KFin Technologies makes its D-Street debut at Rs 369 per share

KFin Technologies, a financial services platform, failed to wow investors on its launch, with shares opening at par with the issue price on December 29.

Given the lower-than-expected IPO subscription numbers, a complete offer-for-sale issue, and the recent string of equities market corrections, the listing basically fulfilled experts' expectations.

The shares started at Rs 367 on the NSE, against an issue price of Rs 366, and at Rs 369 on the BSE, which was Rs 369,  higher by 0.82 percent.

Analysts predicted that KFin will list at par or at a small discount to the issue price. The public offering of a technology-driven financial services platform had a lukewarm reaction from investors between December 19 and 21, with 2.59 subscribers, mostly supported by qualified institutional buyers.

The company, which provides services and solutions to asset managers and corporate issuers, raised Rs 1,500 crore in a public offering led by promoter General Atlantic Singapore Fund Pte Ltd.

The offer price range was set at Rs 347-366 per share.

KFin also offers a variety of investor services, such as transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines, and Hong Kong.

The company performed well with an asset-light business model, earning Rs 148.5 crore in profit for 2021-22, compared to a deficit of Rs 64.5 crore the previous year. In the same period, revenue from operations climbed by 33% to Rs 639.5 crore.

Its profit for the six months ended September FY23 increased by 26 percent to Rs 85.3 crore, while revenue increased by 20 percent to Rs 348.7 crore.