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General Atlantic intends to sell up to a 6.8% stake in KFin Technologies for a base size of ₹500 crore, with an option to increase to ₹833.3 crore. The floor price is set at ₹712.50 per share, a 4% discount.
Global private equity firm General Atlantic is set to divest up to a 6.8% stake in KFin Technologies, a tech-driven financial services firm, through an open market transaction on Thursday.
Explore: KFIN TECHNOLOGIES LIMITED
The base size of the stake sale comprises 70.17 lakh shares, representing 4.1% of the company's equity. There's an option to increase this to 1.17 crore shares, equivalent to 6.8% of the current equity.
The floor price for the stake sale is anticipated to be ₹712.50 per share, indicating a 4% discount from the prevailing market price of ₹742.10 per share. At this floor price, the base issue size is projected to be ₹500 crore, with the potential to reach ₹833.3 crore in an upsized scenario.
Following the transaction, General Atlantic will retain a 31.23% stake in KFin Technologies. Moreover, a mandatory 60-day lock-in period will apply after the sale.
Additional Read: Kfin Technologies Limited IPO Registrar
KFin Technologies reported a significant increase in profit after tax (PAT), reaching ₹74.5 crore for the quarter ending March 2024, marking a 30.6% growth compared to the same period in the preceding fiscal year.
Revenue from operations also surged by 25% to ₹228.34 crore. The company's board declared a dividend of ₹5.75 per equity share for the financial year 2023-24.
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