R ARIVANANTHAM
CHENNAI, MAR 1
Integrated marketing services firm RK Swamy Ltd on Friday announced it is set to float ₹423-crore Initial Public Offering (IPO) on Monday, March 4. The initial share sale will conclude on March 6 and the bidding for anchor investors will open for a day on Friday, March 1, said Srinivasan K Swamy (Sundar Swamy), Chairman and Managing Director, R K Swamy Limited.
Srinivasan K Swamy announced floating the IPO at a press conference in Chennai. Group CEO And Whole Time Director Narasimhan Krishnaswamy ( Shekar Swamy), and Group CFO Rajeev Newar addressed the media virtually.
Srinivasan K Swamy said that the IPO price band price band has been fixed in the range of ₹270 to ₹288 per equity share of the face value of ₹5. The lot size is 50 equity shares and in multiples of 50 equity shares thereafter.
- The IPO price band price band has been fixed in the range of ₹270 to ₹288 per equity share of the face value of ₹5
- The bidding for anchor investors will open for a day on Friday, March 1
- The initial share sale will conclude on March 6
- The lot size is 50 equity shares and in multiples of 50 equity shares thereafter
The company’s proposed Initial Public Offering (IPO) comprises a fresh issue of shares aggregating up to ₹173 crore and an Offer For Sale (OFS) of up to 87 lakh equity shares of face value of ₹5 each by the promoters and other investors.
RK Swamy IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors.
The company’s promoters are Narasimhan Krishnaswamy (Shekar Swamy) and Srinivasan K. Swamy (Sundar Swamy).
The selling shareholders are Srinivasan K Swamy (will offload 1,788,093 equity shares), Narasimhan Krishnaswamy (will offload 1,788,093 equity shares), Evanston Pioneer Fund L.P. (will offload 4,445,714 equity shares), and Prem Marketing Ventures LLP (will offload 678,100 equity shares).
The integrated marketing services provider said in a statement on Friday, March 1, that it has raised ₹187 crore by allocating 65 Lakh equity shares at ₹288 per equity share (including share premium of ₹283 per equity share).
Out of the total allocation of 65 lakh equity shares to the anchor investors, 28 lakh equity shares, which is 43.82 per cent of the anchor investor portion were allocated to three mutual funds through a total of seven schemes.
The marquee investors include Nippon Life India Trustee, LIC Mutual Fund, Aditya Birla Sun Life Insurance, PineBridge Global Funds, Bajaj Allianz Life Insurance, JM Financial Mutual Fund, SBI General Life Insurance, GAM Multistock Emerging Markets Equity, Societe Generale, Vikasa India EIF I Fund, Citigroup Global Markets Mauritius Private Limited – ODI, Copthall Mauritius Investment Limited – ODI, Goldman Sachs Singapore PTE – ODI, BNP Paribas Financial Markets – ODI.
The net proceeds of the fresh issue are expected to be used for the following: financing the company’s working capital needs; financing capital expenditures that the company will incur to establish a digital video content production studio; financing investments in the development of the company’s IT infrastructure and that of its Material Subsidiaries, Hansa Research and Hansa Customer Equity; financing the establishment of new customer experience centres and computer-aided telephone interview centres; and financing general corporate purposes.
It is among 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.
During FY23, the company released over 818 creative campaigns on behalf of its clients across various media outlets and conducted over 2.37 million consumer interviews across quantitative, qualitative, and telephonic surveys.
According to the CRISIL Report, the marketing services market in India grew at a CAGR of 5.6% between fiscal 2019 and 2023, reaching Rs 1.93 lakh crore in FY23.
SBI Capital Markets, IIFL Securities, and Motilal Oswal Investment Advisors are the book-running lead managers to the issue. The issue’s registrar is Kfin Technologies Limited.
Between March 31, 2022, and March 31, 2023, R K Swamy’s profit after tax (PAT) climbed by 62.34% and its revenue by 22.43%, respectively.
