KFin Technologies Announces Disinvestment of Stake in FPSIPL

KFin Technologies Limited announced in a stock exchange filing that its Board of Directors has approved the disinvestment of the company’s entire 20.95% stake in Fintech Products and Solutions (India) Private Limited (FPSIPL). The definitive agreements for this transaction were signed on July 2, 2024. The company stated that the disinvestment is subject to customary closing conditions.

During the financial year 2023-2024, KFin Technologies absorbed a loss of ₹24.08 million due to FPSIPL, which constitutes 0.74% of the company’s profit before tax. Additionally, the net worth contribution by FPSIPL was a negative 0.002%, attributed to its losses. These figures underline the financial burden FPSIPL has had on KFin Technologies, prompting the decision to divest its stake.

The sale consideration for the transaction is ₹6,50,00,013 (Indian Rupees Six Crore Fifty Lakh and Thirteen Rupees). This sum reflects the valuation of FPSIPL and aims to mitigate the impact of the losses KFin Technologies has endured due to its investment in the subsidiary.

The buyer is PHONE2VOTE India Private Limited. Its registered office is located in Hyderabad. PHONE2VOTE India Private Limited is not associated with the promoter or promoter group of KFin Technologies, ensuring an independent transaction free from internal influences.

This strategic disinvestment allows KFin Technologies to streamline its operations and focus on more profitable and strategic ventures. By shedding the underperforming asset, the company aims to improve its financial health and redirect resources towards areas with better growth potential. The transaction is expected to close following the satisfaction of all customary conditions, marking a new phase in KFin Technologies’ corporate strategy.

In Q4 FY 2024, KFin Technologies Limited reported revenue from operations of ₹2,283.4 million, reflecting a 24.7% year-on-year increase. The profit after tax (PAT) for the same period was ₹744.7 million, marking a 30.6% year-on-year growth.

For the entire fiscal year 2024, the company’s revenue from operations reached ₹8,375.3 million, up 16.3% year-on-year. The PAT for FY 2024 stood at ₹2,460.5 million, an increase of 25.7% year-on-year.

On July 3, 2024, the share price of KFin Technologies Ltd opened at ₹768.70, touching the day’s high at ₹770.00, as of 9:39 AM on the NSE.

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