Kefin Tech files draft paper for ₹2,400 crore IPO: Key highlights

IPO outright is an offer for sale (OFS) where the shareholder will sell the stake to the tune of the General Atlantic Singapore Fund 2400 crores.

Kotak Mahindra Bank, ICICI Securities, Jefferies, JP Morgan and IIFL Securities are serving as Book Running Lead Managers for the issue.

The purpose of the offer is to complement an offer for sale of equity shares by General Atlantic; Get the benefits of listing equity shares on stock exchanges. KFin will not receive any proceeds from this IPO, as such proceeds will go to General Atlantic.

The face value of the equity shares offered in the IPO is 10 each. However, details like price band, portion reserved for investors category, issue period, and number of equity shares to be offered will be announced in due course. After the IPO, the shares are proposed to be listed on BSE and NSE.

Keffin Technologies is a leading technology-driven financial services platform that provides comprehensive services and solutions to the capital market ecosystem including asset managers and corporate issuers across asset classes in India including the origination and processing of transactions for mutual funds and private retirement plans. Offers multiple investor solutions. Malaysia, Philippines and Hong Kong.

As of January 31, 2022, the company has emerged as the country’s largest investor solutions provider for Indian Mutual Funds by number of AMC clients. The company currently serves 25 out of 42 AMCs in India, representing 60% market share based on the number of AMC customers. The company services 270 funds from 157 asset managers in India as of January 31, 2022, representing a 32% market share based on the number of AIFs being serviced.

The company’s history of profitable growth is reflected in the growth of its Profit, Gross Profit and EBITDA in recent years for the period/year.

KFIN’s revenue grew at a CAGR of 4.42% between FY19, on a proforma basis, and FY21. In addition, its gross profit grew at a CAGR of 15.09% between FY19, on a proforma basis, and FY21. Whereas, in the same period, the operating EBITDA grew at a CAGR of 21.70%. Meanwhile, gross margin increased from 48.73% in FY19 to 59.20% in FY21, while operating EBITDA margin increased from 30.25% in FY19 to 41.09% in FY21, driven by revenue. We benefit from scale efficiencies as mix, operating leverage, adoption of our platform as a service model, higher subscriptions to VAS, optimization of our employee headcount, improved employee productivity and ongoing operational optimization due to our integrated technology stack .

Among its many strategies going forward, KFIN intends to continue to increase the overall share of revenue from the sale of these services to existing and new customers. The company is taking marketing and sales initiatives on its platform to target new customers and expand its customer base. The company is expanding its business in Malaysia and Hong Kong with the acquisition of 10 customers by December 31, 2021. In addition, the company has signed three AMCs in Malaysia and Singapore which are yet to go live. In addition, the company plans to deepen its presence in Southeast Asia and expand its international sales team by adding additional country sales heads in Southeast Asia.

Within domestic mutual fund solutions, the company plans to leverage its differentiated technology with a depth of platform approach and value-added products that are key elements of the new customer acquisition strategy. Within issuer solutions, the company continues to focus sales efforts on behind-the-scenes track record of execution and delivery as well as various value-added products. In addition, Keffin plans to leverage access to talent and existing fintech capabilities in India to deliver next-generation services in such markets in the future.