Kfin Technologies, which has been the registrar for a number of initial public offers (IPOs), has filed draft papers with the market regulator Securities Exchange Board of India to raise ₹2,400 crore via an IPO.
The IPO is entirely an offer for sale by its existing promoter General Atlantic Singapore Fund, which holds a 74.94 percent stake in the company, as per the draft red herring prospectus. The company will not receive any proceeds from the offer as all of it will go to the promoter selling shareholder.
Apart from General Atlantic, Kotak Mahindra Bank is another lead stakeholder. Last year, it had acquired a 9.98 percent stake in the firm.
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, the firm's profit surged over 300 percent to ₹97.7 crore from ₹23.6 crore in the same period last year. Its revenue also rose to ₹458.66 crore as against ₹338.83 crore in the year-ago period, up 35 percent.
For FY21, revenue stood at ₹481.14 crore as against ₹449.87 crore the previous year. Net loss for the year stood at ₹64.51 crore as against a net profit of ₹4.52 crore.
KFin is the country’s largest investor solutions provider to Indian mutual funds based on the number of the 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 percent market share, as per the DRHP. It is servicing 270 funds of 157 asset managers in India, representing 32 percent market share based on the number of AIFs being serviced.
The company is an investor and issuer serving platform that provides financial technology solutions across asset classes like mutual funds, alternatives, insurance, and pension.
The company operates in multiple large markets in India, Hong Kong, Malaysia and the Philippines, along with a presence in Oman and Maldives, across several of these asset classes.