KFin Technologies is planning to enter the capital markets on Monday, 19 December, with an initial public offer (IPO) in the form of an offer for sale from General Atlantic Singapore Fund, aggregating to Rs 1500 store The shares, of face value Rs 10, are being offered in a price band of Rs 347 to 366.
Once a part of the Karvy group of companies, KFin is now a separate company with professional management. General Atlantic, which is the main promoter of the company, will reduce its holding to less than 50% post-issue. Kotak Bank has recently taken a 9.9% stake.
Headquartered in Hyderabad, KFin is the business of providing operational support to Mutual Funds and Pensions. The company registered a turnover of Rs 348 crore in the first six months of the current financial year, with a Profit After Tax margin of 24%. Addressing a news conference in Ahmedabad on Thursday, KFin’s managing director Sreekanth Nadella said that 99% of the company’s turnover comes from recurring revenues from established clients. “Our fees are in the form of a percentage of the client’s assets under management and our clients have been growing their assets,” he said.
KFin has also been growing inorganically, with the acquisition of Hexagram and Sundaram BNP Paribas Fund Services. Nadella, who was with Accenture before he joined KFin, said the company is now taking its services to markets in South East Asia. “We already have a presence in The Philippines, Malaysia and Hong Kong. We plan to expand into Singapore next,” he said.
Addressing the news conference, KFin CFO Vivek Mathur said that 60% of the company’s revenues currently comes from Mutual Fund (MF) clients. “We plan to grow the share of our non-MF business, especially Alternate Investment Funds,” he said.
Employing 5500 people, KFin uses Saas-based software to provide end-to-end transaction management, channel management, compliance solutions, data analytics, and other digital services to asset managers.75% of KFin’s IPO is reserved for Qualified Institutional Investors, 15% for High Networth individuals and 10% for retail.
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