RK Swamy Ltd Gears Up for IPO on March 4th, Sets Price Band at ₹270-288 per share

1 Mar 2024 , 10:09 AM

India’s dynamic market landscape is witnessing a significant stride as RK Swamy Ltd, a prominent integrated marketing services provider, gears up for its initial public offering (IPO). Scheduled to open for subscription on March 4, RK Swamy Ltd has set the price band for its IPO at ₹270-288 per share, with a minimum lot size of 50 shares. Retail investors are required to invest a minimum of ₹14,400. 

The IPO comprises a mix of fresh shares worth ₹173 Crore and an offer-for-sale (OFS) of 87 lakh equity shares by promoters and investors. The total issue size at the upper band price stands at ₹423 Crore, with a total market capitalization pegged at ₹1,450 Crore.

Key Dates:

• Anchor investor bidding opens on March 1
• Subscription opens on March 4 and closes on March 6
• Allotment on March 7
• Shares credited to depository accounts on March 11
• Listing on exchanges on March 12

Offer Structure: Promoters Srinivasan K Swamy and Narasimhan Krishnaswamy will be selling a significant portion of equity shares through OFS, alongside investors Evanston Pioneer Fund LP and Prem Marketing Ventures LLP. Post-issue, promoters will own 84.44% shares, with the remaining held by public shareholders.

Utilization of Proceeds: The net proceeds from the fresh issue will be utilized for various purposes including funding working capital requirements, setting up a digital video content production studio, investment in IT infrastructure development, establishing customer experience centers, and for general corporate purposes. This strategic allocation reflects the company’s vision to enhance its operational capabilities and drive growth in key areas.

Company Overview: With a rich legacy spanning over five decades, RK Swamy Ltd has established itself as one of India’s top 10 diversified integrated marketing communication services groups. Its offerings encompass integrated marketing communications, customer data analytics, marketing technology, and full-service market research and syndicated studies. The company’s comprehensive suite of services caters to diverse industry verticals, enabling clients to achieve their marketing objectives efficiently.

Merchant Bankers: SBI Capital Markets, IIFL Capital Services, and Motilal Oswal Investment Advisory serve as the merchant bankers to the issue.