Mirae Asset’s Stake in ‘KFin Technologies Limited’ Surpasses 5%, Rising to 6.11% [fn Market Watch]

[Financial News] Mirae Asset Financial Group has increased its stake in Indian financial infrastructure company KFin Technologies Limited to more than 6%.
The group’s ownership surpassed the 5% threshold for the first time after it acquired a large block of shares offered by global private equity firm General Atlantic (GA). As India’s asset management market expands rapidly, Mirae Asset has increased its investment in a local financial infrastructure company that provides fund administration and investor services.
According to the Indian stock exchanges and local financial industry sources on the 3rd, Mirae Asset Mutual Fund’s holdings in KFin increased from 8,066,349 shares as of the 20th of last month to 10,561,237 shares. Its stake rose by 1.44 percentage points, from 4.67% to 6.11%. The net increase in shares disclosed in the filing was 2,494,888.
Because its stake exceeded 5%, Mirae Asset Mutual Fund became subject to substantial-shareholding disclosure requirements imposed by the Securities and Exchange Board of India (SEBI). On the 21st of last month, KFin disclosed the change in Mirae Asset Mutual Fund’s stake to local exchanges in accordance with the relevant regulations.
The stake increase came as GA sold a large portion of its holdings in KFin. GA’s Singapore fund sold 15,135,135 KFin shares in a block deal on the 20th of last month at 925 rupees per share, or approximately 13,500 won. The total transaction value was about 14 billion rupees, equivalent to approximately 204 billion won.
According to local block-deal data, Mirae Asset Mutual Fund purchased 2,562,162 of those shares at 925 rupees per share. The purchase was worth approximately 2.37 billion rupees, or about 34.5 billion won. Mirae Asset acquired roughly 17% of the total block offered by GA.
The block offered by GA attracted not only Mirae Asset but also a number of local institutional investors, including Invesco Mutual Fund, HSBC Mutual Fund, Kotak Mahindra Mutual Fund, Edelweiss Mutual Fund, and Motilal Oswal Mutual Fund.
The shares sold by GA represented approximately 8.75% of KFin’s total shares outstanding. As of the end of June, GA held a 21.89% stake in KFin.
KFin is a financial infrastructure company that has expanded alongside the growth of India’s capital markets. It provides financial platform services to asset managers and other clients, including mutual fund administration, registrar and transfer services, and investor services. As the asset management market grows, demand for related financial infrastructure—such as fund setup and investor management—also increases.
Meanwhile, Mirae Asset has designated India as a key overseas market and expanded its asset management and securities businesses there. The additional purchase of KFin shares has drawn attention because it increases Mirae Asset’s investment in a financial infrastructure company expected to benefit from the growth of India’s asset management market.
However, this transaction differs from a strategic investment in which Mirae Asset Financial Group directly acquires a stake in KFin to participate in its management. An industry source said, "This was a portfolio investment in KFin’s listed shares, acquired by Mirae Asset Mutual Fund in the course of managing its funds."
[email protected] Hyun-jung Kim Reporter