R K SWAMY IPO opens for subscription on March 4, 2024 and closes on March 6, 2024. The allotment for the R K SWAMY IPO is expected to be finalized on Thursday, March 7, 2024. R K SWAMY IPO will list on BSE, NSE with tentative listing date fixed as Tuesday, March 12, 2024.
R K SWAMY IPO is a book built issue of Rs 423.56 crores. The issue is a combination of fresh issue of 0.6 crore shares aggregating to Rs 173.00 crores and offer for sale of 0.87 crore shares aggregating to Rs 250.56 crores.
R K SWAMY IPO price band is set at ₹270 to ₹288 per share. The minimum lot size for an application is 50 Shares. The minimum amount of investment required by retail investors is ₹14,400. The minimum lot size investment for sNII is 14 lots (700 shares), amounting to ₹201,600, and for bNII, it is 70 lots (3,500 shares), amounting to ₹1,008,000.
Objective
The Offer comprises a Fresh Issue of up to ~ 6,006,944 Equity Shares, aggregating up to ₹ 1,730 million by Company and an Offer for Sale of up to 8,700,000 Equity Shares aggregating up to ~₹ 250.56 Crore by the Selling Shareholders.
The company will not receive any proceeds from the Offer for Sale.
The net proceeds of the Fresh Issue, will be utilized in the following manner:
R K SWAMY IPO Details |
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IPO Date | March 04, 2023 to March 06, 2023 | ||||||||||
Listing Date | March 12, 2023 | ||||||||||
Face Value | Rs. 5 per share | ||||||||||
Price | ₹270 to ₹288 per share | ||||||||||
Lot Size | 50 Shares | ||||||||||
Total Issue Size | ₹423.56 Cr | ||||||||||
Fresh Issue | ~ 6,006,944 Equity Shares, ₹ 173 Cr. | ||||||||||
Offer for Sale | 8,700,000 Equity Shares ~₹ 250.56 Cr. | ||||||||||
Issue Type | Book Built Issue IPO | ||||||||||
Listing At | NSE, BSE | ||||||||||
Share holding pre issue | 44,457,140 | ||||||||||
Share holding post issue | 50,464,084 |
R K SWAMY IPO Lot Size |
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Application | Lots | Shares | Amount | ||||||||
Retail (Min) | 1 | 50 | ₹14,400 | ||||||||
Retail (Max) | 13 | 650 | ₹187,200 | ||||||||
S-HNI (Min) | 14 | 700 | ₹201,600 | ||||||||
S-HNI (Max) | 69 | 3,450 | ₹993,600 | ||||||||
B-HNI (Min) | 70 | 3,500 | ₹1,008,000 |
R K SWAMY IPO Timeline (Tentative Schedule) |
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IPO Open Date | Monday, March 4, 2024 | ||||||||||
IPO Close Date | Wednesday, March 6, 2024 | ||||||||||
Basis of Allotment | Thursday, March 7, 2024 | ||||||||||
Initiation of Refunds | Monday, March 11, 2024 | ||||||||||
Credit of Shares to Demat | Monday, March 11, 2024 | ||||||||||
Listing Date | Tuesday, March 12, 2024 | ||||||||||
Cut-off time for UPI mandate confirmation | 5 PM on March 6, 2024 |
R K SWAMY IPO Reservation |
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Investor Category | Shares Offered | Reservation % | |||||||||
QIB Shares Offered | Not less than 75% of the Net Issue | - | |||||||||
Retail Shares Offered | Not more than 10% of the Net Issue | - | |||||||||
NII (HNI) Shares Offered | Not more than 15% of the Net Issue | - |
R K SWAMY IPO Promoter Holding |
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Share Holding Pre Issue | 83.03% | ||||||||||
Share Holding Post Issue | 73.14% |
R K SWAMY IPO Subscription Status |
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Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed |
RK SWAMY is one of the leading integrated marketing service groups in India, offering a single-window solution for creative, media, data analytics and market research services.
Company RK SWAMY was founded by the late Mr. R K Swamy in 1973, and is led by Promoters, Srinivasan K Swamy (Sundar Swamy) and Narasimhan Krishnaswamy (Shekar Swamy), with extensive experience of over 45 years and 37 years respectively in the advertisement and marketing services industry.
SEGMENTS:
With 50+ years of service, company has a strong client base consisting of customers like Aditya Birla Sun Life AMC, Cera Sanitaryware, DRL, E.I.D.–- Parry (India) Limited, Fujitsu General (India), Gemini Edibles and Fats India Limited, Havells, Hawkins, Himalaya, HPCL, ICICI Prudential, IFB, Mahindra and Mahindra, ONGC, Royal Enfield, Shriram Finance, Tata Play, Ultratech Cement, and Union Bank of India.
Currently the company is present in 12 Indian cities, with 12 offices and 12 field locations, having experience in locations like Kochi, Kerala, and Hyderabad, Telangana. The company is moving ahead to this experience by commencing operations in Ahmedabad (Gujarat), Lucknow (Uttar Pradesh) and Jaipur (Rajasthan) to target new and emerging clients from these states. To capture the international market, company have established corporate and business presence in international markets such as Dubai and Bangladesh.
