KFintech IPO Listing: Flat debut for KFin Technologies, closes 0.5% lower than issue price KFin Technologies shares had a muted listing on the bourses on Thursday after the IPO closed last week. The shares opened flat amid a negative domestic market. The shares listed at Rs 369 on the BSE before falling 3%, as compared to the public issue price of Rs 366. After falling intraday, KFintech’s shares recovered to close 0.5% lower than the issue price at Rs 364. The market predicted a muted listing ahead of the company’s debut since KFin Tech’s shares were trading at a Rs 5 discount on the grey market. “KFin Technologies has debuted as a flat-to-positive listing at Rs. 367 (+0.27%) on the NSE to its issue price. The issue had also received an average response from investors on both the institutional and retail sides. It is a leading technology-driven financial services platform. It has the advantage of longstanding client relationships, and its asset-light business model is also a plus. However, the company’s financial results have been mixed. It reported a significant increase in revenue over the last 3 years and 6 months. However, the company’s margins declined in FY20, and it also incurred a loss in FY21, but it recovered and generated strong margins recently. Secondly, this issue is complete OFS and the company will not receive any proceeds from this IPO. So, allottees who applied for the public offering for listing premium are advised to maintain their stop loss at Rs. 340 and wait for further upside till Rs. 380,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart. The company fixed the IPO price band at Rs 347 – 366 per equity share. KFintech aimed to raise Rs 1,500 crore from this IPO. The company’s issue was completely an offer for sale by one of the promoters, General Atlantic Singapore Fund, which will receive all the issue 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. Ahead of the IPO opening for subscription, KFintech has raised Rs 675 crore from anchor investors at the upper price band of Rs 366 per share. 44 anchor investors invested in the company for 18.44 million equity shares. “One can subscribe for long term as it 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 24 out of 41 AMCs in India, representing 59% of the market share based on the number of AMC clients. It is one of only two players of scale in India’s issuer solutions space where the company holds a 46% market share based on the market capitalization of NSE 500 companies,” said Prabhudas Lilladher Advisory Team prior to the listing.
Retail inflation in milk was reported at 8.85% in May 2023. The milk inflation has remained elevated at over 6% since August 2022. Despite India being the largest milk producer since 1998, the commodity has been the second biggest factor after cereals such as rice and wheat in driving up retail inflation in the last fiscal.
Milk has the second highest weight in the food and beverages basket of the consumer price index at 6.61%, a notch lower than cereals and products with a 9.67% weight. Organised players, including Mother Dairy and Amul, hiked prices multiple times in the last one year citing higher fodder cost, robust demand and some impact due to reports of lumpy skin disease.
Industry sources said feed cost, which has a share of more than 65% in the cost of production of milk, has increased to Rs 20/kg from Rs 8 a year ago. The finance ministry in April had attributed the elevated milk inflation to a demand supply mismatch and said it could be one of the factors apart from volatile international crude oil prices and constrained supplies of milk would influence the country’s inflation trajectory.
“Milk production has been impacted by a lumpy skin disease infecting millions of cattle in late 2022,” the ministry said in the monthly economic review, adding that the vaccination drive against the disease is expected to curb the spread and immune the cattle against the skin disease.
According to official data, currently India is the world’s largest milk producer, and has a share of 23% in global milk production. For the first time in decades, the country’s milk production is likely to have stagnated in 2022-23 due to Lumpy Skin Disease in cattle across several states and the lagged effect of Covid-19 in the form of stunting of the animals, a senior official with department of animal husbandry and dairying recently had stated. The milk production was estimated at 221 million tonne in 2021-22.