Shares of KFin Technologies Ltd rallied over 8% to ₹1,140.70 on Wednesday’s session after the company unveiled a strategic international expansion plan involving the formation of a wholly owned subsidiary in Singapore and the acquisition of a 51% stake in Ascent Fund Services (Singapore) Pte. Ltd.
The stock opened strong and maintained upward momentum, rising from a previous close of ₹1,052.40. As of 10:15 AM, it was trading as one of the top gainers on the NSE.
Acquisition Details:
KFin’s board approved an investment of up to USD 35 million into the newly incorporated Singapore entity, which will be used to facilitate the acquisition. The company will acquire 51% of Ascent Fund through a mix of fresh equity subscription and share purchase from existing shareholders, totaling approximately USD 34.68 million.
Ascent Fund is a global fund administrator serving 576 funds across 260+ asset managers, with a presence in over 13 countries, including Singapore, UAE, the US, UK, and India. In FY24, it posted a turnover of USD 13.32 million.
KFin also has plans to acquire the remaining 49% stake in three equal tranches by 2030, subject to regulatory and valuation-based terms.
Strategic Impact:
This acquisition marks a significant step in KFin’s vision to become a global leader in fund administration and fintech services, expanding its service offerings and geographical footprint.
At the time of reporting, the stock was trading in the ₹1,066.50 – ₹1,144.80 day range, with a market cap of ₹196.04 billion, a P/E ratio of 61.08, and an average volume of 956.89K.
