KFintech, which has been the registrant for several of the recent initial public offerings (IPOs), is said to be planning to float its own issue on the stock markets.
The firm acts as a registrant and transfer agent for mutual funds, PMS-AIFs, and initial public offerings (IPOs). It also offers technological solutions to financial sector participants, as well as recordkeeping services to various enterprises and the National Pension System.
KFintech IPO: Financial Snapshot
|KFintech||March 2021 ( INR in Lakhs)||March 2020 ( INR in Lakhs)|
|Total comprehensive (loss)/ income||6,695.80||460.88|
In an interview to ETMarkets.com, Sreekanth Nadella, CEO of KFin Technologies, stated, “Different stakeholders Actively exploring KFintech IPO, and probably sometime next year would be the aim, subject to markets and a lot of factors, but absolutely it is on the cards.” Based on his comments we understand that the Kfintech IPO status will be clear to all of us soon in the coming year.
“These are time-consuming operations that take a long time to complete. Our intention is clear, but we hope to be able to do so in 2022,” he added.
KFintech IPO: Key Highlights
General Atlantic, a US-based investment business, is also a shareholder in the company. The goal of the exercise was to bring on a “high-profile institutional investor”. Though the corporation is not seeking any more investments of this kind.
The funds acquired from the Kotak purchase would be used mostly for mergers and acquisitions, according to KFintech. “We’ve taken over a few businesses and effectively incorporated them into our company, allowing us to expand. We want to utilize some of the funds to pursue future mergers and acquisitions,” he said to ETMarkets. Nadella went on to say that some of the cash would be used to pay down debt on the company’s balance sheet.
KFintech claims to be Southeast Asia’s leading registration and transferring agency. It is also India’s biggest of its kind. KFin services 25 of 44 Indian Mutual Fund AMCs, over 300 AIF schemes, and holds records for INR 11 lakh crore of AUM and handles over 10 million transactions every day, according to its website.
MFCentral, an ambitious initiative that KFintech began with CAMS, will begin processing commercial transactions in the next three months, according to Nadella. That is, investors will be able to purchase and sell mutual funds directly via the app from any asset manager. It currently simply displays portfolio data. KFintech provides a variety of services.
- Processing of initial public offerings (IPOs).
- Servicing of shareholders.
- Having an impact on company decisions.
- Information services for investors.
Blockchain is a bullish market
In the specified interview, Nadella also commented about the blockchain. Nadella was upbeat about the industry’s adoption of blockchain technology, but he cautioned that it would need a team effort. He believes that one corporation cannot achieve such a turnaround on its own.
“It necessitates the use of the same blockchain platform by the whole ecosystem. Mutual fund activities on blockchain, for example, would need a depository, exchanges, distributors, asset management firms, and virtually everyone else who is involved in the execution of any transaction on that platform,” according to Nadella.
He believes that such a shift would most likely be led by regulators.