General Atlantic may sell up to 6.8% stake in KFin Technologies

30 May 2024 , 10:56 AM

Global private equity firm General Atlantic will sell up to a 6.8% stake in KFin Technologies in an open market transaction on Thursday.

The base size of the sale is 70.17 lakh shares, representing a 4.1% stake in the company, with the option to raise to 1.17 Crore shares or 6.8% of today’s equity.

The stake sale is expected to have a floor price of ₹712.50 per share, representing a 4% discount from the current market price of ₹742.10. The base issue size is expected to be ₹500 Crore, with an upsized value of ₹833.3 Crore.

There will be a lock-in period of 60 days following the transaction. General Atlantic will retain a 31.23% share in the company following the sale.

General Atlantic is a member of the promoter group and has an interest in KFin Technologies through two entities: General Atlantic Singapore Fund Pte and General Atlantic Singapore KFT Pte Ltd.

In April, the tech-based financial services firm announced a 30.6% increase in earnings after tax to ₹74.5 Crore for the three months ending March 2024, led by expansion across business verticals.

In comparison, the company’s PAT in the previous corresponding quarter was ₹57 Crore, according to a statement.

Revenue from operations increased by 25% to ₹228.34 Crore in the January-March quarter of fiscal year (FY) 2023-24, up from ₹183.13 Crore in the previous year.

The company’s board declared a dividend of ₹5.75 per equity share for FY24.

KFin Technologies supports the vital needs of asset managers, including mutual funds, AIFs (alternative investment funds), pension funds, wealth managers, and corporations in India and worldwide.

At around 10.28 AM, KFin Technologies was trading 6.86% lower at ₹692.90, against the previous close of ₹743.90 on NSE. The counter touched an intraday high and low of ₹734, and ₹689, respectively.

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