KFin Tech’s ₹1,500 cr IPO opens tomorrow. Subscribe or not? | Jobs Vox

The offer for sale under the IPO is up to 2,37,75,215 equity shares. The company has fixed the price band ₹347 per share and ₹366 per share. The bid size is 40 shares and multiples. It is the face value of equity shares. ₹10 per piece. Of the total IPO amount, 75% of the issue will be reserved for institutional buyers, 15% will be reserved for non-institutional investors and the remaining 10% will be reserved for retail individual investors.

As the IPO is a fully public offering, therefore KFin will not receive any proceeds from the public issue. The selling shareholders receive the money.

Firms such as ICICI Securities, Kotak Mahindra Capital Company, JP Morgan India, IIFL Securities and Jefferies India are acting as lead bookrunners for the IPO. When Bigshare Services is the Registrar of the Offer.

Caffeine Tech is one of the technology-driven financial services platform offering comprehensive services and solutions to the capital market ecosystem, including asset managers and corporate issuers in India, and offers a range of investor solutions including origination and processing of transactions for mutual funds and private pension plans. in Malaysia, the Philippines and Hong Kong.

As of September 30, 2022, the company is servicing 301 funds from 192 asset managers in India — representing a 30% market share based on the number of AIFs they are servicing, according to a CRISIL report.

In the first six months of the 23rd fiscal year, the company’s total revenue stood ₹3,537.63 million and a net profit of Rs ₹853.45 crores. In FY22, the total revenue of the company has gone up. ₹6,455.64 million from ₹4,861.98 million in FY21, but the Pat ₹1,485.49 million in losses ₹645.07 million in 21.

Should you register for KFin Tech IPO or not?

Prabhudas Lilader Advisory Group in their note said, “One can register for a long time. India’s mutual funds are the largest investor solutions provider, based on the number of AMC clients. The company is servicing 24 of the 41 AMCs. In India, based on the number of AMC clients. It represents a market share of 59%. In the Indian issuer solutions space, the company is one of the two scale players with a market share of 46% based on NSE 500 capitalization.

The stockbroker’s note added, “It also had 40% and 29% market share based on the number of main boards held in FY’22 and H1FY’23. With the acquisition of Hexagram, Kfin serves six AMCs in India. Fund Accounting. Kfin serves 192 asset managers and 301 funds in India.” This is based on the number of AIFs providing services, representing 30% of the market share.

On the other hand, Reliance Securities highlighted in its IPO note that KFin has transformed its business into a financial technology-driven platform-as-a-service model. The technology offering enables transaction lifecycle management combined with secure data collection, processing and storage. It handled 1.6 million average daily transactions including 1 million strategic transactions per day such as Strategic Investment Plans (“SIPs”) and $3.2 billion. Over six months, the average daily payout for domestic mutual funds has ended.

In FY22 and 1HFY23, it has maintained more than 99.5% accuracy of all transactions executed on schedule as per agreement with customers. In the year

On a positive note, Reliance Sec notes, the company is the largest investor solutions provider in India with a diverse product and service base, large market share and global presence. However, ongoing investigations for former promoters are overwhelming. At the current valuation, the case appears to be fully priced, minus all near-term positives, and the risk-reward is not good.

Further, while giving a ‘avoid’ recommendation on the IPO, Religare Broking has identified key concerns in its IPO note. These include — There are outstanding legal issues against the promoter and the company; work in a highly controlled environment; A significant portion of revenue is absorbed by a few customers. Offer for sale in its entirety; And the retail part is only 10% of the total issue.

After the IPO issue, the shares are planned to be listed on stock exchanges BSE and NSE.

On the gray market, Sunday, the IPO is trading at a premium. ₹5 per equity share, according to IPO Watch data.

With the latest GMP ₹5, the IPO has the possibility of listing. ₹371 shares of stock ₹5 plus high price band of ₹366 per share). However, list price expectations may change in the future. Generally, gray market is where the shares of a company are publicly offered to traders and therefore not regulated by SEBI. GMP gives a fair idea of ​​how a stock is listed, but no guarantee of accuracy.

Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms and not of Mint. We recommend that investors check with certified professionals before making any investment decision.