RK Swamy IPO: 10 things to know before subscribing to the Rs 423-crore issue

Established in 1973, the company is engaged in the business of integrated marketing communications, customer data analysis, full-service market research and syndicated studies

RK Swamy Limited, an integrated marketing services provider in India, is set to enter the primary market with Rs 423.56 crore public offer. The anchor investor bidding opened on March 1 and the IPO will open for subscription on March 4.

Here are the key details of the issue

1.) IPO Dates

The IPO will open for subscription on March 4, 2024 and close on March 6, 2024.

2.) Price Band

The price band for the issue has been fixed at Rs 270-288 per share.

3.) Offer Details

The Rs 423-crore issue is a combination of fresh shares worth Rs 173 crore and an offer-for-sale (OFS) of 87 lakh equity shares by promoters and investors worth Rs 250 crore. Allotment will be on March 7 and credit of shares to depository accounts will be on March 11.

Promoters Srinivasan K Swamy, and Narasimhan Krishnaswamy will be selling 17,88,093 equity shares each in the OFS, while investors Evanston Pioneer Fund LP will be offloading 44,45,714 equity shares and Prem Marketing Ventures LLP 6,78,100 equity shares through OFS.

4.) Objectives of the Issue

The company will spend issue from the proceeds to fund capital expenditure, working capital requirements, investing in IT infrastructure, and establishing new customer experience centres. The rest of the proceeds will be earmarked for general corporate purposes.

5.) Lot Size

Investors can bid for a minimum of 50 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 13,500 (50 (lot size) x Rs 270 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,400.

6.) Company Profile

Established in 1973, the company is engaged in the business of integrated marketing communications, customer data analysis, full-service market research and syndicated studies. R K Swamy is a data-driven, integrated marketing services provider that leverages digital initiatives extensively across all areas of its business.

7.) Financials of the Company

For the year ended March 31 2023, the company reported revenue from operations of Rs 292.6 crore, up 25 percent from the same period the previous year when the company reported a revenue of Rs 234 crore.

8.) Lead Managers

SBI Capital Markets Limited, Iifl Securities Ltd and Motilal Oswal Investment Advisors Limited are the book-running lead managers of the R K SWAMY IPO, while Kfin Technologies Limited is the registrar for the issue.

9.) Key Risks

i.) Digital Marketing and Integrated Marketing Communications form a substantial part of its offerings and hence are the company's major source of income. Any changes in trend could have a material adverse effect on business, revenue growth, results of operations and financial condition.

ii.) Certain services R K offers are dependent on the availability of space or sites for publishing of ads, other media purchases and production costs. An unavailability or significant increase in the prices of such ad space can harm the business.

iii.) R K Swamy collects data from third-party publishers, web browsing platforms or other software developers, and hence would be affected by the availability of customer consent which could potentially result in a decrease in client satisfaction.

10.) Listing Date

R K SWAMY IPO will likely list on BSE and NSE on Tuesday, March 12, 2024.