RK Swamy IPO Sees 2.19x Oversubscription On Day One
The RK Swamy initial public offering (IPO) maintained a positive response from investors on the second day of the bidding process. The IPO, which commenced bidding on Monday, March 4, received an overall subscription of 2.19 times on the first day.
RK Swamy is offering its shares in the price range of Rs 270-288 each. Investors have the option to apply for a minimum of 50 shares and in multiples thereafter. The company aims to raise Rs 423.56 crore through its IPO with Rs 173 crore from the sale and an offer-for-sale (OFS) of up to 87,00,000 equity shares.
As per the data, investors submitted bids for 3,20,37,150 equity shares, equivalent to 3.89 times the 82,32,946 equity shares available for subscription by 1:25 pm on Tuesday, March 5. The three-day bidding process for the issue is set to conclude on Wednesday, March 6.
The allocation for retail investors was oversubscribed by 13.41 times, while non-institutional investors subscribed 5.57 times. The employee portion was subscribed 1.11 times. However, the portion designated for qualified institutional bidders (QIBs) received bids for only one per cent by the same time. RK Swamy, operational in integrated marketing communications, customer data analysis, full-service market research, and syndicated studies for over five decades.
The grey market premium for RK Swamy has declined post its recent listing, now standing at Rs 66, indicating a potential listing pop of approximately 23 per cent for investors. Contrastingly, the premium was Rs 90 a day earlier.
Despite positive sentiments, factors like heightened competition, increased working capital demand and evolving trends pose potential business challenges. As a key player in India's marketing services sector, RK Swamy adopts a comprehensive approach to cater to clients' marketing and advertising needs, maintaining reasonably priced valuations according to Mehta Equities.
Before its IPO, RK Swamy raised Rs 187.22 crore from 18 anchor investors by allocating 65,00,937 equity shares at Rs 288 each. The IPO distribution includes 75 per cent for qualified institutional investors (QIBs), 15% for non-institutional investors (NIIs), and 10 per cent for retail investors.
SBI Capital Markets, IIFL Securities and Motilal Oswal Investment Advisors serve as the book-running lead managers for the RK Swamy IPO, with Kfin Technologies acting as the registrar. The company's shares are scheduled to be listed on Dalal Street on March 12, Tuesday 2024, on both BSE and NSE.
