On March 4, the first day of bidding, the initial public offering (IPO) of marketing communications firm RK Swamy was subscribed 53 percent. Retail investors oversubscribed their portion by 2.2 times, while non-institutional investors bid for 51 percent of their allotted shares.
The Rs 423.56 crore IPO includes a fresh issue of 60.06 lakh shares valued at Rs 173 crore and an offer-for-sale of 87 lakh shares worth Rs 250.56 crore.
The price range for the offer, concluding on March 6, is set at Rs 270-288 per share. The promoters of the company are Srinivasan K Swamy and Narasimhan Krishnaswamy.
Allocation details for the RK Swamy IPO reveal that up to 75 percent of the issue has been reserved for qualified institutional buyers, with 10 percent earmarked for retail investors and the remaining 15 percent allocated to non-institutional investors.
Prior to the IPO launch, the company secured Rs 187.22 crore through its anchor book on March 1. Nippon Life India emerged as the top institutional investor in the anchor book, acquiring shares worth Rs 50.03 crore, followed by Aditya Birla Sun Life Insurance Company with Rs 20 crore worth of shares.
Other notable participants in the anchor book included Societe Generale, Citigroup Global Markets, Copthall Mauritius Investment, Goldman Sachs, BNP Paribas Financial Markets, LIC Mutual Fund, Pinebridge Global Funds, Bajaj Allianz Life Insurance Company, JM Financial Mutual Fund, and SBI General Insurance Company.
Drawing from over five decades of expertise in diversified integrated marketing communications services, RK Swamy intends to allocate Rs 54 crore of the net fresh issue proceeds towards fulfilling working capital needs. Additionally, Rs 10.98 crore will be dedicated to establishing a DVCP studio, Rs 33.34 crore for investment in IT infrastructure development, and Rs 21.74 crore for the establishment of new CEC and CATI facilities for the company.