Financial services platform KFin Technologies has received capital markets regulator Securities and Exchange Board of India's (SEBI) approval to raise ₹2,400 crore through an initial public offering (IPO), sources told news agency PTI on Thursday. The company had filed preliminary IPO papers in March this year.
The IPO will be a pure offer-for-sale (OFS) of up to ₹2,400 crore by its existing promoters General Atlantic Singapore Fund Pte Ltd, which holds a 74.94% stake in the company. The company will not receive any proceeds from the offer as all of it will go to the promoter selling shareholder.
The Securities and Exchange Board of India (Sebi) has approved the initial share sale of KFin Technologies, the sources said.
KFin Technologies is majority-owned by funds managed by private equity investor General Atlantic. Kotak Mahindra Bank Limited also owns 9.98% 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.
KFin is the country's largest investor solutions provider to Indian mutual funds based on the number of asset management company (AMC) clients serviced as on January 31, 2022. The firm provides services to 25 out of 42 AMCs in India, representing 60 per cent market share.
In India, it serves 270 funds from 157 asset managers, accounting for 32% based on the number of AIFs served. Across numerous asset classes, the company has operations in India, Hong Kong, Malaysia and the Philippines, it also has presence in Oman and the Maldives. KFintech is also servicing 19 AMC clients in Malaysia, Philippines and Hong Kong and has signed on three AMCs in Malaysia and Singapore that are yet to go live with it.
ICICI Securities, Kotak Mahindra Capital Company, JP Morgan India, IIFL Securities and Jefferies India are the book running lead managers to the issue.