RK Swamy Limited to announce price band for upcoming IPO

The company is the first integrated marketing service group to go public in India.

By
  • Kashmeera Sambamurthy,
| February 28, 2024 , 9:22 am
Ahead of the IPO, the company raised Rs 187.22 crore through its anchor book on March 1. Nippon Life India was the largest institutional investor in the anchor book, picking Rs 50.03 crore worth of shares followed by Aditya Birla Sun Life Insurance Company, which bought Rs 20 crore worth of shares.
Ahead of the IPO, the company raised Rs 187.22 crore through its anchor book on March 1. Nippon Life India was the largest institutional investor in the anchor book, picking Rs 50.03 crore worth of shares followed by Aditya Birla Sun Life Insurance Company, which bought Rs 20 crore worth of shares.

RK Swamy Limited, an integrated marketing services provider is all set to announce their price band, which is scheduled to take place today in Mumbai.

The company, which is the first to open for an IPO in the country, will see bankers such as SBI Capital Markets, IIFL Securities and Motilal Oswal Investment Advisory, advising on the issue.

On April 6, 2023, Moneycontrol reported the listing plans of RK Swamy. The report had added that the proposed IPO would be a combination of primary and secondary issuance of shares and would facilitate growth capital.

The offer for sale comprised up to 1,788,093 equity shares by Srinivasan K Swamy, Up to 1,788,093 equity shares by Narasimhan Krishnaswamy, Up to 4,445,714 equity shares by Evanston Pioneer Fund L.P. and Up to 678,100 equity shares by Prem Marketing Ventures LLP.

Read More: SEBI greenlights RK Swamy’s proposed IPO

In August 2023, RK Swamy Limited filed its draft red herring prospectus with market regulator SEBI. The initial public offering of the firm, which gained popularity as an ad agency, comprises a fresh issue of aggregating up to Rs 215 crore and an offer for sale of up to 8,700,000 equity shares by selling shareholders.

In January 2024, The Securities and Exchange Board of India (SEBI) gave a green signal to RK Swamy’s proposed initial public offering (IPO), the nod of approval.

Read More: Integrated ad firm RK Swamy group files for IPO

The funds raised through the IPO are proposed to be utilised for the funding of working capital, the funding of capital expenditure to be incurred for setting up a digital video content production studio, the funding of investment in IT infrastructure development of RK Swamy Limited, and the material subsidiaries, Hansa Research and Hansa Customer Equity, the funding of the setup of a new customer experience centres and computer aided telephonic interview centres as well as for general corporate purposes.

The company was established by the late founder RK Swamy (referred to as the ‘Grand Old Man of Indian Advertising’ by Sam Balsara) who started RK SWAMY Advertising Associates in Chennai in 1973.

The integrated marketing communications business segment of RK Swamy includes creative and digital content, media (including digital), events and activation planning, buying and executing; and others including public relations, social media management, and pharmaceutical communication.

Read More: Integrated ad firm RK Swamy group files for IPO

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