KFin Technologies shares slide nearly 7% following multiple block deals

Shares of KFin Technologies declined sharply on Tuesday, May 13, tumbling as much as 6.8 percent in intraday trading. The fall followed after equity changed hands in the stock via multiple block deals. As per media reports US-based private equity firm General Atlantic was planning to offload a significant portion of its holdings in the company through block deals.

According to reports, General Atlantic, via its affiliate General Atlantic Singapore Fund Pte, was looking to sell up to 6.9 percent of its stake in KFin Technologies. This amounts to around 1.18 crore shares, which were expected to be offered at a floor price of ₹1,025 per share. The proposed price marks an 8.3 percent discount to KFin’s closing price on Monday.

The total offer size is estimated at ₹1,209.5 crore. Exchange data shows that General Atlantic Singapore Fund Pte is the foreign promoter of KFin Technologies, holding a 31.98 percent stake in the company as of the quarter ending March 2025.

Solid Q4 Performance

The sharp fall in share price comes despite KFin Technologies’ strong financial performance for the fourth quarter of FY25. The company reported a 24 percent year-on-year revenue growth, led by robust gains in issuer solutions and its domestic mutual fund businesses. Profit after tax climbed 14 percent year-on-year, and the firm maintained healthy EBITDA margins of 43 percent despite continuing investments in platform integration and its international expansion strategy.

Jefferies Bullish on KFin Technologies

Global brokerage Jefferies reiterated its ‘Buy’ rating on KFin Technologies, raising its target price to ₹1,460. The brokerage cited strong revenue growth, stable margins, and accelerating traction in global markets as the key positives.

Jefferies also highlighted KFin’s recent acquisition of Ascent Fund Services as a game-changing move. The acquisition enhances KFin’s footprint across 13 international markets and brings in over 260 clients. This deal is expected to increase the contribution of international revenues from the current 12 percent to more than 18 percent, establishing a second growth engine for the company alongside its dominant domestic mutual fund RTA business.

Stock Performance

KFin Technologies' stock dropped to a day’s low of ₹1,041 on Tuesday, nearly 6.8 percent down. The scrip is now over 36 percent below its 52-week high of ₹1,640, which it hit in December 2024. However, it still trades over 70 percent above its 52-week low of ₹610, touched in May 2024.

In the past one year, the stock has gained 49 percent. However, May has been a weak month so far, with the stock shedding more than 12 percent after delivering two straight months of strong gains—16 percent in April and 18 percent in March. Prior to that, the stock had seen steep corrections, falling 20 percent in February and 29 percent in January.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.