 "IPOs, listing, Investors, Markets")
RK Swamy, an integrated marketing services provider, aims to raise up to Rs 423 crore through its maiden share sale, in the price band of Rs 270 - Rs 288 per share, this week.
The IPO opens for public bidding today, and the subscription period will close on March 06, Wednesday. Off the total IPO size of Rs 423 crore, the issue compromises of fresh issue of equity shares worth Rs 173 crore, and the balance through 'Offer For Sale' (OFS) by promoters and existing investors.
It has fixed a lot size of minimum 50 shares. Retail investors (up to Rs 2 lakh investment) can bid for a maximum of 740 equity shares at the lower end of the price band, and 694 shares at the upper end of the IPO price band.
The company plans to use proceeds from the issue to fund capital expenditure, working capital requirements, IT infrastructure, and setting-up new customer experience centres other than general corporate purposes.
Brokerage Outlook
Swastika in their IPO note has recommend a 'Subscribe' rating to RK Swamy share sale/. The brokerage believes that the IPO valuation of 41x P/E appears fairly priced when compared with its listed peers. While the company's future growth potential and the positive industry outlook are encouraging thus we recommend Subscribe rating for this IPO.
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Anchor book
Meanwhile, RK Swamy has raised Rs 187 crore through anchor investors on March 01. As per reports, the anchor book included several prominent investors such as - 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.
As per the prospectus, promoters Srinivasan K Swamy, and Narasimhan Krishnaswamy will be offloading close to 18 lakh equity shares each via the OFS, while investors Evanston Pioneer Fund will be offloading 44.46 lakh shares and Prem Marketing Ventures will be selling its entire stake of 6.78 lakh shares.
SBI Capital Markets, IIFL Securities and Motilal Oswal Investment Advisors are the lead managers of the issue.
About RK Swamy
RK Swamy offers a single-window solution for creative, media, data analytics and market research services in India. For the year ended March 2023, RK Swamy has reported revenue from operations of Rs 292.6 crore, up 25 per cent when compared with Rs 234 crore reported in FY22.
Post issue, the stock is expected to list on the bourses on Tuesday, March 12.
