R K Swamy Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹288
Per ShareLot Size
50 Shares
Minimum Investment
₹14,400
Issue Size
₹423.56 Cr
Face Value
₹5
Per ShareIPO Type
Book Building
Retail Quota
10%
QIB Quota
75%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
R K Swamy Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
78.73%
Issue Type
Book Building
ISIN
INE0NQ801033
About the Company
We are one of the leading integrated marketing service groups in India, offering a single-window solution for creative, media, data analytics and market research services. We are ranked 8th in terms of estimated operating revenue among the integrated marketing communications services groups operating in India. We offer comprehensive range of services in the following interrelated and complementary business segments: (i) Integrated Marketing Communications, (ii) Customer Data Analytics and MarTech; and (iii) Full-Service Market Research. The Company provides Integrated Marketing Communications services, Hansa Customer Equity provides Customer Data Analytics and MarTech and Hansa Research provides Full-Service Market Research services.
Industry Overview
According to the CRISIL Report, the marketing services market in India grew at a CAGR of 5.6% between fiscals 2019 and 2023, reaching Rs. 1,936 billion in FY23. Corporate revenue of 748 listed entities grew at a CAGR of 8.9% during the same period, which resulted in companies spending more on marketing activities, where advertisements form the biggest chunk of the overall marketing services market. Digital advertisement spends and investments in Customer data analytics & MarTech are expected to drive growth of the overall industry, which is expected to reach Rs. 3,500-3,750 billion by the end of fiscal 2028.
Company History
R K Swamy Ltd was incorporated as "R. K. Swamy Advertising Associates Private Limited" on February 16, 1973, as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation granted by the Registrar of Companies, Tamil Nadu at Madras. On September 11, 1990, a fresh certificate of incorporation was issued by the Registrar of Companies, Tamil Nadu at Madras, pursuant to change of name of the Company to "R. K. Swamy BBDO Advertising Private Limited". On April 01, 1997, the Company became a deemed public limited company under section 43-A(2) of the Companies Act, 1956 and consequently the name of the company was changed to "R. K. Swamy BBDO Advertising Limited". On March 26, 2001, the name of the company was changed to "R. K. Swamy BBDO Advertising Private Limited" under section 43-A(2A) of the Companies Act,1956, pursuant to an amendment to the Companies Act 1956 with respect to deemed public company. On February 21, 2005, a fresh Certificate of Incorporation issued by the Registrar of Companies, Tamil Nadu at Chennai ("RoC"), pursuant to change of the company name to "R. K. Swamy BBDO Private Limited". On June 21, 2022, a fresh Certificate of Incorporation was issued by the RoC, pursuant to change of name of the Company to "R K Swamy Private Limited". Pursuant to the conversion of the Company into a public limited company and as approved by its Board on June 16, 2023, and a special resolution passed by its Shareholders on July 3, 2023, the name of the Company was changed to "R K Swamy Limited", and the RoC issued a fresh certificate of incorporation on July 17, 2023
Growth Strategy
- Deepen existing client relationships, expand our client base, while focusing on key sectors.
- Focus on creation of digital content at scale.
- Expanding our presence in domestic and international markets.
- Focus on new initiatives aimed at enhancing our product and service portfolio.
- Continue to focus and invest in talent retention, enhancement and expansion.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 14,733,883 equity shares* of face value of Re. 5 each ("Equity Shares") of R K Swamy Limited ("Company" or the "Issuer") for cash at a price of Rs. 288.00^* per equity share (including a share premium of Rs. 283.00 per equity share) (the "Offer Price") aggregating Rs. 423.56 crores* (the "Offer"), comprising a fresh issue of 6,033,883 equity shares* aggregating Rs. 173.00 crores* ("Fresh Issue") and an offer for sale of 8,700,000 equity shares* (the "Offered Shares") aggregating Rs. 250.56 crores* (the "Offer for Sale" and together with the fresh issue, the "Offer"), comprising 1,788,093 equity shares* by Srinivasan K Swamy aggregating Rs 51.50 crores*, 1,788,093 equity shares* by Narasimhan Krishnaswamy aggregating Rs. 51.50 crores*, 4,445,714 equity shares* by Evanston Pioneer Fund l.p. aggregating Rs. 128.04 crores* and 678,100 equity shares* by Prem Marketing Ventures llp aggregating Rs. 19.53 crores* (collectively, the ôselling shareholdersö). The offer included a reservation of 287,356 equity shares*, aggregating Rs. 7.5 crores^^* (constituting 0.57 % of the post offer paid-up equity share capital of the company, for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constituted 29.18% and 28.61%, respectively, of the post-offer paid-up equity share capital of the company. The company in consultation with the book running lead managers ("brlms"), offered a discount of 9.38% (equivalent of Rs. 27 per equity share) on the offer price to eligible employees bidding in the employee reservation portion ("Employee Discount"). *Subject to finalization of basis of allotment. ^A Discount of Rs. 27 per equity share was offered to eligible employees bidding in the employee reservation portion ^^After employee discount
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Integrated marketing services provider serving clients for 50 years.
- 15 year track record in the Data Analytics and Marketing Technology segment, with a proven ability of producing digital content at scale, a leader in the business of market research.
- Well established brands across segments with experienced Promoters and a professional Senior Management.
- Well diversified customer base with long standing relationships.
- Established internal infrastructure for efficient delivery of services.
- Its business is concentrated around key clients, which account for a significant amount of its revenue. If the company fail to retain these clients, or diversify its client base or if its key clients reduce their marketing budgets, the company's business, revenue growth, results of operations, cash flows and financial condition may be materially and adversely affected.
- Its revenues are highly dependent on certain key industries. Any decrease in demand for marketing services in these industry verticals could reduce its revenues and adversely affect its business, financial condition and results of operations.
- Digital marketing and Integrated Marketing Communications form a substantial part of its offerings and hence are the company's major source of income. Any changes in trend, decrease in digital advertisement/ Integrated Marketing Communications-spend by its clients or inability or delays in aligning its offerings with market trends and technological advancements, could have a material adverse effect on its business, revenue growth and results of operations and financial condition.
- If the company is unable to consistently upgrade its data analytics capabilities in line with the latest technologies or if its data-based predictions are wrong because the company's technology hasn't evolved enough or due to any other reasons, it may adversely affect its quality of services and clients' satisfaction. The cost of implementing any new technologies could adversely affect its business and financial condition.
- Clients may delay or default on their payments. This could adversely affect its business and financial condition.