R K Swamy IPO subscribed 6.01 times

Published on Mar 05, 2024 17:16

The initial public offer (IPO) of R K Swamy received 4,94,64,550 bids for shares as against 82,32,946 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (5 March 2024). The issue was subscribed 6.01 times.

The issue opened for bidding on Monday (4 March 2024) and it will close on Wednesday (6 March 2024). The price band of the IPO is fixed at Rs 270 to 288 per share. An investor can bid for a minimum of 50 equity shares and in multiples thereof.

The IPO comprises fresh issue of equity shares worth up to Rs 173 crore and offer for sale of 87,00,000 equity shares aggregating up to Rs 250.56 crore.

The objectives for the fresh issue includes Rs 54 crore for funding working capital requirement, Rs 10.9 crore for funding capital expenditure for setting up a DVCP Studio, Rs 33.34 crore for funding investment in IT infrastructure development, Rs 21.73 crore for seting up of new CEC and CATI and remaining amount for general corporate purposes.

The promoters of the company are Srinivasan K Swamy and Narasimhan Krishnaswamy. The promoters and promoter group hold an aggregate of 36,915,820 equity shares aggregating to 83.03% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 66.07%.

Ahead of the IPO, R K Swamy on Friday, 1 March 2024 raised Rs 187.22 crore from anchor investors. The board allotted 65 lakh shares at Rs 288 each to 18 anchor investors.

Founded in 1973, R K Swamy is an integrated marketing service group, offering a single-window solution for creative, media, data analytics and market research services. The company is ranked eighth in terms of estimated operating revenue among the integrated matketing communications services in India.

The company offers comprehensive range of services in the following interrelated and complementary business segments: integrated marketing communications; customer data analytics and marketing technology; and full-service market research (including customer experience measurement) and syndicated studies.

The firm reported a net profit of Rs 7.93 crore and sales of Rs 141.10 crore for the six months ended on 30 September 2023.