KFin Technologies Limited offers a comprehensive range of financial services, including solutions for corporate issuers and asset managers, across asset classes, in the Indian capital markets ecosystem.
They offer a wide range of investor solutions, including transaction origination and processing in various countries like In Malaysia, the Philippines and Hong Kong.
As of September 30, 2022, it served 301 funds of 192 asset managers in India, representing 30% of the market. In India, it is one of three central record-keeping agencies (CRAs) that operate the National Pension System (NPS).
KFIN Technologies Limited Summary
| KFIN TECHNOLOGIES LIMITED | Issue Details |
|---|---|
| Issue Amount | ₹ 1,500 crore |
| Post Issue Implied Market Cap | ₹ 6,133 Crore |
| Total shares on offer | Upto 40,983,606 Equity shares |
| Face Value | 10 per share |
| Price Band | ₹ 347 to ₹ 366 |
| Lot Size | 40 shares |
| Registrar | Bigshare Services Pvt. Ltd. |
| IPO Allotment Status Link | IPO Allotment Status | Kfintech |
IPO Timeline of KFintech Ltd.
| Event | Date |
|---|---|
| Issue opens on | Monday, 19th December 2022 |
| Issue closes on | Wednesday, 21st December 2022 |
| Finalization of basis of allotment | 26th December 2022 |
| Refunds/Unblocking ASBA fund | 27th December 2022 |
| Credit of equity shares to DP account | 28th December 2022 |
| Trading commences | 29th December 2022 |
Objective of the KFintech IPO Offer
The objective of the offer is to carry out the sale of equity shares and to make the equity shares available for trading on the stock exchanges. Prepayment, in full or in part, of borrowings availed by its subsidiaries.
Further, the Company expects that listing the equity shares will enhance its visibility & brand image, provide liquidity to the shareholders, and provide a public market for the equity shares in India.
KFIN TECHNOLOGIES LIMITED: About the Company
In India, it is a leading technology-driven financial services platform that provides comprehensive services and solutions to the capital markets ecosystem, including asset managers and corporate issuers across a variety of asset classes. Additionally, they provide a variety of investor solutions in Malaysia, the Philippines, and Hong Kong, such as mutual fund national pension schemes and private pension transaction origination and processing. It serviced 301 funds of 192 asset managers in India as of 30th September 2022, representing 30% market share based on the number of AIFs being serviced.
As of 30th September 2022, it is one of three central record-keeping agencies (CRAs) operating for the National Pension System (NPS). As on 30th September 2022, based on the number of AMC clients served, it is the largest provider of investor solutions to Indian mutual funds. It provides services to 24 out of 41 AMCs in India as on 30th September 2022, representing 59% of the market share, which is based on the total number of clients in AMC. In addition, it signed on two new AMCs that are yet to launch operations (Source: CRISIL Report).
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Further, through the acquisition of Hexagram, it serves six AMCs in India on fund accounting, of which three are of existing AMC clients in India for investor solutions. The Company provides several critically essential services to the Indian capital markets ecosystem. Its clients utilize its platform for the different service offerings for a substantial part of their operational requirements.
It provides a wide array of investor and issuer solutions, including omnichannel transaction origination & processing, channel management, which is the 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 & redemption, reporting & compliance checks on a real-time basis.
It also offers asset servicing products, including a distributor platform, an investor platform, and an online transaction platform, together with data analytics. Its technology products, solutions and platforms help the clients to focus on its core business functions, such as investment management and sales & marketing functions, whilst entrusting the bulk of operational front office, middle office and back office activities to its platform.
Support & Strengths of KFin Technology Limited
- Scaled platform with a strong track record of growth and market leadership.
- Its diverse multi-asset class platform is well-positioned to benefit from strong growth across large markets.
- Asset-light business model with high operating leverage, profitability, recurring revenue, and cash flow generation.
- Experienced management team backed by a strong board and marquee shareholders, Deeply entrenched, long-standing client relationships with a diversified & expanding client base.
Weaknesses & Risks of KFin Technology Limited
- Significant disruptions in breaches of data security.
- A decline in the growth, value and composition of AAUM of the mutual funds
- It may be exposed to certain liabilities under the terms of the contractual agreements with the clients.
- In the event of a disaster, its disaster recovery and business continuity plans may fail.
- Outstanding legal proceedings involving the Company and internal stakeholders.
KFin Technologies IPO Grey Market Premium:
KFin Technologies Ltd shares are currently available at a GMP Premium of ₹5 per share, according to market observers. Public issue prices ranges from ₹347 to ₹366 per share, Promoters of the company intend to raise 1,500 crores from this public issue of KFin Technologies IPO, which opened on 19th December and will remain open until 21st December 2022.
Important Financial Data of KFin Technology Limited
For the year/period ended (₹ in Crore)
Particulars ₹,
(in crore) As of Sept 30, 2022 As of Sept 30, 2021 As of
March 31, 2022 As of
March 31, 2021 As of
March 31, 2020 Equity Share Capital 167.57 150.84 167.57 150.84 150.84 Revenue from Operations 348.77 290.9 639.51 481.14 449.87 Revenue Growth (%) 19.89 NA 32.92 6.95 NA EBITDA 138.5 132.69 293.91 217.45 164.02 Net Profit for the period 85.35 67.8 148.55 -64.51 4.52 Basic EPS (Rs ) 5.09 4.49 9.44 -4.28 0.28 RONW (%) 12.36 22 29.99 -17.07 0.97
KFin Technology Limited: Things to Take Note
- The source for the information of the industry peer included above is its annual report for the year ended 31st March 2022. All the financial information for the listed industry peer mentioned above is on a consolidated basis.
- The source for the information of the Company included above is the Restated Consolidated Financial Information for the year ended 31st March 2022.
- The computation of the P/E ratio is based on the closing market price of equity shares on BSE on 30th November 2022 divided by the diluted EPS sourced from the annual report of the peer group company for the year ended 31st March 2022.
- RoNW is calculated as net profit after taxation and minority interest attributable to the Company’s equity shareholders divided by average shareholders’ funds as of 31st March 2022.
- Net Asset Value is computed as closing net worth divided by the outstanding closing number of Equity Shares as of 31st March 2022
- Mutual Fund business accounts for 90.3% of overall Computer Age Management Services Limited revenue, whereas it is 66.0% for the Company.
- The Company’s non-domestic mutual fund business includes global fund services (International investor solutions for international markets), CRA for National Pension System, issuer solutions and global business services (outsourced transaction processing).
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Peer Comparison of KFin Technologies Limited
Name of
Company Total Revenue (₹ in million) Face Value (Rupee per share) Closing price on NOV 30.2022 P/E
Ratio EPS
(Basic)
(₹) EPS
(Diluted)
(₹) Return on net worth
(%) NAV per share
(₹) KFin Technologies Limited 6,395.07 10 - N.A. 9.44 9.36 29.99 38.45
Other Listed Peers
Computer Age Management
Services Limited 9,096.68 10 2,299.45 39.37 58.73 58.41 49.32 132.43
Steps to Apply for the KFin Technology Limited IPO
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KFin Tech IPO: Easy Apply via your UPI ID within minutes.
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KFin Tech IPO: Track IPOs and modify bids effortlessly
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Note: Investments in securities market are subject to market risks, please read all the related documents carefully before investing.
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