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  • Writer's pictureJatin Agarwal

R K Swamy IPO

Updated: Mar 3


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R K SWAMY IPO Overview

R K SWAMY Limited, established in 1973, is set to launch its IPO from March 4 to March 6, 2024. The company specializes in integrated marketing communications, leveraging digital initiatives across customer data analysis, full-service market research, and syndicated studies. R K SWAMY has built a strong reputation for creativity and efficiency, serving top-tier clients across various sectors.


IPO Details

  • Issue Size: The IPO aims to raise approximately ₹423.56 crores, comprising a fresh issue of 0.6 crore shares amounting to ₹173 crores and an offer for sale of 0.87 crore shares totaling ₹250.56 crores.

  • Price Band: The price range is set between ₹270 to ₹288 per share.

  • Lot Size: Investors can bid for a minimum of 50 shares, with the minimum investment for retail investors being ₹14,400.

  • Listing: The company plans to list on both the BSE and NSE, with a tentative listing date of March 12, 2024​.

  • IPO Grey Market Premium (GMP): R K Swamy IPO's GMP is Rs.50 currently. This indicates listing gains will likely happen.


Financial Highlights

R K SWAMY has demonstrated consistent growth over recent years, with a significant increase in revenue and profit. For FY2023, the company reported a revenue of ₹299.91 crores and a profit after tax (PAT) of ₹31.25 crores. The first half of FY2024 saw revenues of ₹142.55 crores and a PAT of ₹7.93 crores, underscoring the company's operational efficiency and market position​.


Objectives of the Issue

The net proceeds from the IPO are earmarked for several strategic initiatives:

  • Funding working capital requirements.

  • Setting up a digital video content production studio.

  • Investing in IT infrastructure for the company and its subsidiaries.

  • Establishing new customer experience centers and computer-aided telephonic interview centers.


Market Position and Clientele

R K SWAMY prides itself on long-standing relationships with its top clients, with an average duration of approximately 19 years for its top 10 clients. A significant portion of its revenue comes from repeat clients, indicating strong client satisfaction and retention. The company has successfully executed over 818 campaigns across various media in FY2023, managing substantial data volumes and conducting extensive consumer research​.


Subscription and Application

Investors interested in the R K SWAMY IPO can apply through ASBA available in their bank accounts or via UPI through their stock brokers. The IPO's investors' portion is divided among QIB (75%), NII (15%), and Retail (10%), providing a broad base of investment opportunities​.


Conclusion

R K SWAMY's IPO presents an attractive investment opportunity in the integrated marketing and communications space, backed by a strong financial track record, prestigious client base, and strategic growth initiatives. However, investors are advised to conduct their own research and consider market conditions before investing.


Disclaimer: All information is provided for educational and informational purposes only. Data is fetched from publicly available sources such as the DRHP filed by the company and other reliable sources. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.

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