R K SWAMY IPO consists of a fresh issue of shares worth INR 173 crores and an offer to sell 87 lakhs of existing equity shares. The total issue is worth INR 423 crores. The company will use the funds raised for working capital, DVCP Studio, IT infrastructure, CEC and CATI centers, and general corporate purposes.
R K Swamy Limited IPO – Important Details
| R K SWAMY IPO Date | March 4, 2024 to March 6, 2024 |
| R K SWAMY IPO Listing Date | March 12, 2024 |
| R K SWAMY IPO Price | INR 270 to 288 per share |
| R K SWAMY IPO Lot Size | 50 Shares |
| R K SWAMY IPO Total Issue Size | INR 423 Cr |
| R K SWAMY IPO Basis of Allotment | March 7, 2024 |
| R K SWAMY IPO Initiation of Refunds | March 11, 2024 |
| R K SWAMY IPO Credit of Shares to Demat | March 11, 2024 |
| R K SWAMY IPO Issue Type | Book Built Issue IPO |
| R K SWAMY IPO Listing At | BSE, NSE |
R K Swamy Ltd IPO – Company Profile
R K SWAMY is India’s largest integrated marketing services provider, offering a comprehensive range of creative, media, data analytics, and market research services. With over five decades of experience, they serve top companies across various industries, ensuring effective integrated marketing communications and customer-focused solutions.
As a data-driven integrated marketing services provider, they have executed 818 creative campaigns in Fiscal 2023, managed 97.69 terabytes of data, and conducted 2.37 million consumer interviews. With 2,391 employees in 12 offices, they prioritize client needs, ensuring professional service and continual growth.
They are a leading integrated marketing services provider, offering unified solutions in Integrated Marketing Communications, Customer Data Analytics and MarTech, and Full-Service Market Research. Notable subsidiaries, Hansa Customer Equity and Hansa Research contribute to their industry prominence.
R K Swamy Limited IPO – Fundamental Analysis
R K Swamy demonstrates positive financial trends, including revenue growth, improved profitability, and rising RoNW. The substantial increase in EPS and NAV per Equity Share enhances the company’s financial standing.
Revenue Growth:
R K Swamy demonstrates modest revenue growth, from ₹1,735.46 million in 2021 to ₹2,926.13 million in 2023, indicating stable business operations.
Profitability:
Profit and Loss After Tax rises significantly from ₹30.77 million in 2021 to ₹312.58 million in 2023, showcasing improved profitability.
Return on Net Worth (RoNW):
RoNW experiences positive progression, increasing from 3.13% in 2021 to 22.20% in 2023, reflecting enhanced returns on equity.
Net Asset Value (NAV) and Equity:
NAV per Equity Share grows steadily from ₹22.09 in 2021 to ₹31.67 in 2023, indicating positive shareholder value creation. Equity expands significantly from ₹33.00 million in 2021 to ₹452.31 million in 2023.
Earnings per Share (EPS):
Diluted EPS sees substantial improvement, moving from ₹0.69 in 2021 to ₹7.03 in 2023, indicating increased earnings available to each share.
Financial Stability:
The Debt Equity Ratio declined from 22.63 in 2021 to 0.76 in 2023, signifying a reduction in financial leverage. The Current Ratio fluctuates, indicating varying short-term liquidity.
R K Swamy IPO Financial Information
R K Swamy’s financials leading up to its IPO exhibit significant revenue and profit growth alongside improved equity and profitability metrics. These indicators highlight the company’s strong market position and financial health, making its IPO an attractive investment opportunity with potential for growth.
Revenue Growth:
R K Swamy has shown consistent revenue growth from ₹1,735.46 million in 2021 to ₹2,926.13 million in 2023. This steady increase suggests a growing demand for its services and an expanding market presence.
Equity Expansion:
The company’s equity has substantially increased, from ₹33.00 million in 2021 to ₹452.31 million in 2023, indicating strong shareholder confidence and potentially successful capital-raising activities to fuel growth.
Profitability:
Profit after tax has increased significantly from ₹30.77 million in 2021 to ₹312.58 million in 2023, showcasing the company’s ability to scale its operations efficiently and improve profitability.
