The IPO details for R K SWAMY have been confirmed, with the IPO scheduled to launch on March 4 and conclude on March 6. R K SWAMY aims to raise approximately ₹424 crores through the IPO, comprising a fresh issue of ₹173 crores and an offer for sale of up to 8,700,000 equity shares priced at ₹5 each. The allocation breakdown is as follows: 10% for retail investors, 75% for qualified institutional buyers (QIB), and 15% for high net worth individuals (HNI).
R K SWAMY is the largest Indian majority-owned integrated marketing services provider in India, offering a single window solution for creative, media, data analytics, and market research services. (Source: CRISIL Report, page 159). They are among the top 10 diversified integrated marketing communications services groups operating in India with a comprehensive range of services in the following interrelated and complementary business segments: (i) Integrated Marketing Communications, (ii) Customer Data Analytics and Marketing Technology (“Customer Data Analytics and MarTech”); and (iii) Full-Service Market Research (including customer experience measurement) and Syndicated Studies (“Full-Service Market Research”). (Source: CRISIL Report, page 159)
They have a track record of over five decades and have been serving leading companies such as Aditya Birla Sun Life AMC Limited, Cera Sanitaryware Limited, Dr. Reddy’s Laboratories Limited, E.I.D. – Parry (India) Limited, Fujitsu General (India) Private Limited, Gemini Edibles and Fats India Limited, Havells India Limited, Hawkins Cookers Limited, Himalaya Wellness Company, Hindustan Petroleum Corporation Limited, ICICI Prudential Life Insurance Company Limited, IFB Industries Limited, Mahindra and Mahindra Limited, Oil and Natural Gas Corporation Limited, Royal Enfield (a unit of Eicher Motors), Shriram Finance Limited, Tata Play Limited, Ultratech Cement Limited, and Union Bank of India.
They are a data-driven integrated marketing services provider and all segments of their business use digital initiatives extensively. During Fiscal 2023, they released over 818 creative campaigns on behalf of their clients across various media outlets, handled over 97.69 terabytes of data, and conducted over 2.37 million consumer interviews across quantitative, qualitative, and telephonic surveys. They aim to provide the highest levels of professional service to meet the continuous needs of their clients and aim to continue growing their capabilities with an unyielding focus on the needs of their clients. Their solutions and offerings are serviced by over 2,391 employees spread across 12 offices and 12 field locations across twelve cities, across their three business segments.
| IPO Date | March 4, 2024 to March 6, 2024 |
| Listing Date | March 12, 2024 |
| Face Value | ₹5 per share |
| Price Band | ₹270 to ₹288 per share |
| Lot Size | 50 Shares |
| Total Issue Size | 14,706,944 shares (aggregating up to ₹423.56 Cr) |
| Fresh Issue | 6,006,944 shares (aggregating up to ₹173.00 Cr) |
| Offer for Sale | 8,700,000 shares of ₹5 (aggregating up to ₹250.56 Cr) |
| Employee Discount | Rs 27 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 44,457,140 |
| Share holding post issue | 50,464,084 |
| 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 |
| KPI | Values |
|---|---|
| ROE | 16.47% |
| ROCE | 6.29% |
| Debt/Equity | 1.5 |
| RoNW | 5.41% |
| P/BV | 8.73 |
| PAT Margin (%) | 5.56% |
The net proceeds of the Fresh Issue, i.e., gross proceeds of the Fresh Issue less the Company’s share of the Offer related expenses (“Net Proceeds”) are proposed to be utilized in the following manner:
The company stands as one of the top integrated marketing services groups in India, boasting a track record spanning over five decades. With a strong reputation, it serves a prestigious customer base, fostering long-term relationships and garnering repeat orders. Considering its solid financial track record, the valuation of the offering seems comprehensive. Recently, there has been notable interest in media marketing and service segment stocks. Investors may consider allocating funds to this IPO for potential medium to long-term rewards.
R K SWAMY Limited’s revenue increased by 22.43% and profit after tax (PAT) rose by 62.34% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 252.23 | 313.65 | 406.44 | 390.06 |
| Revenue | 142.55 | 299.91 | 244.97 | 183.22 |
| Profit After Tax | 7.93 | 31.26 | 19.26 | 3.08 |
| Net Worth | 146.66 | 140.81 | 111.93 | 98.22 |
| Reserves and Surplus | 28.85 | 40.79 | 12.27 | -0.43 |
| Total Borrowing | 51.05 | 4.51 | 28.73 | 45.68 |
| Amount in ₹ Crore | ||||
| ₹ in Crores | |||
|---|---|---|---|
| Year | Revenue | Expense | PAT |
| 2021 | ₹183.22 | ₹154.39 | ₹3.07 |
| 2022 | ₹244.97 | ₹200.54 | ₹19.25 |
| 2023 | ₹299.91 | ₹237.00 | ₹31.25 |
| 2023 6M | ₹142.55 | ₹121.58 | ₹7.93 |
