KFin Technologies IPO Subscription Day 1: KFin Technologies Initial Public Offer (IPO) will open today, December 19 for subscription. The public issue will remain open for subscription till December 21. The technology-driven financial services company aims to raise Rs 1,500 crore from its public offer, which is completely OFS (offer for sale) in nature.
KFin Technologies IPO Price Band
The IPO is worth Rs 1,500 crores and the issue price of KFin Technologies IPO is set at Rs 347-366. The company has already raised Rs 675 crore from anchor investors ahead of the IPO.
Retail investors can buy a lot of 40 shares worth Rs 14,640. Maximum 13 lots can be bought worth Rs 1,90,320. Minimum lot for High Net Worth Individual (HNI) is 14, worth Rs 2,04,960. A maximum of 69 lots can be bought by HNI, worth Rs10,10,160.
KFin Technologies IPO GMP
According to market observers, shares of KFin Technologies Ltd are available at a premium of Rs 5 per equity share.
KFin Technologies IPO Lot Size
A bidder will be able to apply for this IPO in lots and one lot will comprise 40 shares of the company. A bidder in retail category can apply for a minimum one lot and maximum 13 lots.
KFin Technologies IPO Allotment & Listing
The finalisation of share allocation is most likely on December 26, 2022. The public issue is proposed for listing on BSE and NSE and likely date for share listing is December 29, 2022.
KFin Technologies IPO: Should you Buy?
Giving ‘subscribe’ tag to the IPO, Anand Rathi report says, “The company has asset-light business model with recurring revenue model, high operating leverage, profitability and cash generation. The company is available at the upper end of the IPO price band, it is offered at 41.3x its FY22 earnings with a market cap of Rs. 6,443.4 million. The valuation of the IPO appears to be reasonable when we compare with listed peers. The company has significant scope for growth, considering its diverse product profile and addition of new client base and bright prospects ahead, we recommend a “Subscribe” rating to this IPO.”
“The company posted losses of Rs 64.5 crore in FY21 due to Covid-led disruption, however, in FY22, profits saw decent growth and improved to Rs 148.6 crore. On the valuation front, we believe it is expensive as compared to near peers,” said Religare Broking.
The brokerage has cited a highly regulated environment, full offer for sale, small retail portion and dependence on a few big players as key risks for the issue. It has suggested investors to avoid the issue.
EBITDA margin has remained sturdy above 45% in FY21 and FY22. PAT suffered in FY21 due to higher taxes but profitability is back on track in FY22 and further in H1FY23 with a PAT margin of 23% and 24%, respectively, Ashika said.
It aims to improve EBITDA margins with cost management and higher contribution of value-added services. In terms of valuations, there isn’t much on the table for listing gains and the issue is fully priced, added the brokerage with a ‘neutral’ tag.
KFin Technologies is a leading technology-driven financial services platform. The company provides services and solutions to asset managers and corporate issuers across asset classes in India and provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines and Hong Kong.
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