Block Deal: KFin Technologies shares in focus as General Atlantic eyes to sell 6.9% stake

Shares of KFin Technologies will be in focus during the trading session Tuesday as US-based private equity firm General Atlantic Singapore Fund Pte is likely to offload 6.9 per cent stake in the financial services company through block deals today, suggest some media reports.

The proposed sale by the parent entity shall include 1.18 crore equity shares, which is likely to fetch Rs 1,209.5 crore, said the reports. The floor price is said to be fixed at Rs 1,025 per share, representing a 8.3 per cent discount from its previous close. The stock had settled at Rs 1117.65 on Monday, up 4.86 per cent.

According to the latest shareholding pattern, General Atlantic Singapore owned 5,66,34,603 equity shares, or 32.91 per cent stake in KFin Technologies as of March 31, 2025. Listed in December 2022, Kfin Technologies raised a total of Rs 1,500 crore via IPO, which was entirely an offer-for-sale (OFS) by its promoter General Atlantic Singapore, who sold shares for Rs 366 apiece.

Shares of KFin Technologies are currently 205 per cent above their given IPO price, while General Atlantic Singapore is likely to make a profit of 1,285 per cent through this sale, considering the weighted cost of acquisition of per share at Rs 74.06, as per the RHP of the company, filed in 2022.

KFin Technologies reported a 14.3 per cent year-on-year (YoY) increase in consolidated net profit for the fourth quarter of FY25, at Rs 85 crore. Its revenue from operations rose 23.8 per cent YoY to Rs 282.7 crore, while Ebitda increased 16.9 per cent YoY to Rs 122.2 crore for the quarter. Ebitda margins stood at 43.2 per cent. The board declared a dividend of Rs 7.50 per share.

Following the Q4 results, Motilal Oswal had to cut its earnings estimates for FY26/FY27 by 3 per cent/5 per cent due to lower AUM growth expected this year. "We expect revenue/PAT to post a CAGR of 18 per cent/21 per cent over FY25-27. We maintain a 'neutral' rating on the stock with a one-year target price of Rs 1,150, premised at a P/E multiple of 40x on FY27E earnings," it said.

Kotak Institutional Equities cited stable market share and drop in yields due to lower equity share; strong growth in issuer solutions and international/alternatives with strong deal wins; and stable Ebit margins excluding one-offs as key highlights. "We like the execution but find valuations to be a constraint to wait for better entry points," it added with a 'sell' rating and a target price of Rs 1,050.

Nuvama Institutional Equities valued KFin Tech on an SotP basis by assigning FY27E core segment profits yielding a target price of Rs 1,443 (earlier INR1,230). It had a 'buy' rating on the stock given the ascent acquisition, strong deal pipeline and scope for Ebitda margin expansion. However, B&K Securities had a 'hold' rating on the stock with a target price of Rs 1,200.

Incorporated in 2017, KFin Technologies is a technology-driven financial services platform. It provides services and solutions to asset managers and corporate issuers across asset classes in India and provides several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, the Philippines and Hong Kong.