Within the first hour of opening on March 4, the initial public offering (IPO) of marketing communications firm RK Swamy witnessed a 16 percent subscription rate. Notably, the retail portion was subscribed 70 percent, while non-institutional investors bid 14 percent of their allotted share quota.
The Rs 423 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.
With a price band of Rs 270-288 per share, the IPO is scheduled to close on March 6. The company’s promoters are Srinivasan K Swamy and Narasimhan Krishnaswamy. Qualified institutional buyers have been allotted up to 75 percent of the issue, while retail investors have a 10 percent reservation, and the remaining 15 percent is for non-institutional investors.
Ahead of the IPO, the company raised Rs 187.22 crore through its anchor book on March 1. Notably, Nippon Life India was the largest institutional investor in the anchor book, acquiring Rs 50.03 crore worth of shares, followed by Aditya Birla Sun Life Insurance Company, which purchased Rs 20 crore worth of shares. Several other prominent investors also participated in the anchor book.
With over five decades of experience in diversified integrated marketing communications services, RK Swamy plans to utilize Rs 54 crore of the net fresh issue proceeds for working capital requirements. Additionally, Rs 10.98 crore will be allocated for setting up a DVCP studio, Rs 33.34 crore for investment in IT infrastructure development, and Rs 21.74 crore for the establishment of new CEC and CATI facilities.
