R K Swamy files DRHP with SEBI for the proposed IPO; Key Details here

R K Swamy is into IT ITES and is looking raise funds through Fresh Issue and Offer for Sale

R K Swamy to raise Fresh Issue aggregating up to Rs 215 crores and an Offer for Sale up to 8,700,000 Equity Shares through public issue IPO

R K Swamy IPO: R K Swamy Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 5 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 215 crores and an Offer for Sale up to 8,700,000 Equity Shares. SBI Capital Markets, IIFL Securities, Motilal Oswal Investment Advisors have been appointed as lead merchant bankers for the proposed IPO. It has appointed KFin Technologies Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 215 Crs and offer-for-sale (OFS) of up to 8,700,000 equity shares by Srinivasan K Swamy, Narasimhan Krishnaswamy, Evanston Pioneer Fund L.P. and Prem Marketing Ventures LLP who will offload up to 1,788,093 Equity Shares, up to 1,788,093 Equity Shares, up to 4,445,714 Equity Shares and up to 678,100 Equity Shares respectively...

Objects of the issue:
1) Funding working capital requirements of Rs 87 crores, 2) Funding capital expenditure to be incurred by the Company for setting up a digital video content production studio (“DVCP Studio”) - Rs 10.98 crores, 3) Funding investment in IT infrastructure development of our Company, and our Material Subsidiaries,Hansa Researchand Hansa Customer Equity - Rs 33.3 crores., 4) Funding setting up of new customer experience centres (“CEC”) and computer aided telephonic interview centres (“CATI”) - Rs 21.7 crores and 5) General corporate purposes.

About Company:
Mumbai based RK Swamy Limited established in 1973 and promoted by R K SWAMY Hansa Group. It is amongst top 10 integrated marketing communication services provider in India, offering a single-window solution for creative, media, data analytics and market research services. During FY23, company released over 818 creative campaigns on behalf of clients across various media outlets and have conducted over 2.37 million consumer interviews across quantitative, qualitative and telephonic surveys. Company catered to over 4,000 client organizations over the years and have served over 475 clients in the FY23 from 15 offices across 7 cities.

About Industry:
According to the CRISIL Report, the marketing services market in India grew at a CAGR of 5.6% between FY19-23, reaching ₹1,936 billion in FY23. Corporate revenue of 740 listed entities grew at a CAGR of 8.9% during the same period, which resulted in companies spending more on marketing activities, where advertisements form the biggest chunk of the overall marketing services market. Digital advertisement spends and investments in Customer data analytics & MarTech are expected to drive growth of the overall industry, which isexpected to reach ₹3,500-3,700 billion by the end of FY28e.

Source: SEBI, BSE, NSE, DRHP, Company, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.