Return on Net Worth (RoNW):
The RoNW has improved from 3.13% in 2021 to 22.20% in 2023, highlighting the company’s increasing efficiency in generating profits from shareholders’ equity.
Net Asset Value (NAV) per Equity Share:
The NAV per equity share has progressively increased, indicating an enhancement in the intrinsic value of the company’s shares.
Diluted EPS:
The Diluted EPS has seen a significant improvement, from ₹0.69 in 2021 to ₹7.03 in 2023, reflecting the company’s growing earnings power per share.
Asset and Liability Management:
While total assets decreased slightly in 2023, the significant reduction in total liabilities and the improvement in the debt-equity ratio from 22.63 in 2021 to 0.76 in 2023 signal strong financial restructuring and risk management.
Current Ratio:
The current ratio has seen fluctuations but stands at 1.00 in 2023, indicating the company’s ability to meet its short-term obligations, though it suggests tight liquidity.
| Particular | As of 31 March 2021 | As of 31 March 2022 | As of 31 March 2023 |
| Revenue (₹ in Million) | 1,735.46 | 2,344.13 | 2,926.13 |
| Equity (₹ in Million) | 33.00 | 163.49 | 452.31 |
| Expenses (₹ in Million) | 1,543.94 | 2,005.49 | 2,370.07 |
| Profit and Loss After Tax (₹ in Million) | 30.77 | 192.55 | 312.58 |
| RoNW (%) | 3.13 | 17.20 | 22.20 |
| NAV per Equity Share (₹) | 22.09 | 25.18 | 31.67 |
| Diluted EPS only (₹) | 0.69 | 4.33 | 7.03 |
| Total Assets (in millions) | 3,900.59 | 4,064.41 | 3,136.52 |
| Total Liabilities (in millions) | 3,867.59 | 3,900.92 | 2,684.21 |
| Debt Equity Ratio | 22.63 | 3.09 | 0.76 |
| Current Ratio | 1.15 | 0.94 | 1.00 |
R K SWAMY Peer Comparison
R K Swamy Limited presents a total income of ₹2,999.13 million, an EPS of ₹7.03, and a robust RoNW of 22.20%. Affle (India) Limited, with a higher P/E of 60.18, and Latent View Analytics Limited, with diverse financial metrics, require careful consideration based on investment objectives.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| RK Swamy Limited | 2,999.13 | 5 | NA | 7.03 | 7.03 | 22.20 | 31.67 |
| Affle (India) Limited | 14,882.80 | 2 | 60.18 | 18.43 | 18.43 | 16.73 | 110.11 |
| Latent View Analytics Limited | 5,945.28 | 1 | 49.99 | 7.71 | 7.63 | 12.87 | 58.93 |
R K Swamy Limited IPO Objective
The main objective of R K SWAMY IPO’s is to utilize INR 87 crores for working capital, INR 10.985 crores for a DVCP Studio, INR 33.342 crores for IT infrastructure, INR 21.736 crores for new CEC and CATI, and balance for general corporate purposes, covering growth, marketing, contingencies, and debt servicing.
- Funding working capital requirements of the company: The Company proposes to utilize INR 87 crores from the Net Proceeds to support the Company’s future working capital requirements in Fiscal Year 2024.
- Funding capital expenditure to be incurred by the company for setting up a DVCP Studio: The Company approved an amount of INR 10.985 crores from the Net Proceeds for funding the proposed capital expenditure towards setting up a studio. Investing in a digital production studio to meet growing demand, enhance in-house capabilities, reduce outsourcing costs, and boost revenue/profits.
- Funding investment in IT infrastructure development of the company and their Material Subsidiaries, Hansa Research and Hansa Customer Equity: R K SWAMY, approved an amount of INR 33.342 crores for funding the proposed capital expenditure towards technological infrastructure from the Net Proceeds. R K SWAMY, Hansa Research, and Hansa Customer Equity are reviewing vendor quotations for capital expenditure on equipment, pending purchase agreements.
- Funding setting up of new CEC and CATI of their Company: The Company has approved an amount of INR 21.736 crores for funding the proposed capital expenditure towards (i) setting up a new call center, with over 600 additional seats and (ii) setting up a hybrid 2000 seater customer experience centers.
