Kfin Tech tumbles as 10% stake change hands; Here's the likely seller

Shares of Kfin Technologies Ltd. fell nearly 7 per cent in intraday trade on Tuesday after 10 per cent equity changed hands through multiple block deals shortly after the market opened.

 

Kfin Technologies' stock fell as much as 6.97 per cent during the day to ₹1,040 per share, the biggest intraday loss since April 30 this year. The stock pared losses to trade 5.4 per cent lower at ₹1,057 apiece, compared to a 0.59 per cent decline in Nifty 50 as of 9:43 AM. 

 

Shares of the company snapped two days of gain on Tuesday and have fallen nearly 18 per cent from its recent highs of ₹1,319, which it hit late April. The counter has fallen 30 per cent this year, compared to a 4.6 per cent rise in the benchmark Nifty 50. Kfin Technologies has a total market capitalisation of ₹18,333.76 crore.  Read Stock Market Updates Today LIVE

 

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Block deals

 

The stock took a dive after the company had 17.4 million shares, or 10 per cent equity change hands in six block deals, according to Bloomberg data. The buyers and sellers were not known immediately. 

 

However, according to Monday's Bloomberg report, General Atlantic was looking to offload 11.8 million shares of 6.9 per cent stake of Kfin Tech shares for ₹1,210 crore. The floor price for the block deal was set at ₹1,025 per share, which was 8 per cent discount to the Monday's closing price, the news agency said quoting the term sheet.  

 

Latest acquisition 

 

The company last month announced the acquisition of a 51 per cent stake in Singapore-based Ascent Fund Services Pte. Ltd. for $34.68 million. 

 

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.  

 

About Kfin Tech

 

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, the Philippines and Hong Kong. 

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

 

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