KFin Tech IPO: Issue subscribed 2.59 times on Day 3; QIB, retail portions fully booked

The initial public offering (IPO) of KFin Technologies was subscribed 2.59 times per cent on the final day (Day 3) of subscription on Wednesday. The initial share sale received bids for 6,14,67,520 shares against 2,37,75,215 shares on offer by 5 pm today, according to BSE data.

The quota meant for Qualified Institutional Buyers (QIBs) was subscribed 4.17 times, while the category for Retail Individual Investors (RIIs) received 1.36 times subscription and non-institutional investors got 23 per cent subscription.

The Rs 1,500-crore IPO had a price range of Rs 347-366 per share. The financial services platform had 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 Technologies is majority-owned by funds managed by private equity investor General Atlantic. Kotak Mahindra Bank Limited also owns a 9.98 per cent stake in KFintech, which it acquired in 2021.

KFintech is an investor and issuer solutions provider, serving asset managers such as mutual funds, Alternative Investment Funds (AIFs), wealth managers, pension funds and corporate issuers, as well as international clients in Southeast Asia and Hong Kong.

It is the country's largest investor solutions provider to Indian mutual funds based on the number of Asset Management Company (AMC) clients serviced as of September 2022.

ICICI Securities, Kotak Mahindra Capital Company, J P Morgan India, IIFL Securities and Jefferies India were the managers to the offer.

Brokerage view

* Anand Rathi said the valuation of the IPO appears to be reasonable when we compare it with listed peers.

* KR Choksey has recommended a 'Neutral' rating for the IPO.

* 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.

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