Thinking about investing in the upcoming R K SWAMY IPO? Here’s a breakdown of the key details to help you decide:
Check R K SWAMY IPO Allotment Status
R K SWAMY IPO Overview
R K SWAMY is a leading Indian company in the integrated marketing communications (IMC) space. They offer a wide range of services including advertising, market research, customer data analysis, and digital marketing solutions.
Today, R K SWAMY Hansa Group is the largest Indian-majority owned integrated marketing services provider. The company offer comprehensive solutions, including:
- Creative services: developing advertising campaigns across various media channels.
- Media Planning and Buying: strategically placing advertisements to reach the target audience.
- Data Analytics and Customer Insights: using data to understand customer behavior and tailor marketing strategies.
- Market Research: conducting research to gain insights into the market and competition.
A focus on future
R K SWAMY positions itself as a data-driven marketing agency, leveraging digital tools and analytics to deliver effective campaigns. Their strong presence and diverse service offerings make them a significant player in the Indian marketing.
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Objective of the Issue
The company plans to utilize the net proceeds from the fresh issue for:
- Funding Working Capital: A portion of the proceeds will be used to meet the company’s day-to-day operational expenses to ensure smooth functioning of ongoing projects.
- Investing in Growth: The IPO will fund the establishment of a dedicated Digital Video Content Production Studio (DVCP Studio). It will help to focus on creating video content, a crucial element in today’s marketing landscape.
- Upgrading Infrastructure: Funds will be allocated to upgrade the IT infrastructure of both R K SWAMY and its subsidiaries, particularly Hansa Research, which focuses on market research. This investment can improve efficiency, data processing capabilities, and overall service delivery.
- Expanding Reach: The company plans to set up new Customer Experience Centers (CECs) and Computer-Aided Telephonic Interview (CATI) centers. This expansion can enhance their ability to interact with clients, conduct market research to a wider audience.
- General Corporate Purposes: A portion of the funds will be used for unforeseen expenses, potential debt servicing, and other strategic initiatives that may arise.
Overall, the R K SWAMY IPO aims to raise capital for growth and modernization. By investing in digital content creation, IT infrastructure, and expanding its service network, the company seeks to strengthen its position in the evolving marketing landscape.
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R K SWAMY IPO Date & Price Band Details
IPO Dates
| 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 |
Issue Details
Issue Type: Book built issue
IPO Size: ₹423.56 Crore
Fresh Issue: ₹173.00 Crore (0.6 crore shares)
Offer for Sale (OFS): ₹250.56 Crore (0.87 crore shares)
Price Band: ₹270 – ₹288 per share
Lot Size: 50 Shares (Minimum investment ₹13,500 at upper price band)
R K SWAMY IPO Lot Size
| 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 GMP Today
The current GMP of R K SWAMY is Rs. 55.
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R K SWAMY Financial Information
| Particulars | FY23 | FY22 | FY21 |
| Net Revenues (₹ in crore) | 292.61 | 234.41 | 173.55 |
| Sales Growth (%) | 24.83% | 35.07% | |
| Profit after Tax (₹ in crore) | 31.26 | 19.17 | 2.93 |
| PAT Margins (%) | 10.68% | 8.18% | 1.69% |
| Total Equity (₹ in crore) | 45.23 | 16.35 | 3.30 |
| Total Assets (₹ in crore) | 313.65 | 406.44 | 390.06 |
| Return on Equity (%) | 69.11% | 117.27% | 88.85% |
| Return on Assets (%) | 9.97% | 4.72% | 0.75% |
| Asset Turnover Ratio (X) | 0.93 | 0.58 | 0.44 |
| Earnings per share (₹) | 7.03 | 4.33 | 0.69 |
R K SWAMY Peer Comparison
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | RoNW (%) |
| RK Swamy Limited | 2,999.13 | 5 | NA | 7.03 | 22.20 |
| Affle (India) Limited | 14,882.80 | 2 | 60.18 | 18.43 | 16.73 |
| Latent View Analytics Limited | 5,945.28 | 1 | 49.99 | 7.71 | 12.87 |
R K SWAMY IPO Promoter Holding
The promoters of the company are Srinivasan K Swamy (Sundar Swamy) and Narasimhan Krishnaswamy (Shekar Swamy).
| Share Holding Pre Issue | 83.03% |
| Share Holding Post Issue |
R K SWAMY IPO Strength and Weakness
Strengths:
Established Brand and Expertise: R K SWAMY boasts a long history (founded 1973) and a strong reputation in the Indian marketing and advertising industry. Their strong presence and brand recognition can be valuable assets.
Integrated Marketing Services: They offer a comprehensive range of services, including advertising, market research, data analytics, and digital marketing. This one-stop-shop approach can be attractive to clients looking for a holistic marketing strategy.
Focus on Data-Driven Marketing: R K SWAMY emphasizes using data analytics to understand customer behavior and tailor marketing campaigns.
Blue-Chip Client Base: The company has a well-established client base across various sectors, including some of India’s biggest brands. This strength shows their ability to cater to diverse marketing needs.
Experienced Management Team: R K SWAMY has a seasoned management team with extensive industry knowledge, which can contribute to strategic decision-making.
Weaknesses:
Client Concentration: The company’s revenue heavily relies on a few key clients. Losing or experiencing budget cuts from these clients could significantly impact their financial performance.
Competition: The Indian marketing and advertising industry is highly competitive. R K SWAMY faces competition from established domestic players and global agencies.
Profitability: While improving, R K SWAMY’s profit margins may not be as high as some competitors.
Overall, R K SWAMY IPO presents a mix of strengths and weaknesses. Investors should carefully consider these factors along with their own risk tolerance and investment goals before making a decision.
Disclaimer: The information provided on this website is for general informational purposes only and should not be construed as financial advice, investment recommendations, or guarantees of any kind. This information is not intended as a substitute for professional financial advice. You should always seek the advice of a qualified financial advisor before making any investment or financial decisions.
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