About the Company:
KFin Technologies Ltd is a leading technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem including asset managers and corporate issuers across asset classes in India.
Company provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, Philippines and Hong Kong.
As on September 30, 2022, company is India’s largest investor solutions provider to Indian mutual funds, based on number of AMC clients serviced.
Company is providing services to 24 out of 41 AMCs in India, as on September 30, 2022, representing 59% of market share based on the number of AMC clients.
As on September 30, 2022, company is the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, alternative investment funds (“AIFs”), wealth managers and pension as well as corporate issuers in India, besides servicing overseas clients in South East Asia and Hong Kong.
Company is one of the three operating central record keeping agencies (“CRAs”) for the National Pension System (“NPS”) in India as on September 30, 2022.
Company is the largest issuer solutions provider in India based on number of clients serviced, as on September 30, 2022.
Company is one of the only two players of scale in India’s issuer solutions space where we hold a 46% market share.
Registrar and Transfer Agents (“RTAs”):
Registrar and transfer agents are agencies that record and maintain a complete record of transaction of investors for the benefit of mutual fund houses or listed entities.
In India, Computer Age Management Systems (“CAMS”), Kfin Technologies Limited (“KFintech”) and Link Intime are qualified RTAs (“QRTAs”) which are responsible for the various activities such as:
Registrar to an issue – The registrar to an issue is responsible for collection of applications from investors with respect to an issue, proper maintenance of applications and assisting the corporate body in terms of determining the basis of allotment of securities, finalizing the list of persons entitled to allotment of securities, processing and dispatching allotment letters and executing other related documents in respect of the issue.
Key performance indicators for the issuer solutions for the relevant periods:
Revenue from various services: (in millions)
Product comparison among peer companies:
Did You know?
- Company is India’s largest investor solutions provider to Indian mutual funds, based on number of AMC clients serviced as on September 30, 2022.
- Company is providing services to 24 out of 41 AMCs in India, as on September 30, 2022, representing 59% of market share based on the number of AMC clients.
- Company is the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, AIFs, wealth managers and pension as
well as corporate issuers in India, besides servicing overseas clients in South East Asia and Hong Kong as on September 30, 2022. - Company is servicing 301 funds of 192 asset managers in India as on September 30, 2022, representing 30% market share based on number of AIFs being serviced.
- As on September 30, 2022, out of the 60 AMCs in Malaysia across wholesale funds, unit trust funds and private retirement schemes as specified in the CRISIL Report, company is servicing 18 AMC clients in Malaysia in addition to three clients in Philippines and Hong Kong as on September 30, 2022.
- In addition, company has signed on two new AMCs in Malaysia and one AMC in Singapore that are yet to launch operations as on September 30, 2022.
- Company is the largest issuer solutions provider in India based on number of clients serviced, as on September 30, 2022. Company is one of the only two players of scale in India’s issuer solutions space where we hold a 46% market share based on the market capitalization.
- Company is highly diversified with respect to our offerings and revenue mix as compared to CAMS. Currently, our Mutual Fund business accounts for 67.7% whereas it is 90.2% for CAMS.
Management Team:
- Mr. Vishwanathan Mavila Nair (Designation: Chairman & Non–executive Director)
- Mr. Venkata Satya Naga Sreekanth Nadella (Designation: Managing Director and Chief Executive Officer)
Objectives of the Issue:
Offer for Sale: (Rs.1500 cr )
- Each of the Selling Shareholders will be entitled to the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Positives for the Company:
- Scaled platform with strong track record of growth and market leadership.
- Our diverse multi-asset class platform is well-positioned to benefit from strong growth across large markets in India and South East Asia.
- Unique “platform-as-a-service” business model providing comprehensive end-to-end solutions enabled by technology solutions developed in-house.
- Deeply entrenched, long-standing client relationships with a diversified and expanding client base.
- Asset-light business model with recurring revenue model, high operating leverage, profitability and cash generation.
- Experienced management team, backed by a strong board and marquee shareholders, along with strong culture of compliance.
Financials of the Company:
| (in Crores) | FY 20 | FY 21 | FY 22 | 30th Sept 22 |
|---|---|---|---|---|
| Revenue | 455.2 | 486.1 | 645.5 | 353.7 |
| Net Profit | 3.8 | (-64.3) | 148 | 86.2 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| KFin Technologies Ltd | 10 | 9.36 | 39.10 | 29.99% | 38.45 |
| CAMS Ltd | 10 | 39.37 | 58.73 | 49.32% | 132.43 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 19th December 2022 |
| Issue Closes on:. | 21st December 2022 |
| Issue Price | Rs.347 – 366 |
| Face Value | Rs.10 |
| Retail Category Allocation | 10% |
| Minimum Lot | 40 shares |
| Minimum Investment | Rs.14,640 |
| Issue Constitutes | 24.45% |
| Issue Size | Rs.1500 cr ($180 million) |
| Market Cap | Rs.6133 cr ($ 740 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 4,09,83,606 |
| Equity Shares Prior | 16,75,68,883 |
| Equity Shares after the issue | 16,75,68,883 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 26th December 2022 |
| Initiation of Refunds | on or Before 27th December 2022 |
| Credit of Equity Shares: | on or Before 28th December 2022 |
| Listing Date: | on or Before 29th December 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 9.36 | 39.10 | 29.99% | 38.45 |
| Company Contact Info: |
|---|
| KFin Technologies Limited Selenium, Tower-B Plot No 31 & 32 Financial District, Nanakramguda Serilingampally, Hyderabad Rangareddi- 500032, Telangana, India. Telephone no.: +91 40 7961 5565 Email: compliance.corp@kfintech.com Website: www.kfintech.com |
| IPO Registrar Info: |
|---|
| Bigshare Services Private Limited Office No –S6-2, 6th Floor, Pinnacle Business Park Next to Ahura Centre , Mahakali Caves Road , Andheri (East) Mumbai -400093 Telephone no.: +91 22 62638200 E-mail: kfintechipo@bigshareonline.com Website: www.bigshareonline.com |
