KFin Technologies shares had a muted listing on the bourses on Thursday after the IPO closed last week. The shares opened flat amid a negative domestic market. The shares listed at Rs 369 on the BSE before falling 3%, as compared to the public issue price of Rs 366. After falling intraday, KFintech’s shares recovered to close 0.5% lower than the issue price at Rs 364. The market predicted a muted listing ahead of the company’s debut since KFin Tech’s shares were trading at a Rs 5 discount on the grey market.

“KFin Technologies has debuted as a flat-to-positive listing at Rs. 367 ( 0.27%) on the NSE to its issue price. The issue had also received an average response from investors on both the institutional and retail sides. It is a leading technology-driven financial services platform. It has the advantage of longstanding client relationships, and its asset-light business model is also a plus. However, the company’s financial results have been mixed. It reported a significant increase in revenue over the last 3 years and 6 months. However, the company’s margins declined in FY20, and it also incurred a loss in FY21, but it recovered and generated strong margins recently. Secondly, this issue is complete OFS and the company will not receive any proceeds from this IPO. So, allottees who applied for the public offering for listing premium are advised to maintain their stop loss at Rs. 340 and wait for further upside till Rs. 380,” 

KFintech’s public issue of Rs 1,500 crore was fully subscribed 2.59 times by the time the IPO closed for bids. Qualified Institutional Buyers (QIBs) showcased the highest interest, bidding 417% for the portion reserved for them, while retail investors subscribed 1.36 times. Non institutional investors demonstrated lackluster interest as only 23% of their quota was subscribed by the time the issue closed.

The company fixed the IPO price band at Rs 347 – 366 per equity share. KFintech aimed to raise Rs 1,500 crore from this IPO. The company’s issue was completely an offer for sale by one of the promoters, General Atlantic Singapore Fund, which will receive all the issue proceeds. The company will not receive any funds from the IPO. KFin Technologies provides transaction origination and processing for mutual funds and private retirement schemes. Ahead of the IPO opening for subscription, KFintech 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.

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 prior to the listing.