KFin Technologies gets Sebi nod to float Rs 2,400-crore IPO Financial services platform KFin Technologies has received capital markets regulator Sebi’s approval to raise Rs 2,400 crore through an initial public offering (IPO), market sources said on Thursday. The company had filed preliminary IPO papers with Sebi on March 31, this year. Going by the Draft Red Herring Prospectus (DRHP), the Rs 2,400-crore IPO is entirely an Offer-For-Sale (OFS) by promoter General Atlantic Singapore Fund Pte. Ltd. The company will not receive any proceeds from the offer as all of it will go to the promoter selling shareholder.The Securities and Exchange Board of India (Sebi) has approved the initial share sale of KFin Technologies, the sources said.KFin is majority owned by funds managed by General Atlantic, a leading global private equity investor, which holds a 74.94 per cent stake in the company. Last year, Kotak Mahindra Bank had acquired a 9.98 per cent stake in the company. The company provides services to asset managers and corporate issuers across asset classes in India. It also provides solutions, including transaction originating and processing for mutual funds and private retirement schemes in Malaysia, Philippines and Hong Kong. Also read| Bikaji Foods International IPO share allotment: Check status online, grey market premium; listing on 16 Nov KFin is the country’s largest investor solutions provider to Indian mutual funds based on the number of asset management company (AMC) clients serviced as on January 31, 2022. The firm provides services to 25 out of 42 AMCs in India, representing 60 per cent market share. For the nine months ended December, KFin posted revenues from operations at Rs 458 crore and a net profit of Rs 97.6 crore, representing a year-on-year growth of 35 per cent and 313 per cent, respectively. ICICI Securities, Kotak Mahindra Capital Company, JP Morgan India, IIFL Securities and Jefferies India are the book running lead managers to the issue. The equity shares of the company are proposed to be listed on BSE as well as NSE.
However, he believes that the impact on the Indian market is going to be temporary since there could be some short-term impact on flows into Indian equity markets. But since the Indian economy is on a strong wicket and will continue to remain resilient.
“Improved fiscal situation, controlled current deficit, stable interest scenario combined with good corporate earnings should lead to limited impact on the Indian bond market and equity market too,” he added.
The midcap and smallcap indices took a bigger knock with the BSE MidCap fell 2.51%, while BSE SmallCap index dived 4.18%. According to Amnish Aggarwal, head, research, Prabhudas Lilladher, the valuations were already high and some correction was expected. “If the situation sustains as it is then further correction can’t be ruled out,” Aggarwal said.
Telecommunication and industrials indices were the top laggards with BSE Telecommunication declining 3.82%, followed by BSE Industrials falling 3.26%. JSW Steel (-2.99%), Tata Steel (-2.52%) and Tata Consultancy Services (-2.44%) were the top losers of Sensex.
Surprisingly, both foreign portfolio investors and domestic institutional investors were net buyers today. While, FPIs net bought shares worth Rs 252.25 crore, DIIs have purchased shares worth Rs 1,111.84 crore, as per provisional data from exchanges.
Calling this a “normal phenomena” Pankaj Pandey, head, research, ICICI Direct said, “I will not really give too much weight to a single day buying figure. Amid concerns of elevated interest rate and geopolitical tensions, in a typical market cycle, 8-10% correction is possible at any point in time.”
The brunt of geopolitical conflict, elevated interest rates and rising crude oil prices was also felt by other Asian- Pacific markets. Jakarta Composite Index lost 1.57% followed by Shanghai Composite Index and PSEi, which fell 1.47% and 0.89%, respectively. Nikkei and KOSPI declined 0.83% and 0.76%.