KFintech Bags Rs 675 Cr From Anchor Investors


KFintech, a financial services platform, 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.

Goldman Sachs (Singapore) Pte, Morgan Stanley Asia (Singapore) Pte, Copthall Mauritius Investment, Citigroup Global Markets Mauritius, Axis Mutual Fund, Sundaram Mutual Fund are among those to which the shares have been allotted.

KFintech 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. It provides services to 24 out of 41 AMCs in India and represents 59 per cent of the country’s market share.

According to the data, out of the total allocation of 1.84 crore equity shares to anchor investors, 69.67 lakh equity shares, or approximately 38 per cent of the total, were allocated to 8 domestic mutual funds through a total of 17 schemes.

General Atlantic Singapore Fund Pte, the company’s existing promoter, will issue a pure offer-for-sale (OFS) of up to Rs 1,500 crore. The company will receive no proceeds from the offer because the promoter will receive the entire amount. At the moment, the promoter and promoter group own 74.37 per cent of the company.

The issue, with a price range of Rs 347-366 per share, will go on sale on December 19 and close on December 21. KFintech is majority-owned by funds managed by General Atlantic, a private equity investor. Kotak Mahindra Bank also has a 9.98 per cent stake in KFintech, which it purchased in 2021.

Approximately 75 per cent of the issue size has been reserved for qualified institutional investors, 15 per cent for non-institutional investors, and 10 per cent for retail investors. Investors can place bids for as few as 40 shares and in multiples of that number.

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