RK Swamy IPO to open on March 4, price band to be announced tomorrow

RK Swamy, an integrated marketing services provider in India, will be opening its initial public offering (IPO) for subscription on March 4. The fund raising via IPO is expected to be in the range of Rs 450-500 crore, sources informed Moneycontrol.

The price band for the offer will be announced on February 27. The public issue will close on March 6, while the anchor book of the IPO will be opened for a day on March 1.

The IPO is a mix of fresh issuance of equity shares worth Rs 173 crore, and an offer-for-sale (OFS) of 87 lakh equity shares by promoters and investors, as per the addendum to DRHP dated November 11, 2023.

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 via OFS.

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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.

Of them, Prem Marketing Ventures LLP will be exiting the marketing services provider post issue.

As per the addendum to DRHP, the fresh issue size has been reduced to Rs 173 crore from Rs 215 crore earlier, while keeping the OFS size unchanged.

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The company that offers 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.

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With more than five decades of experience, RK Swamy claimed to be among the top 10 diversified integrated marketing communications 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.