KFin Technologies IPO subscribed 2.59 times on day 3

• KFin Technologies has been subscribed 2.59 times on the last day of the IPO.
• The company plans to raise ₹1,500 crore through a complete offer for sale by promoter General Atlantic Singapore Fund.
• The price band of the IPO is set at ₹347-366 per share.

The initial public offering of KFin Technologies, a leading technology-driven financial services platform, has been subscribed 2.59 times on the l ast day of the IPO.

KFin Technologies’ IPO received good demand from non-institutional investors, who subscribed 4.17 times. The portion reserved for retail investors has been subscribed 1.36 times.

The company plans to raise ₹1,500 crore through a complete offer for sale by one of the promoters General Atlantic Singapore Fund — who will receive all the proceeds. The company will not receive any funds from the IPO.

KFin Technologies provides transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines and Hong Kong. It provides services and solutions to asset managers and corporate issuers across asset classes in India along with several investor solutions.

KFin Technologies is the largest investor solutions provider to mutual funds in India. It provides services to 24 out of 41 AMCs in India, representing 59% of market share.
General Atlantic Singapore Fund owns a 72.51% stake in the company followed by Kotak Mahindra Bank which has a 9.86% stake, and Compar Estates and Agencies, which holds a 10.86% stake in the company. However, Kotak and Compar are not selling their shares in the upcoming IPO.

One of the company’s many risks is the investigative cases on its promoters. Its promoters are subject to ongoing investigations by enforcement agencies, including the Enforcement Directorate. The outcome of such investigations may adversely impact the company and the market price of its equity shares.

The company’s MD and CEO Sreekanth Nadella received a summons in September 2021 in connection with certain investigations being conducted by the Enforcement Directorate under the provisions of the Prevention of Money Laundering Act, 2002, against Karvy Stock Broking.

In the same month, KFin Technologies received a freezing order where shareholders Compar Estates and Agencies Private Limited, C Parthasarathy– HUF and Rajat Parthasarathy were instructed by the ED not to alienate, sell, transfer, or create any lien or liability in respect of the equity shares of the company.

There are also outstanding legal proceedings involving the company, its subsidiaries, group companies and certain directors. There are three criminal proceedings, eight tax proceedings and one statutory or regulatory action against the company.

In 2021, SEBI had initiated adjudication proceedings against the company for violation of unfair trade practices and slapped a fine of ₹1.5 crore.

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