KFin Technologies Subscription Day 3: The initial public offer of KFin Technologies was subscribed 70 per cent on the second day of subscription on Tuesday, led by qualified institutional buyers (QIBs). The public issue will remain open for subscription till December 21. The technology-driven financial services company aims to raise Rs 1,500 crore from its public offer, which is completely OFS (offer for sale) in nature.
KFin Technologies IPO Subscription Status
The offer has garnered bids for 1.66 crore shares against IPO size of 2.37 crore shares, getting subscribed 70 per cent.
Qualified institutional investors, who have been allotted 75 per cent of the offer, have bought 1.02 times the reserved quota.
Retail investors have bought 74 per cent of the portion set aside for them, while there has been muted interest from high networth individuals who have subscribed just 3 per cent of their quota. Up to 15 per cent of the total offer is reserved for high networth individuals and the balance 10 per cent for retail.
The technology-driven financial services platform has already raised Rs 675 crore via anchor book, hence accordingly the offer size has been reduced to 2.37 crore shares from 4.09 crore shares.
KFin Technologies IPO Price Band
The IPO is worth Rs 1,500 crores and the issue price of KFin Technologies IPO is set at Rs 347-366. The company has already raised Rs 675 crore from anchor investors ahead of the IPO.
Retail investors can buy a lot of 40 shares worth Rs 14,640. Maximum 13 lots can be bought worth Rs 1,90,320. Minimum lot for High Net Worth Individual (HNI) is 14, worth Rs 2,04,960. A maximum of 69 lots can be bought by HNI, worth Rs10,10,160.
KFin Technologies IPO GMP
As per market observers, KFin Technologies shares are commanding a premium (GMP) of Rs 3 in the grey market today.
KFin Technologies IPO Lot Size
A bidder will be able to apply for this IPO in lots and one lot will comprise 40 shares of the company. A bidder in retail category can apply for a minimum one lot and maximum 13 lots.
KFin Technologies IPO Allotment & Listing
The finalisation of share allocation is most likely on December 26, 2022. The public issue is proposed for listing on BSE and NSE and likely date for share listing is December 29, 2022.
KFin Technologies IPO: Should you Buy?
Brokerage firms have a mixed review on the issue. A few suggest it to be a long-term player citing its strong position in the duopoly market, whereas others believe it is better to keep off the issue guven its rich valuations and complete OFS status.
“In terms of valuations, the post-issue P/E works out to 41.3x FY22 EPS which is more than its peer CAMS. Both companies have similar EBITDA margins, however, CAMS has better net profit margins. KFin Tech has minimal debt while CAMS operates at zero debt,” said Angel One.
Considering all the factors, we believe this valuation is at expensive levels, it said with a ‘neutral’ rating on the issue.
At the higher price band, KFin is demanding an EV/S multiple of 8.9x, which is a discount to its only listed player in the domestic market, said Choice Broking.
“Considering its asset-light business model with recurring revenue profile and cash flow generating abilities, we assign a ‘subscribe’ rating for the issue,” it added.
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