- General corporate purposes: The Company plans to deploy the balanced funds towards the general corporate goals, including funding growth, enhancing marketing, managing corporate contingencies, covering business expenses, servicing debt, and addressing any other emerging needs.
R K Swamy Limited IPO Risks and Challenges
R K SWAMY’s vulnerability lies in critical client dependence and potential budget reductions. Economic uncertainties, digital reliance, and industry complexities pose risks. Adaptation to market changes, client needs, and compliance is crucial for sustained business, financial health, and growth.
- R K SWAMY’s revenue heavily depends on critical clients. Failure to retain or diversify the client base, or if crucial clients reduce marketing budgets, may materially and adversely impact business, revenue growth, and financial health.
- Their reliance on specific sectors exposes them to economic risks, including reduced advertising expenditure during downturns. Changes in client business models, competition, and budget shifts pose challenges. Economic uncertainties may impact their revenue, requiring effective risk mitigation.
- Their revenue heavily relies on digital operations, accounting for 78.13% in 2023. While industry trends suggest growth, the dynamic and competitive nature, technological changes, and regulatory oversight pose risks. Fluctuations in client marketing expenditure, failure to adapt to digital trends, and compliance with privacy laws could adversely affect their business, financial condition, and results of operations.
R K Swamy Limited IPO – Industry & Market Potential
India’s rapid digital infrastructure growth, driven by the ‘Digital India’ campaign and 4G/5G network expansion, enhances connectivity. Increased internet, smartphone use, and digital payments create marketing opportunities, especially in rural areas, fostering industry growth.
The marketing services industry is driven by the increasing emphasis on analytics, leveraging unstructured data and technology. Growth is fueled by demand for digital and social media marketing, experiential marketing, and the rising importance of customer experience in a competitive business landscape.
India’s digital media landscape experiences growth with smartphone usage, widespread internet access, and diverse advertising channels. TV remains dominant, but the rise of digital media is expected. Print, OOH, radio, airport, and cinema advertising offer varied platforms for engaging diverse audiences.
R K Swamy Ltd IPO – Type of Offer
R K SWAMY plans a fresh issue of shares, seeking INR 173 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 87 lakhs existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 215 crores. The company intends to utilize the proceeds from the fresh issue for working capital, DVCP Studio, IT infrastructure, CEC and CATI centers, and general corporate purposes.
2. Offer for sale: R K SWAMY is offering to sell 87 lakhs existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in million) |
| Srinivasan K Swamy | 1,788,093 |
| Narasimhan Krishnaswamy | 1,788,093 |
R K Swamy Ltd IPO Offer Size
The offer size of R K SWAMY’s is INR 423 crores. This comprises a new issuance of shares totaling INR 173 crores and the sale of 87 lakhs of existing equity shares. The funds generated will be utilized for working capital, DVCP Studio, IT infrastructure, CEC and CATI centers, and general corporate purposes.
R K Swamy Limited IPO Allotment Structure
R K SWAMY’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Eligible Employees: A portion of the issue is reserved for eligible employees.
How to apply for an R K SWAMY IPO?
To apply for the R K SWAMY IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the R K SWAMY IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the R K SWAMY’s IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check R K SWAMY IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the R K SWAMY IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the R K SWAMY IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the R K SWAMY IPO:
Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the R K SWAMY IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
R K SWAMY IPO Offer Registrar
The registrar for the R K SWAMY IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium Tower B, Plot No. 31, 32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad, 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
R K SWAMY IPO FAQs
The allotment date of the R K Swamy Limited IPO is March 7, 2024.
The price band of the R K Swamy Limited IPO is INR 270 to 288 per share.
R K SWAMY plans to launch an Initial Public Offering (IPO). This comprises a new share issuance of INR 173 crores and the sale of 87 lakhs of existing equity shares. The funds generated will be utilized for working capital, DVCP Studio, IT infrastructure, CEC and CATI centers, and general corporate purposes.
The listing date of the R K Swamy Limited IPO is March 12, 2024.
