KFin Technologies Limited IPO Company Profile :
KFin Technologies Limited is a leading technology-driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem including asset managers and corporate issuers across asset classes in India and provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, Philippines and Hong Kong, on account of the following:
-
As on January 31, 2022, KFin Technologies Limited is India’s largest investor solutions provider to Indian mutual funds, based on the number of AMC clients serviced. The company is providing services to 25 out of 42 AMCs in India, representing 60% of the market share based on the number of AMC clients. Further, through the acquisition of Hexagram, we serve six AMCs in India on fund accounting, of which, three are our existing AMC clients in India for investor solutions
-
As on January 31, 2022, KFin Technologies Limited is the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, alternative investment funds (“AIFs”), wealth managers, and pension as well as corporate issuers in India, besides servicing overseas clients in Hong Kong and South East Asia
-
KFin Technologies Limited is servicing 270 funds of 157 asset managers in India as on January 31, 2022, representing 32% market share based on the number of AIFs being serviced
-
KFin Technologies Limited is one of the two operating central record-keeping agencies (“CRAs”) for the National Pension System (“NPS”) in India as on January 31, 2022
-
KFin Technologies Limited is India’s largest issuer solutions provider based on the number of clients serviced, as of January 31, 2022. The company is one of only two players of scale in India’s issuer solutions space where it holds a 43% market share based on the market capitalization of NSE 500 companies, and a 34% market share based on the number of clients serviced within NSE 500 companies, each as on January 31, 2022
-
As on January 31, 2022, out of the 60 AMCs in Malaysia across wholesale funds, unit trust funds, and private retirement schemes as specified in the CRISIL Report, the company is servicing 16 AMC clients in Malaysia in addition to three clients in the Philippines and Hong Kong as on January 31, 2022. In addition, the company has signed on two new AMCs in Malaysia and one AMC in Singapore that is yet to launch operations as on January 31, 2022.
| IPO-Note | KFin Technologies Limited |
| Rs. 347 – Rs. 366 per Equity share | Recommendation: Avoid |
KFin Technologies Limited IPO Details:
| Issue Details | |
| Objects of the issue | ·To gain the listing benefits |
| Issue Size | Total issue Size – Rs. 1500 Cr.
Offer for Sale – Rs. 1500 Cr. |
| Face value | Rs. 10.00 Per Equity Share |
| Issue Price | Rs. 347 – Rs. 366 |
| Bid Lot | 40 Shares |
| Listing at | BSE, NSE |
| Issue Opens | 19th Dec, 2022 – 21st Dec, 2022 |
| QIB | 75% of Net Issue Offer |
| Retail | 10% of Net Issue Offer |
| NIB | 15% of Net Issue Offer |
KFin Technologies IPO
Wants To Apply Online 
Promoter: General Atlantic Singapore Fund Pte. Ltd.
KFin Technologies Limited IPO Financial Analysis:
| Particulars | 9M of FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | FY-19 (in cr.) | CAGR(FY-19 to FY-21) |
| Revenue from sale | 458.66 | 481.14 | 449.87 | 162.43 | 43.6% |
| Other Income | 4.86 | 5.05 | 5.39 | 2.33 | |
| Employee Cost | 169.40 | 188.61 | 193.98 | 65.24 | |
| Other expenses | 85.14 | 80.14 | 97.26 | 31.57 | |
| EBITDA | 208.97 | 217.45 | 164.02 | 67.94 | 47.4% |
| EBITDA margin% | 45.56% | 45.19% | 36.46% | 41.83% | |
| Depreciation | 26.98 | 97.99 | 92.21 | 33.89 | |
| Interest | 50.27 | 51.95 | 53.30 | 20.19 | |
| PBT | 131.72 | 67.51 | 18.51 | 13.86 | 69.5% |
| Total tax | 34.03 | 132.02 | 13.98 | 4.91 | |
| PAT | 97.69 | -64.51 | 4.52 | 8.96 | |
| PAT margin% | 21.30% | -13.41% | 1.01% | 5.51% | |
| Dep./revenue% | 5.88% | 20.37% | 20.50% | 20.87% | |
| Int./revenue% | 10.96% | 10.80% | 11.85% | 12.43% |
KFin Technologies Limited IPO Segment Revenue:
| Segment | 9M of FY-22(in cr.) | % | FY-21(in cr.) | % | FY-20(in cr.) | % | FY-19 (in cr.) | % | CAGR(FY-19 to FY-21) |
| Registry services | 425.03 | 92.67% | 436.45 | 90.71% | 412.34 | 91.66% | 150.33 | 92.55% | 42.7% |
| Data processing services | 31.20 | 6.80% | 42.02 | 8.73% | 36.18 | 8.04% | 11.74 | 7.23% | 53.0% |
| Pension fund solutions | 2.43 | 0.53% | 2.68 | 0.56% | 1.35 | 0.30% | 0.36 | 0.22% | 95.5% |
| Total | 458.66 | 100.00% | 481.14 | 100.00% | 449.87 | 100.00% | 162.43 | 100.00% | 43.6% |
Trade AnyTime AnyWhere With Elite Empower Mobile App
Check KFin Technologies IPO Allotment Status
Go KFin Technologies IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
- To KFin Technologies IPO Allotment Status
- Go to Application Status
- Select IPO as KFin Technologies IPO
- Enter your PAN Number or Application Id or DP Client Id.
