India: KFIN Technologies Limited, a leading technology-driven financial services platform providing comprehensive services to the capital market ecosystem, has filed its draft red herring prospectus with the market regulator SEBI to raise Rs 2400 crore via an initial public offering.
The IPO is entirely an offer for sale (OFS) of up to Rs 2,400 crore worth of equity shares by General Atlantic Singapore Fund Pte. Ltd.
KFin provides services to asset managers and corporate issuers across asset classes in India and also provides solutions including transaction originating and processing for mutual funds and private retirement schemes in Malaysia, Philippines and Hong Kong.
KFin Technologies is India’s largest investor solutions provider to Indian mutual funds, based on number of AMC clients serviced as on January 31, 2022. The firm provides services to 25 out of 42 AMCs in India representing 60% of market share based on the number of AMC clients. The firm has also signed two new AMCs that are yet to launch operations.
KFin also serves six AMCs in India on fund accounting, of which, three are its existing AMC clients in India for investor solutions with the acquisition of Hexagram. The firm is also the only investor and issuer solutions provider in India offering services to asset managers such as mutual funds, alternative investment funds (AIFs), wealth managers and pension as well as corporate issuers in India, besides overseas clients in South East Asia and Hong Kong.
KFin serves 270 funds of 157 asset managers in India, representing 32% market share based on number of AIFs being serviced. Kfin is one of the two operating central record keeping agencies (CRA) for the National Pension System (NPS). The firm also has 16 AMC clients in Malaysia out of 60 in addition to three clients in Philippines and Hong Kong.
KFin’s vision is to be the most preferred and proactive solutions provider for investment managers and intermediaries, which helps clients increase their market share by providing an agile platform for product innovation, widest geographical reach and technology enabled omni-channel investor services. For the nine month ended December, KFin clocked revenues from operations of Rs 458 crore and a net profit of Rs 97.6 crore, representing a year on year growth of 35% and 313% respectively.
KFin Technologies is majority owned by funds managed by General Atlantic, a leading global private equity investor, which holds a stake of 74.94%. Kotak Mahindra Bank Limited acquired 9.98% stake in KFin Technologies in 2021.
The Book Running Lead Managers to the offer are ICICI Securities Limited, Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, IIFL Securities Limited and Jefferies India Private Limited.
The face value of the equity shares is Rs 10 each. The shares are proposed to be listed on the BSE and NSE.
