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Business News/ Markets / Ipo/  RK Swamy IPO: Firm mobilises 187 crore from marquee investors in anchor round ahead of issue
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RK Swamy IPO: Firm mobilises ₹187 crore from marquee investors in anchor round ahead of issue

RK Swamy IPO: The marquee investors in the anchor round includd Nippon Life India Trustee, LIC Mutual Fund, Aditya Birla Sun Life Insurance, PineBridge Global Funds, among others.

RK Swamy IPO price band price band has been fixed in the range of ₹270 to ₹288 per equity share of the face value of ₹5. (https://www.rkswamy.com/)Premium
RK Swamy IPO price band price band has been fixed in the range of 270 to 288 per equity share of the face value of 5. (https://www.rkswamy.com/)

RK Swamy IPO: RK Swamy has raised 187 crore from from marquee investors in anchor round on Friday, March 1, ahead of its IPO subscription opening for bidding. RK Swamy IPO opens for subscription on Monday, March 4, 2024 and closes on March 6, 2024. 

The integrated marketing services provider said in a statement on Friday, Marh 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.

Also Read: RK Swamy IPO: Price band set at 270-288 per share; check issue details, key dates, more

RK Swamy IPO details

RK SWAMY IPO is a book built issue of 423.56 crore. The issue is a combination of fresh issue of 0.6 crore shares aggregating to 173.00 crore and offer for sale (OFS) of 0.87 crore shares aggregating to 250.56 crore. The RK Swamy IPO price band is set at 270 to 288 per share per equity share of the face value of 5 each.

The floor price is 54 times the face value of the equity shares and the cap price is 57.60 times the face value of the equity shares. The price to earnings ratio based on diluted EPS for financial year 2023 for the company at the upper end of the price band is 40.96 times. The RK Swamy IPO lot size is 50 equity shares and in multiples of 50 equity shares thereafter.

RK Swamy IPO has reserved not less than 75 per cent of the shares in the public issue for qualified institutional buyers (QIB), not more than 15 per cent for non-institutional Institutional Investors (NII), and not more than 10 per cent 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).

Tentatively, RK Swamy IPO basis of allotment of shares will be finalised on Thursday, March 7, and the company will initiate refunds on Monday, March 11, while the shares will be credited to the demat account of allottees on the same day following refund. RK Swamy share price is likely to be listed on BSE and NSE on Tuesday, March 12.

The book running lead managers of the RK Swamy IPO are SBI Capital Markets Limited, IIFL Securities Ltd, and Motilal Oswal Investment Advisors Limited. The issue's registrar is Kfin Technologies Limited.

RK Swamy Company Details

R K Swamy is an integrated marketing services provider that is data-driven and heavily relies on digital efforts for all aspects of its operations. Between March 31, 2022, and March 31, 2023, R K Swamy's profit after tax (PAT) climbed by 62.34 per cent and its revenue by 22.43 per cent, respectively.

As per the Red Herring Prospectus (RHP), the company's listed peers are Affle (India) Ltd (with a P/E of 66.74), Latent View Analytics Ltd (with a P/E of 63.70), and Vertoz Advertising Ltd (with a P/E of 78.07). 

The net proceeds of the fresh issue are expected to be used for the following:

- Financing the company's working capital needs

-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

-Establishment of new customer experience centres and computer-aided telephone interview centres

-General corporate purposes.

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 01 Mar 2024, 08:49 PM IST
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