Kfin Tech files draft papers with Sebi for Rs 2,400-crore IPO

Kfin Technologies Ltd, which has been the registrar of many of the initial public offers (IPO) floated in the last few years, has filed draft papers with Securities Exchange Board of India to raise funds through share sale.

The IPO will be a pure offer-for-sale of up to Rs 2,400 crore by its existing promoters General Atlantic Singapore Fund Pte Ltd, which holds 74.94 percent stake in the company.

ICICI Securities, Kotak Mahindra Capital, JP Morgan India Pvt Ltd, IIFL Securities and Jefferies India Pvt Ltd are the lead managers to the issue.

For nine months ended December 2021, Kfin Tech posted a revenue of Rs 458.66 crore as against Rs 338.83 crore a year ago. Net profit for the period scaled to Rs 97.70 crore from Rs 23.60 crore last year. For FY21, revenue stood at Rs 481.14 crore as against Rs 449.87 crore previous year. Net loss for the year stood at Rs 64.51 crore as against a net profit of Rs 4.52 crore.

The company is an investor and issuer serving platform that provides financial technology solutions across asset classes like mutual funds, alternatives, insurance, and pension.

As on January 31, 2022, Kfin Tech is India’s largest investor solutions provider to mutual funds, based on the number of AMC clients serviced. It is providing services to 25 out of 42 AMCs in India, representing 60 percent of market share based on the number of AMC clients.

Kfin Tech 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 South East Asia and Hong Kong. It is servicing 270 funds of 157 asset managers in India, representing 32 percent market share based on the number of AIFs being serviced.

It is servicing 19 AMC clients in Malaysia, Philippines and Hong Kong and have signed on three AMCs in Malaysia and Singapore that are yet to go live with it.

The company operates in multiple large markets in India, Hong Kong, Malaysia and the Philippines, along with presence in Oman and Maldives, across several of these asset classes.