RK Swamy Ltd, the Chennai-based advertising and marketing communications main on Wednesday mounted the worth band at Rs 270-288 per share for its Rs 423-crore Initial Public Offering (IPO), changing into the primary within the class to go public.
The preliminary share sale will open for public subscription on March 4 and shut on March 6. The bidding for anchor buyers will open for a day on March 1, the corporate stated in a press release.
The Rs 423.56-crore IPO includes a recent concern of shares aggregating as much as Rs 173 crore and an Offer For Sale (OFS) of as much as 87 lakh fairness shares by promoting shareholders price Rs 250.56 crore on the higher finish of the worth band.
Those providing shares within the OFS are — Srinivasan Ok Swamy, Narasimhan Krishnaswamy, Evanston Pioneer Fund LP, and Prem Marketing Ventures LLP.
Srinivasan Ok Swamy (Sundar Swamy) who’s the chairman & managing director will probably be promoting as much as 17,88,093 shares via the OFS. Narasimhan Krishnaswamy or Shekar Swamy, who’s the group CEO and complete time director, will offload as much as 17,88,093 shares.
The brothers together with their households collectively personal 86 % of the pre-concern fairness of the corporate which can come right down to 66 % submit-concern, Sundar Swamy informed PTI.
The brothers together with their households collectively personal 86 per cent of the pre-concern fairness of the corporate which can come right down to 66 per cent submit-concern, Sundar Swamy informed PTI.
Chief monetary officer Rajeev Newar stated the exterior buyers who will paring or exiting their stake are the US-primarily based Evanston Pioneer Fund, which will probably be promoting 4,445,714 shares. Pre-issue the fund owns 14.04 per cent and can retain solely 4.04 per cent submit-concern.
The different exterior investor is Prem Marketing Ventures, which will probably be promoting its total 1.56 per cent or 6,78,100 shares holding within the firm via the OFS.
Both these funds entered the corporate in 2018 by investing within the erstwhile holding firm of RK Swamy, Newar stated.
Founded by the late RK Swamy, and acknowledged because the grand outdated man of Indian promoting, the corporate was initiated as RK Swamy Advertising Associates in Chennai in 1973.
The firm claims to be one of many prime 10 diversified built-in advertising and marketing communications companies corporations within the nation and the biggest Indians-owned within the nation and boasts of a legacy spanning over 5 a long time.
Some of its shoppers embody HPCL, ICICI Prudential Life, Mahindra & Mahindra, ONGC, Royal Enfield, Tata Play, Ultratech Cement, and Union Bank of India, Aditya Birla Sun Life AMC, Cera Sanitaryware, Dr Reddy’s, Fujitsu General, Havells India, Hawkins Cookers.
The proceeds from the recent concern will used to fund working capital necessities (Rs 54 crore); funding capital expenditure for establishing a digital video content material manufacturing studio (Rs 10.9 crore); funding funding in IT infrastructure of the corporate and its subsidiaries Hansa Research and Hansa Customer Equity (Rs 33.34 crore).
Funds may even be used to arrange of recent buyer expertise centres and pc-aided telephonic interview centres (Rs 21.73 crore).
The firm stated that buyers can bid for at least 50 fairness shares and in multiples of fifty fairness shares thereafter.
During fiscal 2023, one in all India’s pioneering promoting businesses RK Swamy launched over 818 inventive campaigns on behalf of shoppers throughout numerous media shops, dealt with over 97.69 terabytes of information, and performed over 2.37 million shopper interviews throughout quantitative, qualitative, and telephonic surveys.
The firm posted a consolidated internet revenue of Rs 31.26 crore in FY23, up from Rs 19.26 crore within the previous 12 months. Consolidated income from operations rose to Rs 292.6 crore in FY23 from Rs 234.4 crore within the earlier 12 months.
SBI Capital Markets, IIFL Securities, and Motilal Oswal Investment Advisors are the ebook-working lead managers to the problem.
(This story has not been edited by News18 workers and is printed from a syndicated information company feed – PTI)
