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.
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.
