KFin Technologies to open its IPO next week from Dec 19-21

• KFin Technologies will open its IPO next week from December 19 to December 21.
• The price band of the IPO is set at ₹347- 366 per share.
• The company plans to raise ₹1,500 crore through a complete offer for sale by promoter General Atlantic Singapore Fund.
• One of its many risks includes investigative cases on promoters and legal proceedings against the company.

KFin Technologies, a leading technology-driven financial services platform, will open its initial public offering (IPO) next week on December 19 and close on December 21. The price band of the IPO is set at ₹347- 366 per share.

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.

The company is the largest investor solutions provider to Indian mutual funds. It provides services to 24 out of 41 AMCs in India, representing 59% of market share.

General Atlantic Singapore Fund Pte owns a 72.51% stake in the company followed by Kotak Mahindra Bank with 9.86% stake while Compar Estates and Agencies hold a 10.86% stake in KFin Technologies. 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 ED summons in September 2021. 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 ED not to alienate/ sell/ transfer/ create any lien/ 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.

Further, the company said in its red herring prospectus that, “Our past growth rates may not be indicative of our future growth, and if we are unable to adapt to evolving market trends, manage our growth or execute our strategies effectively, our business, financial condition and results of operations may be adversely affected.”

KFin Technologies has reported a net profit of ₹148 crore in FY22 as against a net loss of ₹64 crore in FY21.
Source: RHP

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