RK Swamy IPO Day 2: Issue subscribed 5.41 times

5 Mar 2024 , 12:48 PM

The initial public offering (IPO) of marketing communications firm RK Swamy witnessed strong demand, with subscription levels reaching 2.19 times on March 4, the first day of bidding, and increasing to 3.72 times on day 2. Notably, the retail portion was oversubscribed by 12.82 times, while the portion reserved for non-institutional investors received bids 5.41 times its quota. Additionally, a portion allocated for employees was subscribed 1.08 times. Click here to subscribe the IPO.

The Rs 423.56 crore IPO consists of a fresh issue of 60.06 lakh shares worth Rs 173 crore and an offer-for-sale of 87 lakh shares worth Rs 250.56 crore. The price band for the offer, closing on March 6, has been set at Rs 270-288 per share. Promoters Srinivasan K Swamy and Narasimhan Krishnaswamy are leading the offering.

Ahead of the IPO, the company raised Rs 187.22 crore through its anchor book on March 1. With over five decades of experience in diversified integrated marketing communications services, RK Swamy plans to allocate Rs 54 crore of the net fresh issue proceeds for working capital requirements. Additionally, Rs 10.98 crore will be utilized for setting up a DVCP studio, Rs 33.34 crore for investment in IT infrastructure development, and Rs 21.74 crore for establishing new CEC and CATI facilities.