KFin Technologies to debut today; experts anticipate listing at a discount

Sunil Shankar Matkar

December 28, 2022 / 07:04 AM IST

KFin Technologies, the tech-driven fiscal services platform, is expected to beryllium a unfortunate of the marketplace volatility arsenic experts foretell that the banal volition debut contiguous with marginal discount.

Tepid effect to archetypal nationalist offerings, anemic listings of the past fewer IPOs, and being a implicit offer-for-sale contented are different cardinal reasons that whitethorn interaction the KFin listing.

The archetypal nationalist offering of KFin, the largest capitalist solutions supplier to Indian communal funds (based connected respective AMC clients serviced), was subscribed conscionable 2.59 times during December 19-21, led by qualified organization buyers whose reserved information was booked 4.17 times.

Retail investors bought 1.36 times the allotted quota, but determination was muted effect from precocious networth individuals who bid for 23 percent shares of the information acceptable speech for them.

KFin raised Rs 1,500 crore from the maiden nationalist contented which was wholly an offer-for-sale by promoter General Atlantic Singapore Fund Pte Ltd. Hence each the wealth was received by promoter, and the institution did not get immoderate wealth from the offer.

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"Considering lower-than-expected subscription effect from each capitalist categories owed to afloat priced-in IPO connection and muted grey request connected the backmost of the contented being purely an offer-for-sale (OFS), providing an exit to promoter General Atlantic Singapore Fund, followed by mediocre listing by past fewer IPOs, we expect astatine par oregon discounted listing for KFin," Prashanth Tapse, Senior VP Research astatine Mehta Equities said.

If we look astatine its fiscal way grounds the contented is afloat priced-in and discounts each near-term maturation prospects hence discounted listing tin beryllium possible, helium feels.

In the grey market, KFin shares traded astatine a mean discount of astir 1-odd percent to the last contented terms considering the existent marketplace volatility and muted effect to offer, analysts said.

"KFin Technologies has seen a driblet successful its grey marketplace terms implicit the past fewer days, owing to the sour marketplace sentiment. We expect it to database adjacent to connection terms and won't beryllium amazed to spot a marginal discount also," Manish Chowdhury - Head of Research astatine Stoxbox said.

Manish finds KFin to beryllium richly valued compared to CAMS.

KFin Technologies provides broad services and solutions to the superior markets ecosystem including plus managers and firm issuers crossed plus classes successful India. It besides provides respective capitalist solutions, including transaction origination and processing for communal funds and backstage status schemes successful Malaysia, Philippines and Hong Kong.

The institution with asset-light concern exemplary recorded bully maturation successful its financials, arsenic the nett aft taxation stood astatine Rs 148.5 crore for FY22 against nonaccomplishment of Rs 64.5 crore, and the gross successful aforesaid play jumped to Rs 639.5 crore, from Rs 481.1 crore.

Profit aft taxation for six months ended September FY23 came successful astatine Rs 85.35 crore connected gross of Rs 348.7 crore.

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