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.
The key details of the KFin Technologies Limited IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 19th December 2022 |
| IPO Closing Date | 21st December 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs. 10 per share |
| IPO Price Band | Rs. 347 – Rs. 366 per share |
| IPO Size | Rs. 1,500 crores (4,09,83,607 shares) |
| Offer For Sale | Rs. 1,500 crores (4,09,83,607 shares) |
| Fresh Issue | – |
The important dates for the KFin Technologies Limited IPO are highlighted below:
| Event | Date |
| Opening date | 19th December 2022 |
| Closing Date | 21st December 2022 |
| Allotment date | 26th December 2022 |
| Refund Date | 27th December 2022 |
| Share Credit Date | 28th December 2022 |
| Listing Date | 29th December 2022 |
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:
| Category | Details |
| Investment in lots (for retail investors) | Minimum – 1 lotMaximum – 13 lots |
| Shares | Minimum – 40Maximum – 520 |
| Investment amount | Minimum – Rs. 14,640Maximum – Rs. 1,90,320 |
The categories of eligible investors and their share in the IPO are tabled below:
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 75% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 10% |
The key objectives of the IPO are stated below:
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.
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-2022 | 1,026 | 639 | 148 | 9.44 | 9.36 | 29.99% |
| Mar-2021 | 923 | 481 | -64 | -4.28 | -4.28 | -17.07% |
| Mar-2020 | 868 | 450 | 4 | 0.28 | 0.28 | 0.97% |
(Source: RHP)
Some of the key strengths of KFin Technologies Limited that investors can take note of are:
| Category | Details |
| 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 team | The company’s management team is quite experienced and is backed by a strong board and shareholders. |
Here are some of the risks that investors of KFin Technologies Limited should know:
| Category | Details |
| Business viability and profitability | The 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. |
| Promoters | The 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. |
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.
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.
Investors can invest in this IPO through the Fisdom app.
KFin Technologies IPO is a book-building IPO and has a price band of Rs. 347 to Rs. 366.
KFin Technologies caters to 60% of the market share by providing services to 25 out of 42 AMCs in India.
The revenue growth of KFin technologies in the period of FY 20 to FY 22 is approximately 19.16%.
KFin Technologies has an overseas presence in South East Asian Countries like Hong Kong, Malaysia, Philippines along with other countries like Oman and Maldives.
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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