The capital market regulator, Sebi, has given a go ahead to the initial public offering (IPO) of up to Rs 2,400 crore by KFin Technologies Limited (KFintech), India’s largest investor solutions provider to Indian mutual funds, based on number of AMC clients serviced.
KFintech 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. KFintech’s IPO will be entirely offer for sale (OFS) by its promoter General Atlantic Singapore Fund Pte. Ltd. ICICI Securities Limited is the coordinating lead manager for KFintech’s IPO. After the IPO, the equity shares are proposed to be listed on BSE and NSE.
The company received its observation letter from Sebi on Nov 7, 2022. It filed its draft prospectus with the market regulator dated March 31, 2022. The equity shares offered under the OFS have a face value of Rs 10 per equity share.
ICICI Securities Ltd, Kotak Mahindra Capital Company Ltd, J.P.Morgan India Private Ltd, IIFL Securities Ltd, and Jefferies India Pvt Ltd are acting as the book-running lead managers for the IPO, while Bigshare Services Private Ltd is the registrar of the offer.
KFintech 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 and provide several investor solutions including transaction origination and processing for mutual funds and private retirement schemes to 22 asset managers in Malaysia, Philippines, Singapore and Hong Kong. As on December 31, 2021, the company provides services to 25 out of 42 operational asset management companies (AMCs) in India, representing 60% of market share based on the number of AMC clients, besides, two new AMCs won, that are yet to launch operations, as on January 31, 2022.
The company has on-boarded 15 of the last 20 mutual funds launched in India. KFintech is also the largest issuer solutions provider in India based on the number of clients serviced and hold a 43% market share based on the market capitalization of NSE 500 companies and a 34% market share based on number of clients serviced within NSE 500 companies, as on January 31, 2022.
They also service 270 funds of 157 asset managers in India, representing 32% market share based on number of AIFs being serviced and are also one of the two operating central record keeping agencies (“CRAs”) for the National Pension System (“NPS”) in India, as on January 31, 2022. KFintech also provides a suite of value-added services (VAS) including big data analytics tool – Digix, virtual branch platform, distributor platform, electronic AGM, electronic voting, compliance platform, and mobility solutions.
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