RK Swamy IPO: Issue Booked 25.78 Times; QIB Portion 20.58 Times

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by Sandip Das on 6 March 2024,  5 min read

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RK Swamy opened its Initial Public Offering (IPO) for subscription on March 4, 2024, and it will close on March 6, 2024. The company has set the IPO price band between Rs 270 to Rs 288 per equity share. The company intends to raise Rs 423.56 crore from its book build issue. It is a combination of fresh issues and offers for sale (OFS). The company’s goal is to raise Rs 173 crore from the issuance of fresh shares. The remaining Rs 250.56 crore was earmarked by OFS.

About the Company

According to the company, RK Swamy Ltd., a Chennai-based marketing communications major, ranks among the top 10 diversified integrated marketing communications services companies in the country. It holds the distinction of being the first in its category to go public.

IPO Subscription Status

Investors booked the issue 25.78 times compared to 82.32 lakh shares, while the retail portion subscribed 33.31 times. Non-Institutional Investors (NII) booked 34.24 times against 21.66 lakh shares. Qualified Institutional Buyers (QIBs) subscribed 20.58 times compared to 43.33 lakh shares.

Price Band

The company has set the IPO price band between Rs 270 to Rs 288 per equity share.

Also read: Gopal Snacks IPO: Top Things to Know Before Subscribing to The Issue
Issue Size

The IPO holds a value of Rs 423 crore, comprising fresh shares amounting to Rs 173 crore and an offer-for-sale of 87 lakh equity shares by both promoters and investors, with a total worth of Rs 250 crore.

IPO Reserve Portion
  • Qualified Institutional Buyers (QIB): Up to 75 percent of the issue
  • Retail Investors: 10 percent of the issue
  • Non-institutional investors (NII): 15 percent of the issue
Company Financials
Particulars (Rs million) 6-month Ended Sept 30, 2023 Year ended March 31, 2023
Revenue from operations 1,410.97 2,926.13
Profit After Tax 79.31 312.58
Objectives of the Issue

RK Swamy plans to allocate the net fresh issue proceeds as follows: Rs 54 crore for working capital requirements, Rs 10.98 crore for establishing a DVCP studio, Rs 33.34 crore for investment in IT infrastructure development, and Rs 21.74 crore for setting up a new CEC and CATI for the company.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment.

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