Kfin Technologies Ltd

Over the last three sessions, the stock has rallied 13.64%. While it is down 5.32% over the past three months, it has still delivered a stellar 85% return in the past year. The stock jumped 4.59% on Wednesday (16 April 2025), after the company announced a definitive agreement to acquire a 51% controlling stake in Singapore-based Ascent Fund Services for $34.7 million. The deal sets a pathway for full ownership over the next five years. Post-transaction, KFintech will become Ascent's sole promoter, with the remaining 49% to be acquired in three equal tranches (16.33% each) at the end of FY28, FY29, and FY30. The transaction awaits customary regulatory approvals. Ascent Fund Services, incorporated in August 2019, is a growing fund administrator serving alternative investment funds across 18 countries. The company operates 23 offices in 13 countries and services 576 funds across 260+ asset managers. Ascent Fund reported revenues of $13.32 million in FY24, up from $10.12 million in FY23. The acquisition will require clearances from key financial authorities'including SEBI, PFRDA, RBI, and various international regulators. KFintech expects the first leg of the deal to wrap up in 3'4 months. KFin Technologies is a leading tech-driven financial services platform that supports the capital markets ecosystem in India and abroad. It offers a wide range of investor and issuer solutions'including fund administration, accounting, data analytics, digital onboarding, and transaction processing'across asset classes like mutual funds, insurance, and pensions. Powered by Capital Market - Live

KFin Technologies has entered into a definitive agreement with Ascent Fund Services (Ascent) to acquire controlling stake of 51% for US$ 34.7 million, with a path to 100% ownership over the next five years. Post this transaction, KFintech will become the sole promoter of Ascent, and the residual 49% stake will be acquired in three equal tranches of 16.33% each after the end of fiscal year 2028, 2029, and 2030 respectively. The transaction is subject to customary regulatory approvals. Headquartered in Singapore, Ascent is a fast growing full-suite global fund administrator, having clients across 18 geographies, serving 260 global alternative asset managers managing 576 funds, across all asset-classes, with US$ 24 billion assets under administration. The Company is backed by strong pedigree of founding team and senior management with multiple decades of industry experience, deep operational expertise and proven track record of continuous client acquisition. The acquisition shall expedite KFintech's entry into the fast growing and large market of global fund administration industry having more than US$12 billion annual revenue pool. Ascent will help KFintech to gain an immediate and scaled access to global fund administration market with requisite licenses / permits to render services across multiple international jurisdictions, diversified portfolio of clients, sticky and recurring revenue, and experienced team possessing strong domain expertise. Ascent's client acquisition and service capability backed by KFintech's technology finesse and operational efficiency will enhance the duo's ability to partner with funds throughout a fund lifecycle, and to become a single point provider of global fund services.Powered by Capital Market - Live

Ascent Fund is an independent and one of the fastest growing full-suite global fund administrators, servicing alternative investment funds across 18 countries, with strong domain expertise backed by an experienced management team. Its turnover was $13.32 million in FY24. The company will acquire a 51% stake in Ascent Fund Services (Singapore) Pte. through a subscription of 763,651 shares and the purchase of 4,533,030 shares from existing shareholders, for a total consideration of $34.68 million. The transaction is expected to be completed within 3'4 months. Additionally, the company will acquire the remaining 49% stake in three equal tranches of 16.33% each over the next five years. The said transaction will be completed in stages tentatively between the calendar year 2028 and 2030. Meanwhile, the company's Singapore subsidiary will be incorporated with the name, KFin Singapore Pte. or such other name as may be approved by the applicable regulatory authorities. After incorporation, the Singapore Subsidiary shall acquire Ascent Fund, and through the Ascent Fund and its subsidiaries, it shall be engaged inter alia in the business of providing fund administration, corporate solutions and financial technology solutions services to global alternative investment managers. The Singapore subsidiary will be capitalized in cash for up to $35 million, in order to enable the Singapore Subsidiary to undertake the aforementioned transaction. KFin Technologies (KFintech) is a leading 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 and provide comprehensive investor solutions including transfer agency, fund administration, fund accounting, data analytics, digital onboarding, transaction origination and processing for alternate investments, mutual funds, unit trusts, insurance investments, and private retirement schemes to global asset managers in Malaysia, Philippines, Singapore, Hong Kong, Thailand and Canada. The company's consolidated net profit jumped 34.9% to Rs 90.18 crore on 32.6% increase in net sales to Rs 290.02 crore in Q3 FY25 over Q3 FY24.Powered by Capital Market - Live

