Shares of KFin Technologies saw a muted listing on Monday, as the scrip debuted at Rs 369 on BSE, at a negligible premium over its issue price of Rs 366.
The stock got listed at Rs 367 on NSE.
The tepid listing by the technology-driven financial services platform was no surprise for the Street participants, as the grey market was hinting at debut. Ahead of its listing, the issue was changing hands a discount of up to Rs 5.
As the session progressed, the scrip decline, in line with weakness in the broader market. From a high of Rs 372.40 on BSE, the counter slipped 6 per cent to hit a low of Rs 351.10.
The Rs 1,500 crore initial public offering (IPO) of KFin Technologies was entirely an offer for sale (OFS) of up to 4.1 crore equity by existing promoter General Atlantic Singapore Fund.
Following the listing, analysts remain slightly positive on the issue and advised aggressive investors to hold the stock for long-term horizon. Conservative investors may exit the stock around issue price to protect their capital or minimise the losses, they said.
Astha Jain, Senior Research Analyst at Hem Securities said that if an investor has a strong risk appetite, then they can book profits, but stay partially invested for the long term.
“However, if an investor wishes to protect their investment value in the short term, they can exit near the issue price,” she added with a conviction on the counter in the longer run.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart 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,” he added.
The maiden issue of the company, which was sold in the range of Rs 347-366 apiece, received a muted response from the investors during the three-day bidding process between December 19-21.
The issue was overall subscribed 2.59 times, thanks to qualified institutional bidders, whose allocation was booked 4.17 times, whereas the portion for retail investors was subscribed 1.36 times. However, the quota for non-institutional investors failed to sail through and was booked only 23 per cent.
Incorporated in 2017, KFin Technologies is a leading technology-driven financial services platform, which provides services and solutions to asset managers and corporate issuers across asset classes in India.
The company also provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines and Hong Kong.
Also Read: KFin Technologies stock makes flat debut, market cap rises to Rs 6,183 crore
