RK Swamy Secures ₹187 Crore Through Anchor Book Ahead IPO

4 Mar 2024 , 08:40 AM

Marketing services provider RK Swamy successfully raised ₹187.22 Crore through its anchor book, which was open for a single day on March 1, just ahead of the impending opening of its IPO. The company’s IPO, valued at ₹424 Crore, is scheduled to commence on March 4, with bidding closing on March 6.

The IPO committee has allocated 65,00,937 equity shares to anchor investors at a rate of ₹288 per share. Notably, Nippon Life India emerged as the top institutional investor, securing ₹50.03 Crore worth of shares, trailed by Aditya Birla Sun Life Insurance Company with ₹20 Crore.

Several renowned investors participated in the anchor book, including Societe Generale, Citigroup Global Markets, Copthall Mauritius Investment, Goldman Sachs, BNP Paribas Financial Markets, LIC Mutual Fund, Pinebridge Global Funds, Bajaj Allianz Life Insurance Company, JM Financial Mutual Fund, and SBI General Insurance Company.

RK Swamy disclosed that three mutual funds applied through seven schemes. The company, known for its comprehensive services encompassing creative, media, data analytics, and market research, aims to raise ₹173 Crore through a fresh issue and ₹250.56 Crore through an offer-for-sale (OFS) of 87 lakh equity shares.

Promoters Srinivasan K Swamy and Narasimhan Krishnaswamy, along with investors Evanston Pioneer Fund LP and Prem Marketing Ventures LLP, will be selling shareholders in the OFS. Notably, Prem Marketing Ventures LLP will exit its stake in the marketing services provider following the issue.

RK Swamy, boasting over five decades of experience in diversified integrated marketing communications services, plans to utilize ₹54 Crore of the net fresh issue proceeds for working capital requirements. 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.

The price band for the IPO is set at ₹270-288 per equity share, with investors allowed to bid for a minimum of 50 equity shares and in multiples of 50 thereafter.