R K Swamy IPO; ITES company IPO to begin from March 04; 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 around Rs 424 crores through public issue IPO

R K Swamy IPO is a public offering of shares by Srinivasan K Swamy and Narasimhan Krishnaswamy. The IPO will open on March 04 and will close on March 06. The price band is ₹270 to ₹288 per share and the lot size is 50 shares. The issue size is ₹423.56 crore. The shares are expected to be listed on NSE, BSE on March 12 (^). Some additional information that you may find useful are: Services clients across segments to ~380 clients in H1FY24 and 475 clients in FY23. Revenues from key segments includes BFSI, Automotive and FMCG which accounts for 25.1%, 18.1% and 16.6% respectively for H1FY24 (v/s 32.6%, 17.8% and 17% respectively for FY23.: (**) - based on higher price band (^) indicative date

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

Key Pointers of R K Swamy IPO:

Promoters of the company are Srinivasan K Swamy and Narasimhan Krishnaswamy Currently promoters hold 83.6% stake in the company. While post-equity promoters stake will be 66.07%

Company has not undertaken Pre-IPO placement.

• Company aims to raise between Rs 408 to 424 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) Funding working capital requirements of Rs 54 crores 2) Funding capital expenditure to be incurred by the Company for setting up a digital video content production studio (“DVCP Studio”) - Rs 10.99 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
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 01-Mar-24.
• Price band for the IPO has been fixed at Rs 270 to 288 per share and bid lot are in multiple of 50 shares. The implied market cap post-issue at Rs 1,373 to 1,453 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on March 07 and share are expected to be listed on NSE, BSE on March 12.
• Company has direct competition in the ITES space with listed players including Affle (India) Ltd. and Latent View Analytics Ltd.
• SBI Capital Markets, IIFL Securities, Motilal Oswal Investment Advisors has been appointed as Merchant Banker to the issue. KFin Technologies Ltd. has been appointed as official registrar of the issue.

About R K Swamy Limited

R K Swamy Limited

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. Company is providing range of services in the following interrelated and complementary business segments: (i) Integrated Marketing Communications, (ii) Customer Data Analytics and MarTech; and (iii) Full-Service Market Research. 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.

Services clients across segments to ~380 clients in H1FY24 and 475 clients in FY23. Revenues from key segments includes BFSI, Automotive and FMCG which accounts for 25.1%, 18.1% and 16.6% respectively for H1FY24 (v/s 32.6%, 17.8% and 17% respectively for FY23.

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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, IPO Status, 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.