RK Swamy IPO opens on March 4: Know subscription date, price band and share allotment

RK Swamy Ltd, an integrated marketing services company, will launch its initial public offering (IPO) on March 4. The public issue subscription window will close on Wednesday, March 6.

The ₹424-crore IPO will be a combination of a fresh issue of 60 lakh shares worth ₹173 crore and an offer for sale (OFS) of 87 lakh shares amounting to ₹250.56 crore.

Ahead of the opening of the IPO, the marketing services company raised ₹187.22 crore in the anchor round on March 1.

Srinivasan K Swamy and Narasimhan Krishnaswamy are the promoters of the company. The promoters' holding in the company before the IPO stands at 83.03%. Other shareholders are Evanston Pioneer Fund LP and Prem Marketing Ventures LLP, who own 15.56% stake together.

Under the offer for sale (OFS) component, Srinivasan K Swamy and Narasimhan Krishnaswamy will offload 17.88 lakh equity shares each. Investors Evanston Pioneer Fund LP will sell 44.45 lakh equity shares and Prem Marketing Ventures LLP 6.78 lakh equity shares via the OFS route.

The company has reserved 75% shares for qualified institutional buyers (QIBs). Non-institutional investors' (NIIs) portion is 15%. Retail investors will receive 10% of the net offer. RK Swamy Ltd has reserved shares worth ₹7.50 crore for eligible employees.

RK Swamy Ltd IPO price band and other details

The RK Swamy Ltd IPO price band has been set at ₹270-288 per equity share for public investors.

The IPO lot size has been fixed at 50 shares, aggregating to a minimum investment of ₹14,400 for retail investors. For small non-institutional investors (sNIIs), the minimum lot size is 14 lots (700 shares), amounting to ₹2,01,600, and for big non-institutional investors (bNIIs), the same is 70 lots (3,500 shares), totalling ₹10,08,000.

Investors can bid for a minimum of 50 shares in a lot and multiple shares thereafter. There is a discount of ₹27 per share for employees.

RK Swamy IPO allotment and listing

RK Swamy IPO share allotment is expected to be finalised on March 7 and credit of shares into the Demat accounts of successful bidders likely to be done on March 11. RK Swamy shares are likely to be listed on BSE and NSE on Tuesday, March 12, 2024.

SBI Capital Markets, IIFL Securities and Motilal Oswal Investment Advisors are the book-running lead managers to the IPO.

RK Swamy IPO objective

The IPO proceeds will be used for setting up digital video content production studios, new customer experience centres and computer-aided telephonic interview centres. The funds will also be used for general corporate purposes.

Additionally, the funds will be used to invest in the development of IT infrastructure of RK Swamy Limited and its subsidiaries, Hansa Research and Hansa Customer Equity.

About RK Swamy Limited

The company is one of India's largest integrated marketing service providers, providing a single window solution for creative, media, data analytics and market research services.

It is one of the top 10 diversified integrated marketing communications services groups operating in India with a comprehensive range of services in integrated marketing communications, customer data analytics and martech, and full-service market research.

Some of the prominent clients of the company are: Aditya Birla Sun Life AMC Limited, Cera Sanitaryware Limited, Dr. Reddy's Laboratories Limited, E.I.D. - Parry (India) Limited, Fujitsu General (India) Private Limited, Gemini Edibles and Fats India Limited.