This small-cap stock company engaged in providing technology-driven financial services jumped up to 6 percent on Wednesday after the company announced plans to acquire 100 percent stake in Ascent Fund over the next five years.
Stock Performance
With a market capitalization of Rs 18,206 crore, KFin Technologies Ltd jumped 6 percent to a high of Rs 1066.80 per share compared to its previous closing price of Rs 1007.40.
What Happened
The Board approved plans to acquire a 51 percent stake in Ascent Fund Services (Singapore) Pte. Ltd. This will be done through subscription to new shares and purchase of existing shares for a total consideration of USD 34.68 million.
Over the next five calendar years, KFin will gradually acquire the remaining shares in three equal tranches of 16.33 percent each, ultimately acquiring 100 percent of the share capital of Ascent Fund.
To facilitate this acquisition, KFin Technologies will also set up a wholly owned subsidiary in Singapore and invest up to USD 35 million in it. After incorporation, the subsidiary shall acquire Ascent Fund, and be engaged in the business of providing fund administration, corporate solutions, and financial technology solutions services to global alternative investment managers.
About Ascent Fund
Ascent Fund provides fund administration, corporate solutions and financial technology solutions services to global alternative investment managers. The company operates through its subsidiaries set up globally, covering India, Australia, Japan, UAE, UK, USA and Malaysia.
About Kfin Technologies
KFin Technologies Ltd is engaged in providing services to asset managers and corporate issuers across various asset classes in India. Additionally, it also provides transaction processing solutions for private retirement and mutual funds schemes in the Philippines, Hong Kong, and Malaysia.
Financials
The company reported a 32 percent increase in revenue from Rs 219 crore to Rs 290 crore in Q3 FY24-25. This was accompanied by a 34 percent increase in net profits from Rs 67 crore to Rs 90 crore during the same period.
Written by Shwetha Sairam
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