Shares of this technology company slumped 9 percent in Friday’s trading session after the promoters planned to sell up to 10 percent of the company. The shares have delivered more than 40 percent returns on a YTD basis to its shareholders.
With a market capitalisation of Rs. 8,639 crores, the shares of KFin Technologies Ltd started Friday’s trading session on a lower note at Rs. 518 compared to its previous close of Rs. 531.80. The share hit a low of Rs. 482, making a loss of around 9 percent and is currently trading at Rs. 504.20 apiece.
According to reports, the Promoter General Atlantic was looking to sell a 6.2 percent stake in the company through a block deal. The report also stated that the global private equity firm could also sell an additional 3.8 percent stake, taking the total stake sale to up to 10 percent.
As per the reports, The floor price is set at Rs 490, which is an 8 per cent discount compared to Thursday’s closing price of the stock. The offer size is likely to be around Rs. 515-833 crores with a 90-day lock-in period. IIFL Securities is believed to be the broker of the deal.
As of September 2023, General Atlantic held a 49.12 percent stake in KFin Technologies, through its entities like General Atlantic Singapore Fund Pte and General Atlantic Singapore KFT Pte Ltd.
Coming onto the company’s financial statement, the revenue increased by around 15 percent from Rs. 182 crores during the June quarter to Rs. 209 crores during the September quarter. In addition, the net profit zoomed by 42 percent from Rs. 43 crores to Rs. 61 crores during the same timeframe.
The company gets revenue from multiple sources, primarily from domestic mutual funds solutions which contribute 67.18 percent of the revenue, 18 percent of the revenue is contributed by issues solutions, 8.87 percent comes from International investors solutions and the remaining 5.91 percent of revenue is contributed by global business.
Headquartered in Hyderabad, KFin Technologies Ltd was incorporated in 2017. The company is a leading technology-driven financial services platform that 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 across the globe.
Written By Vaibhav Patil
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