General Atlantic-backed KFin Technologies has filed preliminary papers with the Securities and Exchange Board of India (Sebi) to raise Rs 2,400 crore through an initial public offering (IPO). The financial services platform’s equity shares are proposed to be listed on the BSE as well as the National Stock Exchange (NSE). Here’s the major points to know about the proposed issue:
Issue Composition
The public offer will not see any fresh equity offload as it is entirely as offer-for-sale by promoter General Atlantic Singapore Fund, according to the draft red herring prospectus (DRHP).
Fundraising Target
According to the preliminary papers, leading global private equity investor KFin Technologies, which is majority-owned by funds managed by General Atlantic, plans to raise Rs 2,400 crore through an initial public offering.
The Proceeds
The company will not get any amount from the offer as the proceeds will go to the promoter selling shares.
Offer Managers
ICICI Securities, Kotak Mahindra Capital Company, JP Morgan India, IIFL Securities and Jefferies India are the book running lead managers to the issue.
The Company
KFin provides services to asset managers and corporate issuers across asset classes in India. It also provides solutions, including transaction originating and processing for mutual funds and private retirement schemes in Malaysia, Philippines and Hong Kong.
General Atlantic holds a 74.94 per cent stake in the company. Last year, Kotak Mahindra Bank had acquired 9.98 per cent stake in the company.
Based on the number of AMC clients serviced as on January 31, KFin is India’s largest investor solutions provider to mutual funds in the country. The firm provides services to 25 out of 42 AMCs in India and has about 60 per cent market share.
“The company serves the mission-critical needs of asset managers with clients spanning mutual funds, AIFs (alternative investments), pension, wealth managers and corporates in India and abroad. The company provides SaaS-based end-to-end transaction management, channel management, compliance solutions, data analytics and various other digital services to asset managers across segments, as well as outsourcing services for global players,” according to the company’s website.
Its Financials
For the nine months ended December, KFin posted revenues from operations at Rs 458 crore and a net profit of Rs 97.6 crore, representing a year-on-year growth of 35 per cent and 313 per cent, respectively. Its net profit during the period rose to Rs 97.70 crore from Rs 23.60 crore during the previous year.
KFin Technologies’ Revenue for the financial year 2020-21 stood at Rs 481.14 crore, up from Rs 449.87 crore the previous year. The company’s net loss for the year stood at Rs 64.51 crore, compared with a profit of Rs 4.52 crore the previous year, according to the draft red herring prospectus.
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