KFin Technologies IPO was subscribed more than half the total issue size at the end of Day 1 bidding, with institutions already bidding for more than 90% of their quota. KFin Tech’s Rs 1,500-crore IPO opened for subscription today; the bidding ends on Wednesday, 21 December 2022. Two years ago, KFinTech’s rival CAMS shares listed on stock exchanges after a bumper IPO, which was oversubscribed 47 times. CAMS shares have since surged 77% from the issue price.
Retails investors subscribed 25% of their portion. Non institutional investors didn’t show much interest in the issue on Day 1, bidding for only 1% of their portion. In all, KFinTech IPO received bids for 1,29,80,880 shares against the 2,37,75,215 shares offered or 0.55 times. 75% of the IPO is reserved for QIBs, while NIIs can bid for 15% and retail investors for the remaining 10%.
KFinTech IPO details: Price Band, Lot Size, Grey Market Premium
The IPO is entirely an offer-for-sale (OFS). KFin Technologies’ promoter, General Atlantic Singapore Fund, will offload their shares and the company will not receive any of the proceeds from the IPO. The price band for the IPO has been fixed at Rs 347-366 a share. Investors can bid for KFin Tech IPO in lots of 40 shares, and the maximum is 520 shares or 13 lots, which, at the upper end of the price band, totals to Rs 1,90,320 for retail individual investors. KFin Tech shares are trading at a grey market premium (GMP) of Rs 10 per equity share.
Ahead of the IPO opening for subscription, KFin Tech has raised Rs 675 crore from anchor investors at the upper price band of Rs 366 per share. 44 anchor investors invested in the company for 18.44 million equity shares. The shares will be credited to investors with successful bids on 28 December and the issue will list on the bourses on 29 December. The book running lead managers for this IPO are ICICI Securities, Kotak Mahindra Capital, J.P. Morgan India, IIFL Securities and Jefferies India.
KFin Tech IPO: Should you subscribe?
“One can subscribe for long term as it is India’s largest investor solutions provider to Indian mutual funds, based on the number of AMC clients serviced. The company is providing services to 24 out of 41 AMCs in India, representing 59% of the market share based on the number of AMC clients. It is one of only two players of scale in India’s issuer solutions space where the company holds a 46% market share based on the market capitalization of NSE 500 companies,” said Prabhudas Lilladher Advisory Team.