RK Swamy IPO: Issue subscribed 2.19 times, retail portion booked 7.87x times on Day 1

RK Swamy IPO: The company aims to raise Rs 423.56 crore via IPO

The initial public offering of marketing communications firm RK Swamy was subscribed 2.19 times on March 4, the first day of bidding. The retail portion was booked 7.87 times and non-institutional investors had bid 2.97 of their allotted quota of shares.

Qualified institutional buyers picked 1 percent shares of the allotted quota, while employees bid 58 percent of the portion set aside for them.

The Rs 423.56 crore IPO comprises a fresh issue of 60.06 lakh shares worth Rs 173 crore and an offer-for-sale of 87 lakh shares worth Rs 250.56 crore.

The price band for the offer, which closes on March 6, has been fixed at Rs 270-288 per share. The promoters of the company are Srinivasan K Swamy and Narasimhan Krishnaswamy.

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

Up to 75 percent of the issue has been reserved for qualified institutional buyers, 10 percent for retail investors, and the remaining 15 percent for non-institutional investors.

Ahead of the IPO, the company raised Rs 187.22 crore through its anchor book on March 1. Nippon Life India was the largest institutional investor in the anchor book, picking Rs 50.03 crore worth of shares followed by Aditya Birla Sun Life Insurance Company, which bought Rs 20 crore worth of shares.

Societe Generale, Citigroup Global Markets, Copthall Mauritius Investment, Goldman Sachs, BNP Paribas Financial Markets, LIC Mutual Fund, Pinebridge Global Funds, Bajaj Allianz Life Insurance Company, JM Financial Mutual Fund, and SBI General Insurance Company were the other investors participated in the anchor book.

Also Read: R K Swamy IPO: Should you get creative with your portfolio?

RK Swamy, with more than five decades of experience in diversified integrated marketing communications services, will spend Rs 54 crore of the net fresh issue proceeds for working capital requirements. A sum of Rs 10.98 crore will be used for setting up a DVCP studio, Rs 33.34 crore for investment in IT infrastructure development, and Rs 21.74 crore for setting up of new CEC and CATI of the company.