KFin Technologies Share Price: Financial services platform KFin Technologies made a lackluster debut on the exchanges on Thursday as they traded at BSE Rs 369, on par with the issue price of Rs 366. On NSE, the stock was listed at Rs 367, up 0.27% from relative to the issue price.
The listing largely met analysts’ expectations given the lower-than-expected number of IPO filings, an all-for-sale issue and the recent spate of stock market corrections.
The listing largely met analysts’ expectations given the lower-than-expected number of IPO filings, an all-for-sale issue and the recent spate of stock market corrections.
KFin Technologies’ initial public offering (IPO) received 2.59 subscriptions on the last day of the offering which closed on Wednesday, December 21, 2022. The issue received bids for 6,14,67,520 shares against 2,37,75,215 shares tendered. The price range of the three-day public offering was set at Rs 347-366 per share.
The company that provides services and solutions to asset managers and corporate issuers has raised Rs 1,500 crore from the public offering, which was entirely a sale offer from promoter General Atlantic Singapore Fund Pte Ltd.
KFin also offers several solutions for investors, including transaction initiation and processing for mutual funds and private pension plans in Malaysia, the Philippines and Hong Kong.
The company performed well with an asset-light business model, posting a profit of Rs 148.5 crore for 2021-22 against a loss of Rs 64.5 crore a year earlier. Revenue from operations in the same period increased by 33 percent to Rs 639.5 crore.
Profits for the six months ended September FY23 grew by 26 percent to Rs 85.3 crore, and revenue increased by 20 percent to Rs 348.7 crore last year.
This is the sixth listing in the last month of this calendar year. Four of the last five listings disappointed investors. Abans Holdings was locked in the 20 percent lower circuit on the trading day, while Landmark Cars, Sula Vineyards and Uniparts India closed with 6-9 percent losses on their debut, but Dharmaj Crop Guard returned 12 percent gains.
Should you buy, sell or hold?
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd., said KFin Technologies debuted as a flat-to-positive listing at Rs. 367 (+0.27%) at the issue price. The issue also received an average response from investors, both institutional and retail.
It is a leading technology-driven financial services platform. It has the advantage of long-term customer relationships, and the asset-light business model is also a plus. However, the company’s financial results have been mixed. It reported a significant increase in sales in the past 3 years and 6 months. However, the company’s margins fell in FY20 and it also suffered losses in FY21, but it bounced back and generated strong margins recently. Second, this issuance is completely OFS and the company will not receive any proceeds from this IPO.
So allottees who have signed up for the listing premium public offer are advised to keep their stop loss at Rs. 340 and waiting for further increase to Rs. 380.
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