R K Swamy Aims To Raise Rs 1,730 Million For Expansion & Technological Upgradation

R K Swamy, an integrated marketing services company, has proposed its initial public offering (IPO) at a price band fixed at Rs 270 to Rs 288 per equity share with a face value of Rs 5 each.

The company said the offering will start on 4th March and end on 6th March, with the anchor investor bidding date set for 1st March. The marketing firm emphasised that the investors could place bids for a minimum of 50 equity shares, with the option to increase in multiples of 50 equity shares thereafter.

With this IPO, R K Swamy has entered the ranks of leading marketing companies that have gone public. The IPO includes a fresh issue of equity shares totaling up to Rs 1,730 million and an offer for sale of up to 87,00,000 equity shares consisting of up to 17,88,093 equity shares by Srinivasan K Swamy.

Additionally, the offer consists of up to 17,88,093 equity shares by Narasimhan Krishnaswamy; up to 44,45,714 equity shares by Evanston Pioneer Fund L.P.; and up to 6,78,100 equity shares by Prem Marketing Ventures LLP (together, the selling shareholders).

Speaking on this offering with BW Businessworld Rajeev Newar, Group CFO at R K Swamy said, “We rank among the leading five providers of integrated marketing services in the nation. It is worth noting that all the other competitors currently listed operate within one of the segments we specialise in, whether it be on the mainboard or SME.”

Newar elaborated that this IPO will also provide the company with a unique profile, offering credibility, and will ultimately enhance the financial stability of the organisation. 

He stressed the firm has a rich history of 50 years and its performance over the past few years speaks for itself. “One of the main purposes of this IPO is to fortify the company's existing infrastructure to seize bigger opportunities, added the CFO.

On a similar line Srinivasan K Swamy, Chairman and Managing Director, R K Swamy said four significant factors contribute to the importance of Red Herring Prospectus (RHP). The initial reason is undoubtedly our plan to establish a digital studio, specifically a video studio, to efficiently create video content on a large scale.

Additionally, the key elements for the company's decision to go public are improving the company's technological infrastructure, implementing computerization and raising capital, underscored Swamy.

R K Swamy is set to go public with its main financial indicators for the FY 2023 showing gross revenue from operations of Rs 7,799.02 million, total income of Rs 2,999.13 million, an EBITDA margin of 20.97 per cent, and a PAT margin of 10.42 per cent.