Keffin Technologies Share Price: Financial services platform Kefin Technologies made a stellar debut on the exchanges on Thursday as they got listed at Rs 369 on the BSE against their issue price of Rs 366. On NSE, the stock was listed at Rs 367, up 0.27%. issue price.
The listing largely met analysts’ expectations due to lower-than-expected IPO Subscription numbers, a completed offer-for-sale issue, and a recent spate of equity market correction.
The listing largely met analysts’ expectations given lower-than-expected IPO subscription numbers, a completed offer-for-sale issue and the recent correction in the equity market.
The initial public offering (IPO) of KFin Technologies was subscribed 2.59 times on the last day of the offer to close on Wednesday, December 21, 2022. The issue received bids for 6,14,67,520 shares against 2,37,75,215 shares on offer. , The price range of the three-day public issue was fixed at Rs 347-366 per share.
The company, which provides services and solutions to asset managers and corporate issuers, has raised Rs 1,500 crore from the public issue, which was entirely an offer for sale by promoter General Atlantic Singapore Fund Pte Ltd.
KFin also provides a range of investor solutions, including transaction origination and processing for mutual funds and private retirement plans in Malaysia, the Philippines and Hong Kong.
The company did well with an asset-light business model, reporting a profit of Rs 148.5 crore for 2021-22 as against a loss of Rs 64.5 crore a year ago. Revenue from operations increased by 33 per cent to Rs 639.5 crore during the same period.
Its profit grew 26 per cent to Rs 85.3 crore for the six months ended September FY2023, and revenue grew 20 per cent to Rs 348.7 crore over the previous year.
This is the sixth listing in the last month of this calendar year. Four out of the last five listings have disappointed investors. Abans Holdings closed in the 20 per cent lower circuit on the listing day, while Landmark Cars, Sula Vineyards and Uniparts India It closed down 6-9 per cent on debut, but Dharamj Crop Guard gained 12 per cent.
Should You Buy, Sell or Hold?
Pravesh Gaur, Senior Technical Analyst, Swastik Investmart Ltd. said that Kefin Technologies opened as flat-to-positive listing at Rs. 367 (+0.27%) over its issue price. The issue received an average response from investors on both institutional and retail side.
It is a leading technology-driven financial services platform. It has the advantage of longer customer relationships, and its asset-light business model is also a plus. However, the company’s financial results have been mixed. It registered a significant growth in revenue in the last 3 years and 6 months. Though the company saw a decline in its margins in FY20 and posted losses in FY21, it has recently recovered and posted strong margins. Secondly, this issue is a full OFS and the company will not receive any income from this IPO.
Therefore, allottees applying for the Public Offer for a listing premium are advised to maintain their Stop Loss at Rs. 340 and wait for further move up to Rs. 380.
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