RK Swamy IPO Lists 13% Below Issue Price

12 Mar 2024 , 09:51 AM

R K Swamy’s initial public offering (IPO) of ₹ 423.56 Crore experienced a discount debut on Dalal Street, with shares listing at ₹250 on NSE, 13% below the issue price of ₹288, and at ₹252 on BSE, 12.50% below the issue price.

RK Swamy’s maiden public issue saw potent demand from investors, with subscriptions reaching 25.78 times the offer size on the final day of bidding, March 6.

Retail investors and non-institutional investors (high net worth individuals) led the subscription, with 33.31 times and 34.24 times the allotted quotas, respectively. Qualified institutional buyers also showed significant interest, subscribing 20.58 times the portion allocated to them.

The IPO comprised fresh shares worth ₹ 173 Crore and an offer-for-sale (OFS) of 87 lakh equity shares by promoters and investors, totaling ₹ 250 Crore. Promoters Srinivasan K Swamy and Narasimhan Krishnaswamy, along with investors Evanston Pioneer Fund LP and Prem Marketing Ventures LLP, participated in the OFS.

Proceeds from the IPO will be utilized for various purposes, including funding capital expenditure, meeting working capital requirements, investing in IT infrastructure, and establishing new customer experience centers, along with general corporate purposes.

Founded in 1973, R K Swamy operates in integrated marketing communications, customer data analysis, full-service market research, and syndicated studies.