KFin Technologies IPO to open soon
KFin Technologies IPO – KFin Technologies’ Rs 1,500 crore initial public offering is scheduled to begin trading today. General Atlantic Singapore Fund, the current promoter, would sell the offer-for-sale (OFS) between the range of Rs. 347 and Rs. 366. Financial services platform KFin Technologies received Rs 675 crore from anchor investors in advance of its IPO. Analysts claimed that investors with fairly long investment horizons may subscribe to the issuance.
Long-term investors may subscribe to the issue, according to Prabhudas Lilladher and SMC Global. Anand Rathi has given the issue a “subscribe” rating; KR Choksey Securities has given it a “Neutral” rating.
When last heard, the IPO was fetching a paltry Rs 8 per share in grey market premium, par with recent days.
KFin Technologies IPO
According to Anand Rathi, KFin Technologies has an asset-light business model with recurring revenue model, high operating leverage, profitability, and cash generation. At the upper end of the IPO price band, the issue is valued at 41.3 times its FY22 earnings.
“When compared to listed peers, the IPO’s valuation seems reasonable. Given the company’s wide range of product offerings, expansion of its clientele, and promising future, we advise giving its initial public offering (IPO) a “subscribe” grade “It read.
The problem has an SMC rating of two out of five stars.
“The business is a top platform for financial services driven by technology. It has numerous, diverse sources of income. The last three fiscal years’ bottom lines were a roller coaster. The business model of the company is asset-light and features recurring revenue, strong operating leverage, profitability, and cash generation. However, severe disruptions in its IT infrastructure or security breaches could have a negative impact on company brand and bottom line. A long-term investor could choose to buy the stock, “It read.
According to the amount of AMC clients served, Prabhudas Lilladher said one can subscribe to the issue for the long term because it is India’s largest investment solutions supplier to Indian mutual funds. According to the company, it serves 24 out of India’s 41 AMCs, accounting for 59% of the market based on the number of AMC customers.
“Based on the market capitalization of the NSE 500 businesses, the company maintains a 46% market share, making it one of just two large participants in India’s issuer solutions industry. Based on the volume of mainboard IPOs handled in FY’22 and H1FY’23, respectively, it also held a 40% and 29% market share.
As of September 30, KFin Technologies is the sole provider of investor and issuer solutions in India to offer services to asset managers such as mutual funds, AIFs, wealth managers, pension, and corporate issuers in addition to providing services to clients abroad in South East Asia and Hong Kong.
As of September 30, it was servicing 301 funds from 192 asset managers in India, which corresponds to a 30% market share based on the number of AIFs being handled. As of September 30, 2022, KFin Technologies is one of the three CRAs for the NPS that are still in operation in India.