RK Swamy IPO to open on March 4; check price band and other details

The initial public offering (IPO) of RK Swamy will open for public bidding on Monday, March 4. The company will be offering its shares in the price band of Rs 27-288 apiece and investors can bid for the issue in the lot size of 50 equity shares and its multiples thereafter. The three-day bidding process will conclude on Wednesday, March 6.

RK Swamy, founded in 1973, is engaged in the business of integrated marketing communications, customer data analysis, full-service market research and syndicated studies. RK Swamy is a data-driven, integrated marketing services provider that leverages digital initiatives.

The IPO includes a fresh share sale of Rs 173 crore and an offer-for-sale (OFS) of up to 87,00,000 equity shares by its promoters Srinivasan K Swamy and Narasimhan Krishnawamy, along with investors such as Evanston Pioneer Fund LP and Prem Marketing Ventures LLP. At the upper end of the price band, the company is looking to raise a total of Rs 423.56 crore.

The net proceeds from the issue would be utilised towards funding working capital requirements; capital expenditure for setting up a digital video content production studio; investment in IT infrastructure development; new customer experience centres; and general corporate purposes.

RK Swamy published more than 818 creative campaigns on behalf of its clients across various media in the financial year 2022-23. It also processed 97.69 terabytes of data and conducted over 2.37 million consumer interviews in the form of quantitative, qualitative and telephone surveys.

Its clientele include Aditya Birla Sun Life AMC, Cera Sanitaryware, Dr. Reddy's Laboratories, EID Parry (India), Fujitsu General (India), Havells India, Hawkins Cookers, Himalaya Wellness Company, Hindustan Petroleum Corporation, ICICI Prudential Life Insurance, IFB Industries, Mahindra and Mahindra, ONGC, Royal Enfield, Shriram Finance, Tata Play, Ultratech Cement and Union Bank of India.

RK Swamy reported a net profit of Rs 7.93 crore and a revenue of Rs 142.55 crore for the period ended on September 30, 2023. The company clocked a net profit at Rs 31.26 crore and sales of Rs 299.91 crore for the financial year ended March 31, 2023.

RK Swamy has reserved shares worth Rs 7.50 crore for eligible employees of the company, who will get a discount of Rs 27 per share during the bidding process. The company will offer 75 per cent of the net offer for the qualified institutional investors (QIBs), while non-institutional investors (NIIs) will get 15 per cent of shares. Retail investors will get 10 per cent of the net offer.

SBI Capital Markets, IIFL Securities and Motilal Oswal Investment Advisors are the book running lead managers of the RK Swamy IPO, while Kfin Technologies is the registrar for the issue. Shares of the company are set to list at Dalal Street on March 12, Tuesday, 2024 on both BSE and NSE.

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