RK Swamy Ltd, an integrated marketing services provider in India, has set the price band at Rs 270-288 a share for its initial public offer that will open for subscription on March 4.
The anchor investor bidding will be open on March 1 and the offer will close on 6th. Allotment will be on March 7 and credit of shares to depository accounts will be on 11th. The stock will be listed on exchanges on March 12.
The IPO will be a mix of fresh shares worth Rs 173 crore, and an offer-for-sale (OFS) of 87 lakh equity shares by promoters and investors.
On the upper band price, the total issue size will be at Rs 423 crore and the total market capitalisation of the firm is pegged at Rs 1,450 crore.
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.
Promoters own 84.44 percent shares in RK Swamy, and the remaining 15.56 percent shares are held by the selling public shareholders Evanston Pioneer Fund LP, and Prem Marketing Ventures LLP. Prem Marketing Ventures LLP will be exiting the marketing services provider after the issue.
The company that offers a single-window solution for creative, media, data analytics and market research services will spend Rs 54 crore of the net fresh issue proceeds for working capital requirements. In fact, the fund size required for working capital has been reduced to Rs 54 crore, from Rs 87 crore earlier.
Further, 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.
With more than five decades of experience, RK Swamy claims to be among the top 10 diversified integrated marketing communication services groups operating in India, offering services in three segments namely integrated marketing communications, customer data analytics and marketing technology, and full-service market research and syndicated studies.
SBI Capital Markets, IIFL Securities and Motilal Oswal Investment Advisory are the merchant bankers to the issue.
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