The initial public offering (IPO) of KFin Technologies was booked 20 per cent so far on the first day (Day 1) of issuance. The Qualified Institutional Buyers (QIBs) category got a 32 per cent subscription while the Retail Individual Investors (RIIs) portion was booked 12 per cent by 1:18 pm on Monday.
The offer-for-sale (OFS) by existing promoter General Atlantic Singapore Fund is sold in the Rs 347-Rs 366 price band.
Ahead of its IPO, the financial services platform raised Rs 675 crore from anchor investors.
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Grey market premium
Market participants said KFin Tech IPO grey market premium (GMP) was last seen as nil. It implied that the grey market expected the company to witness a muted listing.
KFin Tech is India’s largest investor solutions provider to Indian mutual funds, based on the number of AMC (Asset Management Company) clients serviced as on September 30.
It is providing services to 24 out of 41 AMCs in India, as on September 30, representing 59 per cent of the market share based on the number of AMC clients. In addition, it signed on two new AMCs that were yet to launch operations as on September 30.
Brokerage view
* KFin Technologies has an asset-light business model with a recurring revenue model, high operating leverage, profitability and cash generation, said Anand Rathi, which said the issue is valued at 41.3 times its FY22 earnings at the upper end of the IPO price band.
* The valuation of the IPO appears to be reasonable when we compare it with listed peers, it said.
* KR Choksey has recommended a ‘Neutral’ rating for the IPO.
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* SMC has assigned two out of five stars to the issue. A long-term investor may opt for the issue, it said.
* Prabhudas Lilladher said one can subscribe for the long term as it is India’s largest investor solutions provider to Indian mutual funds, based on the number of AMC clients serviced.
