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Business News/ Markets / Ipo/  RK Swamy IPO: Issue subscribed 2.19 times on day 1 led by retail investors; check GMP

RK Swamy IPO: Issue subscribed 2.19 times on day 1 led by retail investors; check GMP

  • RK Swamy IPO comprises fresh issue of 173 crore and offer-for-sale of up to 8,700,000 equity shares. Selling shareholders include Srinivasan K Swamy, Narasimhan Krishnaswamy, Evanston Pioneer Fund L.P., and Prem Marketing Ventures LLP. Net proceeds to be used for various purposes.

RK Swamy IPO has opened for subscription today (Monday, March 4), and will close on Wednesday, March 6.

RK Swamy IPO subscription status: The RK Swamy IPO got off to an impressive start on its first day of opening, with its retail portion being fully subscribed within the first hour of opening. The overall, RK Swamy IPO subscription status was 2.19 times, as per BSE data. RK Swamy IPO retail investors portion has been subscribed 7.87 times, Non Institutional Investors (NII) portion is booked 2.97 times, and Qualified Institutional Buyers (QIB) portion is booked 1%. The employee portion has been subscribed 58%.

Also Read: RK Swamy IPO opens today: GMP, review, subscription status, price, date, other details. Apply or not?

RK Swamy IPO has opened for subscription today (Monday, March 4), and will close on Wednesday, March 6. The price band has been fixed in the range of 270 to 288 per equity share of the face value of 5. RK Swamy IPO lot size is 50 equity shares and in multiples of 50 equity shares thereafter.

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.

Group CEO and Whole Time Director Narasimhan Krishnaswamy said today in an interview with CNBC-TV18 that their company has been boostrapped for the past 50 years and that they now need to accelerate and reset.

Krishnaswamy clarified in the interview that their revenue usually comes from H1 at 40% and H2 at 60%. The gross margin approaches 68%. The expanding clientele, new business, and regional expansion strategies will propel growth. In general, the margin is higher in H2. Updates to the technology will increase operational effectiveness.

Also Read: RK Swamy IPO to open on Monday: GMP, issue details, 10 key things to know before subscribing to 424 crore issue

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RK Swamy IPO details.

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 employee portion has been reserved equity shares aggregating up to 7.50 crores. The employee discount comes in at 27 per share.

RK Swamy IPO subscription status

RK Swamy IPO has received bids for 1,80,08,750 shares against 82,32,946 shares on offer, according to data from the BSE.

RK Swamy IPO retail investors' portion received bids for 1,13,64,250 shares against 14,44,652 shares on offer for this segment.

RK Swamy IPO's non-institutional investors' portion received bids for 64,43,800 shares against 21,66,979 on offer for this segment.

RK Swamy IPO 's QIBs portion have received 12,600 shares against 32,800 shares on offer for this segment.

RK Swamy IPO's employee portion have received 1,67,900 shares against 2,87,356 shares on offer for this segment.

Also Read: RK Swamy IPO: Firm mobilises 187 crore from marquee investors in anchor round ahead of issue

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.

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

RK Swamy IPO GMP today

RK Swamy IPO GMP or grey market premium is +90. This indicates RK Swamy share price were trading at a premium of 90 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of RK Swamy share price was indicated at 378 apiece, which is 31.25% higher than the IPO price of 288.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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

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