KFin Technologies IPO
Application Form
Pre-Offer shareholding of the Selling Shareholders:
| S. No. | Name of the Selling Shareholder | No. of Equity Shares
held |
Percentage of the pre-Offer paid
Up equity share capital (%) |
| 1. | General Atlantic Singapore Fund Pte. Ltd. | 125,580,400 | 74.94% |
| Total | 125,580,400 | 74.94% | |
| Other Shareholders (Promoters & Promoter Group) | |||
| 2. | Compar Estates and Agencies Private Limited | 18,414,296 | 10.99% |
| 3. | Kotak Mahindra Bank Limited | 16,725,100 | 9.98% |
| 4. | C. Parthasarathy – HUF | 1,986,974 | 1.18% |
| Total | 162,706,770 | 97.09% | |
KFin Technologies Limited IPO Strengths:
-
KFin Technologies Limited achieved the market leadership position across its businesses by leveraging its platform comprising in-house technology and services developed in-house, combined with deep domain expertise resulting from its experience of working with multiple regulators, the low-cost operations for international clients where the company leverages India’s low-cost advantage, dedication to client success, and continued enhancement of its platform through in-house product development as well as synergistic acquisitions.
-
KFin Technologies Limited has also benefited from the growth of the mutual fund industry’s aggregate QAAUM, which grew at a CAGR of 18.9% between March 2015 and December 2021 to reach ₹ 38.20 trillion.
-
KFin Technologies Limited operates in multiple large markets in India, Hong Kong, Malaysia, and the Philippines, along with a presence in Oman and Maldives, across several of these asset classes. This has allowed it to grow as a regional business and not just as an India-focused business.
-
According to the CRISIL Report, India’s GDP is forecasted to grow at a faster pace than other economies, with GDP expected to grow at 6.0-7.0% per annum between Fiscals 2023 and 2025 and is poised to benefit from the focus on investments, product linked incentive scheme, which aims to incentivize local manufacturing by giving volume-linked incentives to manufacturers in the specified section, a raft of reform measures by the Indian government and policies aimed towards greater formalization of the Indian economy, which are expected to accelerate the per capita income growth.
-
KFin Technologies Limited’s market leadership position and long-term integrated client relationships across its platform put it in a favorable position to increase its share of business from these businesses’ existing clients.
-
KFin Technologies Limited has experienced significant growth due to an increase in business with existing clients. The increase in business with clients is due to growth in the company’s client’s business as well as various cross-sell and up-sell activities undertaken by it such as technology solutions towards website development, mobile application developments, infra and hosting facilities and platform solutions towards investor’s onboarding and e-voting platforms
-
KFin Technologies Limited operates an attractive asset-light model with strong free cash flow generation and internal accruals that enable it to continue investing in various growth initiatives as well as undertake share buybacks so as to reward its shareholders. The company’s asset turnover ratio was 3.01x and 2.44x in Fiscal 2021 and the nine months ended December 31, 2021, respectively
KFin Technologies Limited IPO Risk Factors:
-
KFin Technologies Limited’s mutual fund clients contribute towards a significant portion of its revenue from operations. The company’s future revenue and profit are significantly dependent on the growth, value, and composition of AAUM of the mutual funds managed by its clients, which may decline.
-
KFin Technologies Limited derive a significant portion of its revenues from a few customers and The loss of one or more of its significant clients or a reduction in the amount of business or fees the company obtains from them or an adverse change in the determination of the fees that the company receive from them could have an adverse effect on the business and results of operations of the company.
-
KFin Technologies Limited’s issuer solutions business is affected by seasonality, any failure by the company to develop sufficient capacity to meet client demand during periods of seasonal or peak demand could adversely affect client experience and the results of operations of the company.
-
Consolidation in the financial services industry could adversely affect the revenues by eliminating some of the existing and potential clients of the company and could make it increasingly dependent on a limited number of clients.
Objects of the Offer:
KFin Technologies Limited will not receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds after deducting the Offer expenses and relevant taxes thereon, will be received by the Promoter Selling Shareholder, in proportion to the Offered Shares sold by the Promoter Selling Shareholder as part of the Offer.
KFin Technologies Limited IPO Outlook:
KTL is a SEBI registered, Registrar to an issue and Share Transfer Agent (RTA) which offers various investor services to corporates, mutual fund houses, AIFs etc. The company is the largest issuer solutions provider in India based on the number of clients services as of September 30, 2022. The business segment of the company majorly comprises Registery Services, Data Processing Services and Pension Services contributing to average 91.73%, 7.79% and 0.48% from FY20 to FY22. The company had generated 88.32% from operations in India and Rest from the Outside. The company has transformed its business into a financial technology driven platform-as-a-service model and is focusing to further expand its client base and market share. According to CRISIL MI&A, the investor solutions market in India is projected to reach to Rs.28-30 billion from the estimated Rs.14-15 billion in FY 2022. The financial penetration is further going to increase because of the rising awareness of financial products. The fintech adoption is going to lead to faster and cheaper reach of financial services across India. On the basis of FY22 earnings, KTL is offering the PE of 41.29 times on the upper price band against the PE of 39.37 of CAMS Limited, the only listed peer of the company. Analyzing all the parameters we recommend to avoid the offering.
KFin Technologies Limited IPO Prospectus:
- KFin Technologies Limited IPO DRHP –
- KFin Technologies Limited IPO RHP –
Registrar to the offer:
Bigshare Services Private Limited
Contact Person: Jibu John
Telephone no.: +91 022 62638200
E-mail: kfintechipo@bigshareonline.com
KFin Technologies IPO FAQ
Ans. KFin Technologies IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The KFin Technologies IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.