RK Swamy IPO: Retail Investors Drive 2.69x Oversubscription on Day 1

4 Mar 2024 , 12:14 PM

On March 4, the inaugural day of bidding, the initial public offering (IPO) of marketing communications firm RK Swamy garnered a subscription rate of 64%. Notably, the retail portion was oversubscribed by 2.69 times, while non-institutional investors bid for 62% of their allotted share quota. The reserved portion for employees witnessed an 18% subscription rate. Click here to subscribe the IPO.

Valued at ₹423.56 Crore, the IPO comprises a fresh issue of 60.06 lakh shares amounting to ₹173 Crore and an offer-for-sale of 87 lakh shares totaling ₹250.56 Crore. The bidding, slated to conclude on March 6, is being offered at a price band of ₹270-288 per share. The company’s promoters are Srinivasan K Swamy and Narasimhan Krishnaswamy.

Qualified institutional buyers have been allotted up to 75% of the issue, while 10% has been earmarked for retail investors, with the remaining 15% designated for non-institutional investors.

Prior to the IPO launch, RK Swamy successfully raised ₹187.22 Crore through its anchor book on March 1. Noteworthy investors included Nippon Life India and Aditya Birla Sun Life Insurance Company, securing shares valued at ₹50.03 Crore and ₹20 Crore, respectively.

With over five decades of expertise in diversified integrated marketing communications services, RK Swamy plans to utilize ₹54 Crore from the net fresh issue proceeds for working capital necessities. Additionally, ₹10.98 Crore will be allocated for establishing a DVCP studio, ₹33.34 Crore for investment in IT infrastructure development, and ₹21.74 Crore for the setup of new CEC and CATI facilities.