.

3. What is the revenue growth percentage of KFin Technologies Limited in the past  3 years?

The revenue growth of KFin technologies in the period of FY 20 to FY 22 is approximately 19.16%.

4. Where is the overseas presence of KFin Technologies Limited?

KFin Technologies has an overseas presence in South East Asian Countries like Hong Kong, Malaysia, Philippines along with other countries like Oman and Maldives.

5. What is the issue size and the listing date for KFin Technologies IPO?

The issue size of KFin Technologies is Rs. 1,500 crores and its shares will be listed on NSE and BSE on 29th December 2022.

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Marisha Bhatt

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