R K Swamy stock makes tepid debut, lists at 13% discount

Employees also showed good interest in the issue, bidding 2.46 times the reserved portion.

Shares of R K Swamy made a weak debut on the bourses on March 12, listing at Rs 250, a discount of 13.1 percent over the issue price of Rs 288. The listing lagged analyst estimates who predicted the shares to list at Rs 300-310, a premium of about 5 percent.

The issue garnered decent investor interest, witnessing a subscription of 25.78 times. The subscription data reveals that participants applied for 21.22 crore equity shares against the IPO size of 82.32 lakh equity shares.

Retail investors and non-institutional investors (high net worth individuals) played a significant role, subscribing 33.31 times and 34.24 times their allotted quotas, respectively. Qualified institutional buyers showed strong interest, subscribing 20.58 times the portion reserved for them.

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The public offer 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. 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.

The funds raised through the issue will be deployed for diverse purposes such as funding capital expenditure, addressing working capital needs, investing in IT infrastructure, and establishing new customer experience centers. Alongside, a portion of the proceeds will be designated for general corporate purposes.

R K Swamy, founded in 1973, specializes in integrated marketing communications, customer data analysis, full-service market research, and syndicated studies.