KFin Technologies Share Price: Financial services platform KFin Technologies made a lacklustre debut on the bourses on Thursday, as they got listed at Rs 369 on BSE, at par to the issue price of Rs 366. On NSE, the stock got listed at Rs 367, up 0.27% over the issue price.
The listing largely met analysts’ expectations, given the lower-than-expected IPO subscription numbers, a complete offer-for-sale issue, and the recent spate of correction in the equity market.
The listing largely met analysts’ expectations, given the lower-than-expected IPO subscription numbers, a complete offer-for-sale issue, and the recent spate of correction in the equity market.
The initial public offering (IPO) of KFin Technologies was subscribed 2.59 times on the last day of offer that closed on Wednesday, December 21, 2022. The issue received bids for 6,14,67,520 shares against 2,37,75,215 shares on offer. The three day public issue’s price range was fixed at Rs 347-366 a share.
The company that provides services and solutions to asset managers and corporate issuers has raised Rs 1,500 crore from the public issue which was entirely an offer-for-sale by promoter General Atlantic Singapore Fund Pte Ltd.
KFin also provides several investor solutions, including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines and Hong Kong.
The company had a good performance with an asset-light business model, recording a profit at Rs 148.5 crore for 2021-22 against a loss of Rs 64.5 crore a year before. Revenue from operations in the same period increased by 33 per cent to Rs 639.5 crore.
Its profit for the six months ended September FY23 grew by 26 per cent to Rs 85.3 crore, and revenue jumped 20 per cent to Rs 348.7 crore over last year.
This is the sixth listing in the last month of this calendar year. Four out of the last five listings disappointed investors. Abans Holdings was locked in at the 20 per cent lower circuit on the listing day, while Landmark Cars, Sula Vineyards, and Uniparts India closed with 6-9 per cent losses on debut, but Dharmaj Crop Guard delivered 12 per cent gains.
Should you Buy, Sell or Hold?
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd., said KFin Technologies has debuted as a flat-to-positive listing at Rs. 367 (+0.27%) to its issue price. The issue had also received an average response from investors on both the institutional and retail sides.
It is a leading technology-driven financial services platform. It has the advantage of longstanding client relationships, and its asset-light business model is also a plus. However, the company’s financial results have been mixed. It reported a significant increase in revenue over the last 3 years and 6 months. However, the company’s margins declined in FY20, and it also incurred a loss in FY21, but it recovered and generated strong margins recently. Secondly, this issue is complete OFS and the company will not receive any proceeds from this IPO.
So, allottees who applied for the public offering for listing premium are advised to maintain their stop loss at Rs. 340 and wait for further upside till Rs. 380.
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