RK Swamy IPO: Price band fixed at ₹270 to ₹288 per share, check key details

RK Swamy Ltd IPO price band has been set at ₹270 to ₹288 per equity share at the face value of ₹5 each. The subscription for RK Swamy initial public offering is set to open on March 4.

The RK Swamy IPO subscription will close on Wednesday, March 6. Ahead of the public issue subscription, RK Swamy Ltd will conduct an anchor investor round, with bids opening on March 1.

The public issue consists of a fresh issue of equity shares worth ₹178 crore. There is also an offer for sale (OFS) component of 87 lakh equity shares by existing promoters and investors. The company intends to raise ₹423 crore through the public issue.

RK Swamy IPO date and other key details

Of the total equity shares available in the public issue RK Swamy Ltd has reserved not less than 75% for qualified institutional buyers (QIBs) and 15% for non-institutional investors. The remaining portion of 10% is set aside for retail individual investors.

The company has reserved shares worth ₹7.5 crore for eligible employees. These shares will be offered at a discount of ₹27 per share during the bidding process.

The allotment of shares in RK Swamy IPO is expected to be done on March 7. The company is likely to initiate the refund to non-allottees in the public issue on March 11, followed by the credit of shares into the demat account of successful bidders.

RK Swamy Ltd shares are expected to be listed on the National Stock Exchange and BSE on Tuesday, March 12.

The company has appointed IIFL Securities Ltd, SBI Capital Markets Limited and Motilal Oswal Investment Advisors Limited as the book-running lead managers for the public issue. Kfin Technologies Limited will serve as the registrar for the public issue.

Through OFS component in RK Swamy IPO, promoters Srinivasan K Swamy and Narasimhan Krishnaswamy will be divesting 17,88,093 equity shares each.

Investors Evanston Pioneer Fund LP and Prem Marketing Ventures LLP will also be selling off their stakeholding of 44,45,714 shares and 6,78,100 equity shares respectively.

Post the issue, Prem Marketing Ventures will exit its complete stakeholding in the company.

RK Swamy promoters presently hold 84.44% stake in the company whereas the remaining portion is held by the investors.

Proceeds from the fresh issue of shares in RK Swamy IPO will be used by the company for funding its working capital requirement, capital expenditure for a new video content production studio and investment in IT infrastructure development. A portion of the money raised through the public issue will also be used for new customer experience centres and general corporate purposes of RK Swamy Ltd.

About the company

RK Swamy Ltd is an integrated marketing service provider offering services in three segments— integrated marketing communications, customer data analytics and marketing technology, and full-service market research and syndicated studies.

RK Swamy's clientele includes entities like Havells India, Hawkins Cookers, Himalaya Wellness Company, Hindustan Petroleum Corporation, ICICI Prudential Life Insurance, Aditya Birla Sun Life AMC, IFB Industries, Mahindra and Mahindra ONGC, Ultratech Cement, Royal Enfield and Union Bank of India.

The company posted ₹292.61 crore revenue from operations in FY23, a 24% jump year-on-year. RK Swamy's revenue from operations stood at ₹234.4 crore in FY22. Its net profit rose over 62% YoY to ₹31.26 crore in FY23 from ₹19.25 crore in the previous fiscal year.