The marketing services market in India grew at a CAGR of 5.6% between the Fiscals 2019 and 2023, reaching ₹ 1,936 billion in the Fiscal 2023 and is expected to grow at a CAGR of 12.5 – 14.5% till Fiscal 2028. This growth was supported by marketing spends of Indian corporates, rise in revenue of companies and an increase in the gross domestic output in the economy.
Integrated Marketing Communication:
Market size of Integrated Marketing Communications in India was ₹ 931 bn. in FY23 as compared to ₹ 776.71 bn in FY19 growing at a CAGR of 4.6%. The industry is expected to grow at a CAGR of 13 - 15% to reach ₹1,700 - 1,800 billion by Fiscal 2028 on account of broader economic recovery and due to the shift towards digital advertising and spending, as internet subscribers rise.
Customer Data Analytics and MarTech
The market size of Customer Data Analytics and MarTech in India grew at a CAGR of 12.1% to ₹ 115.06 billion in FY23 & will grow at a CAGR of 13 - 15% to reach ₹ 200 - 230 billion by Fiscal 2028. The expanding digital ecosystem in India along with a growing emphasis on personalized client experiences and targeted marketing strategies has led to an increased demand for MarTech solutions.
Full-Service Market Research
The overall market size for Full-Service Market Research in India grew at 6.7% CAGR between the Fiscal 2019 and the Fiscal 2023 from ₹ 73.36 billion to ₹ 95.02 billion in Fiscal 2023 and is expected to grow at a CAGR–of 9 - 10% to reach ₹ 140 - 150 billion by Fiscal 2028 supported by growth in both syndicated reports and customized assignments, before shrinking as businesses declined in both the segments due to the pandemic.
RISK FOR THE ISSUE
Period Ended | 30th Sep 2023 | 31st Mar 2023 | 31st Mar 2022 | 31st Mar 2021 |
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Reserve of Surplus | 28.85 | 40.79 | 12.27 | -0.43 |
Total Assets | 252.23 | 313.65 | 406.44 | 390.06 |
Total Borrowings | 51.05 | 4.51 | 28.73 | 45.68 |
Fixed Assets | 4.663 | 4.139 | 0.805 | 5.382 |
Cash | 8.498 | 9.235 | 38.162 | 28.86 |
Net Borrowing | 42.55 | -4.73 | -9.43 | 16.82 |
Revenue | 141.097 | 292.613 | 234.413 | 173.546 |
EBITDA | 20.969 | 62.906 | 44.422 | 28.826 |
PAT | 7.931 | 31.258 | 19.255 | 3.077 |
EPS | 1.78 | 4.33 | 4.33 | 0.69 |
Key Performance Indicator |
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KPI | Values | ||||||||||
EPS Pre IPO (Rs.) | 7.03 | ||||||||||
EPS Post IPO (Rs.) | 3.14 | ||||||||||
P/E Pre IPO | 40.96 | ||||||||||
P/E Post IPO | 91.63 | ||||||||||
ROE | 22.20% | ||||||||||
ROCE | 28.95% | ||||||||||
P/BV | 8.73 | ||||||||||
Debt/Equity | 1.5 | ||||||||||
RoNW | - |
R K SWAMY Limited IPO Peer Comparison |
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Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
Affle (India) Limited | 20.1 | 20.20% | 18.50% | 58 | 9.9 | 0.14 | 18.50% | ||||
Latent View Analytics Limited | 7.19 | 16.70% | 13.80% | 73.1 | 8.43 | 0.02 | 13.80% | ||||
Vertoz Advertising Limited | 12.8 | 19% | 14.90% | 87 | 11 | 0.07 | 14.90% | ||||
R K SWAMY Limited | 7.03 | 28.95% | 22.20% | 40.96 | 8.73 | 1.5 | - |
R K SWAMY LIMITED
No. 19, Wheatcrofts Road, Nungambakkam, Chennai 600034, Tamil Nadu, India
Telephone: +91 22 4057 6499
E-mail: secretarial@rkswamy.com
Website: - www.rkswamy.com
Kfin Technologies Limited
KFintech, Tower-B, Plot No 31 & 32, Gachibowli, Hyderabad
Website: https://kosmic.kfintech.com/ipostatus/
Phone: 04067162222, 04079611000
Email: rkswamy.ipo@kfintech.com
RK Swamy Ltd. (RKSL) is a prominent marketing services group in India, offering a wide range of services. Ranked 8th in revenue among similar firms, RKSL has shown consistent growth in both income and profits over the past three fiscal years. Despite a high Price-to-Book Value (P/BV) ratio based on its net asset value (NAV), the issue is deemed overpriced based on FY24 earnings. However, management asserts that significant revenue typically occurs in the second half of the year, which could impact the Price-to-Earnings (P/E) ratio. With a lucrative market cap to turnover ratio, the IPO may still present an attractive opportunity for investors.
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