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R K SWAMY Ltd IPO: Review, Valuation, Opening Date & GMP

  


R K SWAMY Limited IPO: Review, Valuation, Date & GMP

R K SWAMY Limited IPO  - Complete Overview

Established in 1973, R K Swamy Limited offers a comprehensive range of services across three interconnected business segments: Integrated Marketing Communications, Customer Data Analytics and Marketing Technology, and Full-Service Market Research (including customer experience measurement) and Syndicated Studies.

It stands as one of India's leading integrated marketing service groups, ranking 8th in terms of estimated operating revenue among similar service providers in the country. 

Throughout Fiscal 2023 and the six months ending September 30, 2023, the company executed over 818 and 438 creative campaigns, respectively, on behalf of its clients across various media platforms. 

Additionally, it managed over 97.69 and 140.05 Terabytes of data and conducted more than 2.37 million and 1.44 million consumer interviews through quantitative, qualitative, and telephonic surveys.

With a rich track record spanning over five decades, R K Swamy Limited has been a trusted partner for 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.

The company's workforce of over 2,533 employees is distributed across 12 offices and 12 field locations in 12 cities, supporting its operations across the three business segments.

 

R K SWAMY Limited IPO Overview:

R K SWAMY Limited IPO date is slated to be open for subscription from March 4, 2024, to March 6, 2024. This IPO follows a Book Built Issue IPO.

R K SWAMY Limited IPO price is set between the range of ₹270 to ₹288 per share. 

The total issue size of this IPO amounts to Rs. 423.56 Cr. The company has reserved 75% for institutional investors, 15% for non-institutional investors and 10% for retail investors. 

 

Company Financial

Compared to the previous fiscal year, R K SWAMY Limited has seen a decline in total assets but growth in net worth and total revenue. The profit after tax has increased, while total borrowings have risen.

(Amount in crores)

Period

30 Sep 2023

31 Mar 2023

31 Mar 2022

Total Assets 

252.23

313.65

406.44

Total Revenue

142.55

299.91

244.97

PAT

7.93

31.26

19.26

Net worth

146.66

140.81

111.93

Reserve & Surplus 

28.85

40.79

12.27

Total Borrowings

51.05

4.51

28.73

 

Total revenue is derived from company’s Subsidiaries

(Amount in million)

Entity

Six months ended September 30, 2023

Fiscal 2023

Fiscal 2022

Hansa Customer Equity

432.20

786.38

668.02

Hansa Research Group

358.02

699.22

583.62

 

Revenue contribution per business segment

(Amount in million)

Particular

Six months ended September 30, 2023

Fiscal 2023

Fiscal 2022

Integrated Marketing Communications

620.75

1,440.53

1,092.49

Customer Data Analytics And MarTech

432.20

786.38

668.02

Full-Service Market Research

358.02

699.22

583.62

Total

1,410.97

2,926.13

2,344.13

 

Revenue split between private and public sector

(Amount in million)

Organizational Structure

Six months ended September 30, 2023

Fiscal 2023

Fiscal 2022

Private Sector

1311.86

2.501.39

1,846.39

Public Sector

99.11

424.74

497.75

Total

1,410.97

2,926.13

2,344.13

 

 

 

The Objective of the Issue

The net proceeds from the Fresh Issue, which represent the gross proceeds less than the Company’s share of the Offer-related expenses are intended to be utilized as follows:

1. Funding the working capital requirements of our Company.

2. Financing the capital expenditure for establishing a digital video content production studio ("DVCP Studio").

3. Investing in the development of IT infrastructure for the Company and its Material Subsidiaries, Hansa Research and Hansa Customer Equity.

4. Allocating funds for the establishment of new customer experience centers ("CEC") and computer-aided telephonic interview centers ("CATI") for the Company.

5. General corporate purposes.

 

Peers of R K SWAMY Limited IPO

Name of the company

Face value (₹)

EPS (₹)

P/E Ratio

R K Swamy Limited

5

7.03

-

Affle (India) Limited

2

18.43

66.74

Latent View Analytics Limited

1

7.63

63.70

Vertoz Advertising Limited

10

9.22

78.07

 

 

 

IPO's Strengths

  • Provider of integrated marketing services, serving clients for five decades.

  • 15-year track record in Data Analytics and Marketing Technology, demonstrating expertise in producing digital content at scale.

  • A recognized leader in the market research business.

  • Established brands across various segments, supported by experienced Promoters and a seasoned Senior Management team.

