SEBI Gives Nod to RK Swamy for IPO Fundraising

RK Swamy Ltd. approved for ₹2,150 million IPO by SEBI. Funds for working capital, infrastructure, and studios. Book runners: SBI Cap, IIFL Sec, Motilal Oswal. FY23 net profit ₹31.26 crore, revenue ₹292.6 crore
SEBI Gives Nod to RK Swamy for IPO Fundraising

RK Swamy Limited, a marketing services provider from Tamil Nadu, has received approval from the Securities and Exchange Board of India (SEBI) for its planned initial public offering (IPO).

The IPO includes a fresh issue of up to ₹2,150 million and the sale of up to 8,700,000 equity shares by existing shareholders. The offer for sale comprises shares from Srinivasan K Swamy, Narasimhan Krishnaswamy, Evanston Pioneer Fund L.P., and Prem Marketing Ventures LLP.

The company intends to use the funds raised for working capital, capital expenditure for a digital video content production studio, investment in IT infrastructure, and the setup of customer experience centers. SBI Capital Markets Limited, IIFL Securities Limited, and Motilal Oswal Investment Advisors Limited are the lead managers for the IPO.

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SEBI issued an observation letter confirming the eligibility of RK Swamy’s IPO documents, submitted on August 11, 2023. The letter allows the company to launch its public offering within a year from the date of receiving it.

Founded by RK Swamy in 1973, the company is recognized as one of India’s top 10 integrated marketing communications services groups. It has a legacy of over five decades, serving notable companies such as Aditya Birla Sun Life AMC, Havells India, HPCL, Mahindra & Mahindra, and Union Bank of India.

Regarding financial performance, RK Swamy reported a consolidated net profit of ₹31.26 crore for the fiscal year ending in March FY23, up from ₹19.26 crore the previous year. Consolidated revenue from operations also increased significantly, reaching ₹292.6 crore compared to ₹234.4 crore in the last year.

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