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Introduction:
R K Swamy Limited’s initial public offering (IPO) is a book-built issue of Rs 423.56 crores. It comprises a fresh issue of 0.6 crore shares worth Rs 173.00 crores and an offer for sale of 0.87 crore shares amounting to Rs 250.56 crores.
Issue Details:
| IPO Date | March 4, 2024 to March 6, 2024 |
| Listing Date | [.] |
| Face Value | ₹5 per share |
| Price Band | ₹270 to ₹288 per share |
| Lot Size | 50 Shares |
| Total Issue Size | 14,706,944 shares (aggregating up to ₹423.56 Cr) |
| Fresh Issue | 6,006,944 shares (aggregating up to ₹173.00 Cr) |
| Offer for Sale | 8,700,000 shares of ₹5 (aggregating up to ₹250.56 Cr) |
| Employee Discount | Rs 27 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 44,457,140 |
| Share holding post issue | 50,464,084 |
Reservation Details:
The IPO includes a reservation of up to 287,356 shares for employees, offered at a discount of Rs 27 to the issue price.
Lead Managers and Registrars:
SBI Capital Markets Limited, IIFL Securities Ltd, and Motilal Oswal Investment Advisors Limited are the book running lead managers, while KFin Technologies Limited is the registrar for the issue.
Promoter Holding:
| Share Holding Pre Issue | 83.03% |
The promoters of R K Swamy Limited are Srinivasan K Swamy (Sundar Swamy) and Narasimhan Krishnaswamy (Shekar Swamy).
Financial Information:
Revenue Growth: R K Swamy Limited’s revenue increased by 22.43% between FY2022 and FY2023.
Profit Growth: Profit after tax (PAT) rose by 62.34% during the same period.
Market Capitalization: The market capitalization of R K Swamy IPO is Rs 1453.37 crores.
Business Overview:
Founded in 1973, R K Swamy Limited is engaged in integrated marketing communications, customer data analysis, full-service market research, and syndicated studies. The company is data-driven and leverages digital initiatives extensively across its business. It serves numerous clients across various industries and employs 2,391 people across 12 offices and 12 field offices in 12 cities.
Objects of the Issue:
The net proceeds from the IPO will be utilized for funding working capital requirements, capital expenditure for setting up a digital video content production studio, investment in IT infrastructure development, setting up new customer experience centers, and general corporate purposes.
Conclusion:
Based on its financial track record and market position, R K Swamy Limited’s IPO appears fully priced. Investors may consider parking funds for medium to long-term rewards.
Disclaimer:
This blog is for informational purposes only and should not be construed as investment advice. Investors should conduct their own research before investing in any securities.
