Multibagger stock Kfin Technologies cracked over 7 percent in intra-day deals on Thursday after 6 percent equity in the financial services firm exchanged hands in a block deal at a floor price of ₹720. The floor price was over 3 percent lower than the stock’s previous closing price of ₹744.05.
However, the parties involved in the transaction could not be ascertained.
As per media reports, General Atlantic Singapore Fund, a global private equity firm, plans to sell a 4.1 percent stake, equivalent to 70.17 lakh shares, in KFin Technologies. This sale could potentially increase to 6.8 percent, or 1.17 crore shares. The initial offering size is anticipated to be ₹500 crore, with the possibility of rising to ₹833.3 crore.
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The stock fell as much as 7.3 percent to its day’s low of ₹732.85. Kfin stock is now almost 11 percent away from its 52-week high of ₹821, hit earlier this month on May 2, 2024. Meanwhile, it is still trading 127 percent higher from its 52-week low of ₹322.75, hit on May 31, 2023. The stock has also given multibagger returns in the last 1 year, surging over 125 percent and has advanced over 43 percent in 2024 YTD.
It has shed almost 8 percent in May after an over 22 percent jump in April. It was also 10.5 percent down. However, the stock was positive in the first 2 months of the year 2024, up 10.5 percent in February and 28.5 percent in January.
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General Atlantic, part of the promoter group, holds its shares in KFin Technologies through General Atlantic Singapore Fund Pte and General Atlantic Singapore KFT Pte. According to BSE shareholding data, General Atlantic Singapore Fund owns 38.03 percent of the company, while General Atlantic Singapore KFT owns 0.94 percent. After the transaction, General Atlantic is expected to hold a 31.23 percent stake in KFin Technologies.
Previously, in March, Kotak Mahindra Bank had sold a 2 percent stake in KFin Technologies for ₹208 crore via an open market transaction.
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KFin Technologies, the tech-driven financial firm, reported a 30.6 percent year-on-year (YoY) increase in its profit after tax (PAT), reaching ₹74.5 crore for the quarter, up from ₹57 crore in the same quarter last year. This growth was driven by strong performance across its business verticals.
The company’s revenue from operations surged 25 percent YoY to ₹228.34 crore in Q4FY24, compared to ₹183.13 crore in the corresponding period of the previous fiscal year. Additionally, the company’s margins improved, rising to 39.4 percent from 38.3 percent during the same period.
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KFin Technologies’ board has declared a dividend of ₹5.75 per equity share for FY24, pending shareholders’ approval.
For the full financial year 2023-24 (FY24), KFin Technologies saw its net profit increase by 26 percent YoY to ₹246 crore, while its revenue from operations grew 16.3 percent YoY to ₹837.53 crore.
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Published: 30 May 2024, 10:36 AM IST