  • Diversified customer base with enduring relationships.

  • Well-developed internal infrastructure ensuring efficient service delivery.

IPO weaknesses

  • The company's operational results and key business metrics are subject to quarterly fluctuations, which may impact its overall performance.

  • Dependency on information technology systems makes the company vulnerable to potential cybersecurity breaches, potentially affecting its reputation, operational expenses, and profits.

  • Compliance with security, data protection, and privacy standards is essential for the company and its business partners.

  • Legal and regulatory proceedings involving the Company, Directors, Promoters, and Subsidiaries may impact operations.

  • Operating in a dynamic media landscape encompassing digital, print, and television requires adept adaptation and management to avoid adverse effects on business and revenue.

  • The company faces competition in its operating environment.

 

IPO GMP Today 

The Latest GMP of R K SWAMY Limited IPO is Rs.90.

 

R K SWAMY Limited IPO timetable (Tentative)

R K SWAMY Ltd IPO is scheduled from March 4 to March 6, 2024, with allotment on March 7, refund initiation on March 11, and listing on March 12, 2024.

Events 

Date

IPO Opening Date

March 4, 2024

IPO Closing Date

March 6, 2024

IPO Allotment Date 

March 7, 2024

Refund initiation 

March 11, 2024

IPO Listing Date

March 12, 2024


R K SWAMY Limited IPO Details 

R K SWAMY Ltd IPO, with a face value of Rs.5 per share, opens on March 4 and closes on March 6, offering 14,706,944 shares between the range of Rs.270 to Rs. 288 per share, with a lot size of 50 shares, and will be listed on NSE and BSE.

IPO opening & closing date 

March 4, 2024 to March 6, 2024

Face value 

₹5 per share

Issue Price

₹270 to ₹288 per share

Lot Size

50 Shares

Price of 1 lot

₹14,400

Issue Size

14,706,944 shares (aggregating up to ₹423.56 Cr)

Offer for sale 

8,700,000 shares of ₹5 (aggregating up to ₹250.56 Cr)

Fresh issue 

6,006,944 shares (aggregating up to ₹173.00 Cr)

Employee Discount

Rs 27 per share

Listing at

BSE, NSE

Issue Type 

Book Built Issue IPO

Registrar 

Kfin Technoogies Ltd. 

 

R K SWAMY Limited IPO Lot Details 

For R K SWAMY Ltd IPO, the retail investor can bid for minimum 1 lot and maximum 13 lot, while for HNI investors, the minimum investment is 14 lots (700 shares) at Rs.2,01,600.

Application

Lot

Minimum Lot Investment (Retail) 

1 lot

Maximum Lot Investment (Retail) 

13 lot

Minimum Lot Investment (HNI) 

14 lot

Maximum Lot Investment (HNI) 

67 lot

 

R K SWAMY Limited IPO Reservation

Institutional share Portion

75%

Non-institutional share Portion

15%

Retail share Portion

10%

 

Promoters and Management of R K SWAMY Limited

  • Srinivasan K. Swamy

  • Narasimhan Krishnaswamy

Pre-issue Promoter shareholding

83.03%

Post-issue Promoter shareholding

 

 

R K SWAMY Limited IPO Lead Managers:

  • SBI Capital Markets Limited

  • Iifl Securities Ltd 

  • Motilal Oswal Investment Advisors Limited 

Dividend Policy

The company has implemented a sound dividend policy, distributing dividends of Rs. 5, Rs. 4, and Rs. 1.15 per equity share for the fiscal years 2023, 2022, and 2021 respectively. Future dividend payments will be contingent upon the company's overall financial performance.

 

 

Conclusion

R K SWAMY Limited stands at the forefront of the integrated marketing services sector in India, boasting a track record spanning over five decades and a prestigious clientele. With strong financial performance, investors are encouraged to assess all factors thoroughly before participating in the IPO to achieve optimal results.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

 

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Frequently Asked Questions

+

The IPO is scheduled to open for subscription on March 4, 2024.

 

+

The issue price for R K SWAMY Limited IPO is set in the range of ₹270 to ₹288 per share.

 

+

The total issue size of the IPO is Rs.423.56 Cr, with 10% reserved for retail investors.

 

+

The IPO is set to close on March 6, 2024.

 

+

The IPO's net proceeds will be allocated towards establishing a digital video content production studio, meeting working capital needs, funding investments in IT infrastructure development, establishing new customer experience centers and computer-aided telephonic interview centers, and addressing general corporate requirements.

 



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