KFin Tech shares rally 6% on acquisition of Singapore-based Ascent Fund

Shares of KFin Technologies rallied nearly 6 per cent on Wednesday after it announced the acquisition of a 51 per cent stake in Singapore-based Ascent Fund Services Pte. Ltd. for $34.68 million.

 

KFin Tech's stock rose as much as 5.9 per cent during the day to ₹1,067 per share. The stock pared gains to trade 4.6 per cent higher at ₹1,053.8 apiece, compared to a 0.36 per cent advance in Nifty 50 as of 2:44 PM. 

 

Shares of the company rose for the second straight day on Wednesday. The counter has fallen 31 per cent this year, compared to a 0.95 per cent fall in the benchmark Nifty50. KFin Tech has a total market capitalisation of ₹18,171.1 crore, according to BSE data.  

 

The acquisition will be undertaken via subscription of 0.76 million ordinary shares of Ascent Fund and a purchase of 4.52 million ordinary shares of Ascent Fund from its existing shareholders, according to an exchange filing on Wednesday. It further said that the company will acquire additional equity shares of Ascent Fund in three equal tranches of 16.33 per cent each over the next five calendar years taking its aggregate shareholding in Ascent Fund to 100 per cent. 

 

To undertake the acquisition, KFin Tech will incorporate a wholly owned subsidiary in Singapore, the statement added. Ascent Fund is engaged in the business of providing fund administration, corporate solutions and financial technology solutions services to global alternative investment managers. 

 

The acquisition is subject to receipt of prior approval from the financial service regulators that govern the business activities. The initial transaction is expected to be completed in three to four months and the additional investments will be made tentatively between the calendar year 2028 and 2030.  

 

KFin Tech is a technology-driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem including asset managers and corporate issuers across asset classes in India. They provide several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia Philippines and Hong Kong.

 

The company reported a 35 per cent year-on-year surge in profit after tax to ₹90.18 crore for three months ended December 2024. It had posted a profit after tax (PAT) of ₹66.83 crore in the year-ago period.