On March 12, shares of R K Swamy made a lackluster debut on the bourses, opening at Rs 250, marking a discount of 13.1 percent from the issue price of Rs 288. This listing fell short of analyst expectations, who had anticipated the shares to debut at Rs 300-310, representing a premium of approximately 5 percent.
Despite the subdued debut, the initial public offering (IPO) garnered decent investor interest, with a subscription of 25.78 times. Data from the subscription reveals that participants applied for 21.22 crore equity shares against the IPO size of 82.32 lakh equity shares.
Retail investors and non-institutional investors (high net worth individuals) played a significant role in the subscription, subscribing 33.31 times and 34.24 times their allotted quotas, respectively. Qualified institutional buyers also showed strong interest, subscribing 20.58 times the portion reserved for them.
The public offer consists of fresh shares totaling Rs 173 crore and an offer-for-sale (OFS) of 87 lakh equity shares by promoters and investors valued at Rs 250 crore. Promoters Srinivasan K Swamy and Narasimhan Krishnaswamy will each be selling 17,88,093 equity shares in the OFS, while investors Evanston Pioneer Fund LP will be offloading 44,45,714 equity shares and Prem Marketing Ventures LLP 6,78,100 equity shares through OFS.
The funds garnered through the issue will be utilized for various objectives, including funding capital expenditure, addressing working capital requirements, investing in IT infrastructure, and establishing new customer experience centers. Additionally, a portion of the proceeds will be allocated for general corporate purposes.
Established in 1973, R K Swamy specializes in integrated marketing communications, customer data analysis, full-service market research, and syndicated studies.
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