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Business News/ Markets / Ipo/  RK Swamy IPO fully subscribed: GMP, review, subscription status, price, date, other details. Apply or not?
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RK Swamy IPO fully subscribed: GMP, review, subscription status, price, date, other details. Apply or not?

RK Swamy IPO GMP: Shares of the company are available in the grey market at a premium of ₹58, say market observers

RK Swamy IPO price: The company has fixed price band of the book build issue at ₹270 to ₹288 per equity share. (Photo: Courtesy company website)Premium
RK Swamy IPO price: The company has fixed price band of the book build issue at 270 to 288 per equity share. (Photo: Courtesy company website)

RK Swamy IPO: The initial public offering (IPO) of RK Swamy Limited is going to hit the Indian primary market today. The public issue will remain for subscribers till 6th March 2024. The integrated marketing communications company has fixed the RK Swamy IPO price band at 270 to 288 per equity share. The company aims to raise 423.56 crore from its book build issue, which is a mix of fresh issues and offers for sale (OFS). The company aims to raise 173 crore from the issuance of fresh shares whereas the rest 250.56 crore is reserved for OFS. Ahead of the RK Swamy IPO subscription opening date, shares of the company are available for traders in the grey market. According to stock market observers, RK Swamy IPO GMP (grey market premium) today is 58. 

RK Swamy IPO subscription status

By 2:06 PM on day one of bidding, the public issue was subscribed 1.15 times whereas its retail portion was booked 4.75 times. The NII segment was subscribed 1.17 times.

Important RK Swamy IPO details

1] RK Swamy IPO GMP today: Shares of the integrated marketing communications company are available at a premium of 58 in the grey market today, say market observers.

2] RK Swamy IPO price: The company has fixed price band of the book build issue at 270 to 288 per equity share.

3] RK Swamy IPO date: The book build issue has opened today and will remain open till 6th March 2024.

Also Read: IPOs This Week: RK Swamy IPO to Pune E-Stock Broking IPO: 8 new issues, 7 listings to keep primary market buzzing

4] RK Swamy IPO size: The company aims to raise 423.56 crore from this public issue, which is a mix of fresh shares and OFS. The company aims to raise 173 crore from the issuance of fresh shares whereas the rest 250.56 crore is reserved for OFS.

Infographic: Courtesy mintgenie
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Infographic: Courtesy mintgenie

5] RK Swamy IPO lot size: A bidder will be able to apply in lots and one lot of the public issue comprises 50 company shares.

6] RK Swamy IPO allotment date: Finalization of share allocation can be expected on 7th March 2024.

7] RK Swamy IPO registrar: KFin Technologies has been appointed as the official registrar of this book build issue.

8] RK Swamy IPO listing: The initial public offer is proposed for listing on BSE and NSE.

9] RK Swamy IPO listing date: The book build issue may be listed on the BSE and NSE on 11th March 2024 i.e. on Monday next week.

RK Swamy IPO: Good or bad for investors?

10] RK Swamy IPO review: Giving a 'subscribe' ta to the public issue, Dhruv Mudaraddi, Research Analyst at Stoxbox said, "We assign a “SUBSCRIBE" rating to the issue as the company, with its integrated marketing services approach, is strategically positioned to capitalize on India's burgeoning digital infrastructure growth spurred by initiatives like the 'Digital India' campaign and the expansion of 4G/5G networks. Over the past three years, R K Swamy Ltd. has demonstrated robust revenue growth, with sales increasing by nearly 70% in the last two years alone. The company's profitability metrics reflect this growth trajectory, with net profit margins reaching 10.7% in FY23 and marked a ten-fold increase in net profit over the past two years. Moreover, the impressive ROE of 69.1% and ROA of 10.0% underscore the company's efficient utilization of resources and strong profitability. From a valuation perspective, R K Swamy Ltd.'s P/E ratio of 41x, based on FY23 earnings, is reasonable considering the industry average P/E of 69x."

"The inherent nature of the digital marketing analytics business is such that it entails higher initial risk followed by a phased replication model upon successful roll-out. While the IPO presents an opportunity for substantial returns, investors must be prepared for potential cyclical returns and a longer investment horizon," the StoxBox expert said.

BP Equities has also given a 'subscribe' tag to the RK Swamy IPO saying, "From a valuation perspective, RK Swamy Ltd.'s P/E ratio of 41x, based on FY23 earnings, is reasonable considering the industry average P/E of 69x. The inherent nature of the digital marketing analytics business is such that it entails higher initial risk followed by a phased replication model upon successful rollout. While the IPO presents an opportunity for substantial returns, investors must be prepared for potential cyclical returns and a longer investment horizon. Based on the above positives, we give the issue a “SUBSCRIBE" rating."

Canara Bank Securities, Reliance Securities, and Ventura Securities have also given a 'buy' tag to this public issue whereas SMC Global has given a 'neutral' tag to the book build issue.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.so

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 04 Mar 2024, 09:19 AM IST
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