Talent & Tech company RK Swamy to launch IPO on Mar 4

Marketing services provider RK Swamy sets the price band for its upcoming initial public offering (IPO) at Rs 270-288 per equity share to  raise Rs 423 crore

BILKULONLINE

Ahmedabad, Feb 29: R K Swamy Ltd, a prominent marketing service provider, is set to launch its initial public offering (IPO) from March 4th to March 6th, 2024. The IPO price band is fixed at ₹270 to ₹288 per equity share, with a face value of ₹5 per share. The company aims to raise ₹423 crore through the IPO, which includes a fresh issue of equity shares worth ₹178 crore and an offer for sale (OFS) component of 87 lakh equity shares by existing promoters and investors.

The IPO subscription will open on March 4, with 75% of the equity shares reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 10% for retail individual investors. Additionally, shares worth ₹7.5 crore are reserved for eligible employees at a discounted price of ₹27 per share.

The allotment of shares is expected to be done on March 7, with shares likely to be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on March 12. The IPO proceeds will be utilized for various purposes, including working capital requirements, capital expenditure, and investment in IT infrastructure development.

R K Swamy Ltd has appointed IIFL Securities Ltd, SBI Capital Markets Limited, and Motilal Oswal Investment Advisors Limited as the book-running lead managers for the IPO, with Kfin Technologies Limited serving as the registrar. The company’s strong financial performance, with revenue from operations reaching ₹292.61 crore in FY23 and net profit rising over 62% YoY to ₹31.26 crore, indicates a positive outlook for the IPO.

R K Swamy Ltd is an integrated marketing service provider offering services in three main segments:

1. Integrated Marketing Communications: Providing comprehensive marketing communication solutions to clients, including advertising, branding, digital marketing, and public relations.
2. Customer Data Analytics and Marketing Technology: Offering data analytics services to help clients understand customer behavior and market trends, as well as marketing technology solutions to enhance their marketing campaigns and strategies.
3. Full-Service Market Research and Syndicated Studies: Conducting market research and syndicated studies to provide insights into consumer preferences, market dynamics, and industry trends, helping clients make informed business decisions.

The company’s clientele includes a diverse range of entities, such as Havells India, Hawkins Cookers, Himalaya Wellness Company, Hindustan Petroleum Corporation, ICICI Prudential Life Insurance, Aditya Birla Sun Life AMC, IFB Industries, Mahindra and Mahindra, ONGC, Ultratech Cement, Royal Enfield, and Union Bank of India.

•  R K SWAMY Hansa Group is the largest Indian majority owned integrated marketing services provider in India having more than five decades of experience offering a single-window solution for creative, media, data analytics and market research services.

The IPO subscription will close on March 6, with the allotment of shares expected on March 7. Shares are set to be listed on the National Stock Exchange and BSE on March 12. IIFL Securities Ltd, SBI Capital Markets Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers for the public issue, while Kfin Technologies Limited will serve as the registrar.

• R K Swamy Group has a 15 year track record in the Data Analytics and Marketing Technology segment, with a proven ability of producing digital content at scale, a leader in the business of market research.

Proceeds from the IPO will be utilized for working capital requirements, capital expenditure for a new video content production studio, investment in IT infrastructure development, and new customer experience centers, among other general corporate purposes. With a clientele including renowned entities like Havells India, Hindustan Petroleum Corporation, and ICICI Prudential Life Insurance, R K Swamy Ltd aims to continue its growth trajectory following a strong financial performance, with revenue from operations reaching ₹292.61 crore in FY23, a 24% increase year-on-year, and net profit rising over 62% YoY to ₹31.26 crore.

The proceeds from the IPO will be utilized by R K Swamy Ltd for various purposes, including:

1. Working Capital Requirements: Funding the company’s ongoing operations and day-to-day expenses.
2. Capital Expenditure for New Video Content Production Studio: Investing in infrastructure for the production of video content, likely to expand their service offerings or enhance existing ones.
3. Investment in IT Infrastructure Development: Upgrading and expanding the company’s information technology infrastructure to support its operations and future growth.
4. New Customer Experience Centers: Establishing new customer experience centers to enhance customer engagement and service offerings.
5. General Corporate Purposes: Meeting general corporate expenses and other strategic initiatives aimed at expanding the company’s business and market presence.

Overall, the utilization of the IPO proceeds is intended to support R K Swamy Ltd’s growth strategies and enhance its competitive position in the market.

Sundar Swamy, Chairman and Managing Director of the R K Swamy Limited was in Ahmedabad to brief the media persons regarding the IPO details, on Thursday. He was accompanied by Shekhar Swamy, Group CEO and Whole Time Director of the company, Rajeev Newar, Group CFO and  Debrato Sen of Motilal Oswal Investment Advisors Limited.