KFin Technologies block deal: Stock drops 7% amid heavy turnover

Shares of KFin Technologies Ltd (KFin Tech) tumbled 7 per cent in Tuesday's trade amid a media report suggesting 10 per cent equity changed hands on the counter in a block deal at Rs 1,045 apiece.

Following the development, the KFin Tech stock fell 6.85 per cent to hit a low of Rs 1,041 on BSE. This took the year-to-date fall for the scrip to 31 per cent. The stock witnessed a turnover of Rs 2,331.28 crore on NSE so far.

While a few reports earlier suggested that promoter General Atlantic Singapore Fund Pte was looking to sell 6.9 per cent of 1.18 crore shares in the company today, CNBC TV 18 suggested a total of 10 per cent equity changes hands today. Business Today cannot independently verify the report.

The floor price was earlier said to be fixed at Rs 1,025 per share, representing a 8.3 per cent discount to KFin Tech's previous close.

General Atlantic Singapore Fund Pte. Ltd is the a promoter entity of KFin Technologies, which along with General Atlantic Singapore KFT Pte Ltd, owned 32.91 per cent stake in the financial services firm.

In December 2022, KFin Technologies promoters raised a total of Rs 1,500 crore via IPO via an offer-for-sale (OFS). 

In a note dated April 29, MOFSL stated that structural tailwinds in the mutual fund industry are expected to drive strong growth in KFin Tech’s mutual fund revenue.

“With its unique ‘platform-as-a-service’ model delivering comprehensive, end-to-end solutions backed by proprietary technology, KFin Tech is well-positioned to capitalize on substantial growth opportunities in both domestic and international markets,” MOFSL noted.

The brokerage highlighted that KFin Tech’s recent strategic investment in Ascent Fund Services marked a key milestone, making it the first India-based global fund administrator.

“This acquisition opens doors to a diversified client portfolio across various geographies, a seasoned leadership team, and significant growth potential. By combining Ascent’s strength in client acquisition with KFin Tech’s technological capabilities and its strategic partnership with BlackRock’s Aladdin Provider Network, the company is poised to achieve sustained growth and expand its market share across key segments,” MOFSL said.

Meanwhile, Nuvama valued KFin Tech using a sum-of-the-parts (SOTP) approach, raising its FY27E-based target price to Rs 1,443 from Rs 1,230. The firm cited the Ascent acquisition, a strong deal pipeline, and potential for EBITDA margin expansion as reasons for maintaining its ‘BUY’ rating as of April 29.