KFin Techs. will hold a meeting of the Board of Directors of the Company on 28 April 2025.Powered by Capital Market - Live

KFin Technologies has allotted 1,37,064 equity shares under ESOP on 10 March 2025. Consequently, the issued, subscribed, and paid-up equity share capital of the Company has increased from Rs. 171,93,84,530/- comprising of 17,19,38,453 equity shares of face value Rs. 10/- each to Rs. 172,07,55,170/- comprising of 17,20,75,517 equity shares of face value Rs. 10/- each.Powered by Capital Market - Live

KFin Technologies has allotted 53,553 equity shares under ESOP on 04 February 2025. Consequently, the issued, subscribed, and paid-up Equity Share capital of the Company has increased from Rs. 171,88,49,000 comprising of 17,18,84,900 equity shares of face value Rs. 10/- each to Rs. 171,93,84,530 comprising of 17,19,38,453 equity shares of face value Rs. 10/- each. Powered by Capital Market - Live

Revenue from operations increased 32.6% year on year (YoY) to Rs 290.02 crore in the quarter ended 31 December 2024. Profit before tax stood at Rs 122.09 crore in the quarter ended 31 December 2024, up 36.5% as against Rs 89.45 crore recorded in Q3 FY24. During the quarter, EBITDA stood at Rs 130.55 crore, registering a growth of 35.35% as against Rs 97.90 crore recorded in Q3 FY24. EBITDA margin improved to 45% in Q3 FY25 as against 44.8% in Q3 FY24. On the segmental front, revenue from domestic mutual fund investor solutions stood at Rs 208.20 crore (up 37.38% YoY), issuer solutions stood at Rs 43.94 crore (up 17.14% YoY), and international and other investor solutions was at Rs 32.87 crore (up 52.24% YoY) during the quarter. On the other hand, global business services revenue declined 38.08% YoY to Rs 4.99 crore during the period under review. On a nine-month basis, the company's consolidated net profit increased 44.28% to Rs 247.57 crore on a 32.64% rise in revenue from operations to Rs 808.05 crore in 9MFY25 over 9MFY24. Sreekanth Nadella, MD and CEO, KFin Technologies, said, 'Our focus on consistent growth and profitability has led to yet another quarter of resilient performance, aided by new client wins internationally and domestically, across our diversified business segments. This is a milestone quarter for KFintech, as we took a giant step in our international journey by joining as the ninth global partner to BlackRock's Aladdin Provider network, a growing community of the world's largest asset servicers. This will enable us to strengthen our differentiated fund administration and accounting services to global large asset managers. Our thrust will continue to design world-class innovative solutions for our clients and deliver service excellence, leveraging unconventional technology stacks and focused business development efforts. As we look forward, we will continue to drive growth, diversification, and market leadership across our businesses. KFin Technologies is engaged in providing service of registrar to the public issue of securities, registrar to the securities transfers, and back office operations to mutual fund houses and data processing activities. Powered by Capital Market - Live

Net profit of KFin Technologies rose 34.94% to Rs 90.18 crore in the quarter ended December 2024 as against Rs 66.83 crore during the previous quarter ended December 2023. Sales rose 32.60% to Rs 290.02 crore in the quarter ended December 2024 as against Rs 218.72 crore during the previous quarter ended December 2023. ParticularsQuarter EndedDec. 2024Dec. 2023% Var. Sales290.02218.72 33 OPM %45.0144.61 - PBDT138.49102.85 35 PBT122.0989.45 36 NP90.1866.83 35 Powered by Capital Market - Live

KFin Technologies has allotted 51,900 equity shares under ESOP on 10 January 2025. Consequently, the issued, subscribed, and paid-up Equity Share capital of the Company has increased from Rs. 171,83,30,000/- comprising of 17,18,33,000 equity shares of face value Rs. 10/- each to Rs. 171,88,49,000/- comprising of 17,18,84,900 equity shares of face value Rs. 10/- each. Powered by Capital Market - Live

KFin Techs. will hold a meeting of the Board of Directors of the Company on 23 January 2025.Powered by Capital Market - Live