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KFintech collects Rs 675 Cr from anchor investors

Financial services platform KFintech has raised Rs 675 crore from anchor investors days before its initial share-sale.

The company has decided to allocate over 1.84 crore equity shares to 44 funds at Rs 366 apiece, aggregating the transaction size to Rs 675 crore, according to a circular uploaded on the BSE website on Friday.

Those who have been allotted shares include Goldman Sachs (Singapore) Pte, Morgan Stanley Asia (Singapore) Pte, Copthall Mauritius Investment Ltd, Citigroup Global Markets Mauritius, Pinebridge Global Funds and Pari Washington India Master Fund Ltd.

In addition, Axis Mutual Fund, Sundaram Mutual Fund, Edelweiss Mutual Fund, and UTI Mutual Fund, among others were allocated shares.

Out of the total allocation of 1.84 crore equity shares to anchor investors, 69.67 lakh equity shares, or around 38% of the total were allocated to 8 domestic mutual funds through a total of 17 schemes, the data showed.

The company’s IPO will be a pure offer-for-sale (OFS) of up to Rs 1,500 crore by its existing promoter General Atlantic Singapore Fund Pte Ltd.

The company will not receive any proceeds from the offer, as all of it will go to the promoter.

At present, the promoter and promoter group hold a 74.37% stake in the company.

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The issue, with a price band of Rs 347-366 a share, will open for public subscription on December 19 and conclude on December 21.

KFintech is majority-owned by funds managed by private equity investor General Atlantic. Kotak Mahindra Bank Limited also owns a 9.98% stake in KFintech, which it acquired in 2021.

About 75% of the issue size has been reserved for qualified institutional investors, 15% for non-institutional investors and the remaining 10% for retail investors.

Investors can bid for a minimum of 40 shares and in multiples thereof.

KFintech is an investor and issuer solutions provider, serving asset managers such as mutual funds, alternative investment funds (AIFs), wealth managers, pension funds and corporate issuers, as well as international clients in Southeast Asia and Hong Kong.

It is the country’s largest investor solutions provider to Indian mutual funds based on the number of asset management company (AMC) clients serviced as of September 2022. The firm provides services to 24 out of 41 AMCs in India, representing 59% market share.

ICICI Securities, Kotak Mahindra Capital Company, JP Morgan India, IIFL Securities and Jefferies India are the book-running lead managers to the issue.

The equity shares of the company will be listed on the stock exchanges on December 29.

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