RK Swamy IPO: Price band set at ₹270-288 per share; check issue details, key dates, more
- RK Swamy IPO price band set at ₹270-288 per share with date of subscription from March 4-6. Allocation to anchor investors on March 1. PE ratio at upper end is 40.96 times.
The 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. The RK Swamy IPO date of subscription is scheduled for Monday, March 4, and will close on Wednesday, March 6. The allocation to anchor investors for the RK Swamy IPO is scheduled to take place on Friday, March 1.
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.
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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.
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 company's promoters are Narasimhan Krishnaswamy (Shekar Swamy) and Srinivasan K. Swamy (Sundar Swamy).
RK Swamy IPO details
RK Swamy IPO comprises a fresh issue of ₹173 crore, and an offer-for-sale (OFS) of up to 8,700,000 equity shares of face value of ₹5 each by the promoters and other investors.
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 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.
The book running lead managers of the R K SWAMY IPO are SBI Capital Markets Limited, Iifl Securities Ltd, and Motilal Oswal Investment Advisors Limited. The issue's registrar is Kfin Technologies Limited.
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% and its revenue by 22.43%, 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).
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