KFin Technologies IPO Review

Business Overview:

KFin Technologies is a leading technology driven financial services platform Company

KFin Technologies is India’s largest investor solutions provider to Indian mutual funds, based on number of AMC clients serviced and providing services to 24 out of 41 AMCs in India, as on September 30, 2022, representing 59% of market share based on the number of AMC clients.

The company is servicing 301 funds of 192 asset managers in India as on September 30, 2022, representing 30% market share based on number of AIFs being serviced.

The company is one of the three operating central record keeping agencies (“CRAs”) for the National Pension System (“NPS”) in India as on September 30, 2022.

The Company had a 40% and 29% market share based on number of mainboard initial public offerings handled in Fiscal 2022 and six months ended September 30, 2022.

Issue Details:

Objects of the Issue:

The company will not receive any proceeds from the Offer and all such proceeds will go to the Promoter Selling Shareholder.

Key Financials:

We Recommend To Apply for Long-term

Considering the TTM(Sep-22) adjusted EPS of Rs.9.92 on a post-issue basis, the company is going to list at a P/E of 36.90x with a market cap of Rs.61,330 mn. while its peers namely CAMS Ltd are trading at a P/E of 39.20x.

We recommend to apply as the company has a diverse multi-asset servicing platform and is well-positioned to benefit from strong growth across large markets in India and South East Asia. Also, it is available at reasonable valuations as compared to its peer.

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