Want to Invest in R K Swamy IPO? Read This First

Key Highlights:

• R K Swamy is India's leading integrated marketing services provider with more than five decades of experience
• R K Swamy IPO Details:
  • Issue size - Rs 423.56 crores
  • Price range - Rs 270 to Rs 288
  • IPO closes on - 6th March, 2024
  • Total shares - 14,706,944
• Evaluate the risks and keenly evaluate valuations before investing

R K Swamy, one of India's leading integrated marketing service providers, is coming out with its initial public offering on 4th March. The company offers diverse creative media, market research and data analytics services and has over five decades of experience in offering integrated marketing communication solutions. The IPO's issue size is Rs 423.56 crores. If you are looking forward to investing in this IPO, read this blog to learn the various aspects of this IPO.

IPO Details

R K Swamy Ltd's IPO, scheduled for launch on 4th March, will conclude on 6th March. The price range is set between Rs 270 and Rs 288 per equity share, with the market lot size at 50 shares. If you are an individual retail investor, you can apply for a maximum of 13 lots, equivalent to 650 shares amounting to Rs 1,87,200, considering the upper price band.

While the total issue comprises 14,706,944 shares, the fresh issue consists of 6,006,944 shares. Offer for sale comprises 8,700,000 shares. 75% of the offer is for qualified institutional buyers, while 10% is for retail investors. 15% of the offer is for non-institutional investors.

Objectives of the Issue

The primary aim of the IPO is to use:

• Rs 87 crore for working capital
• Rs 10.985 crore for setting up a DVCP Studio
• Rs 33.342 crore for augmenting its IT infrastructure
• Rs 21.736 crore for setting up a new call center

The company will use the remaining proceeds for addressing general corporate purposes.

Risks Involved

As an investor, you must be aware of the risks of investing in a company’s IPO. Some of the risks associated with R K Swamy are:

• Its revenues depend heavily on critical clients. It can adversely affect the company's business and financial health if it fails to retain or diversify its client base or if its marquee clients reduce marketing budgets.
• The company's reliance on specific sectors exposes the company to economic risks. Economic uncertainties may impact the company's revenues.
• The firm's revenues depend heavily on digital operations. Failure to adapt to digital trends and compliance with privacy laws can negatively impact the company's financial conditions and business.

Should You Invest in This IPO?

India has experienced rapid growth in its digital infrastructure, propelled by 4G/5G network expansion, the Digital India campaign, increased internet and smartphone penetration and digital payments. There is an increased demand for digital and social media marketing across various sectors.

These developments poise R K Swamy to take strategic advantage in the coming days, and investing in this IPO can enhance wealth creation for investors. That said, you need to evaluate the company's valuations carefully and have a holistic view of your financial objectives and risk appetite before investing. If you wish to apply for this IPO, you can easily do so through the Kotak Securities app. Login with your credentials and visit the IPO section to invest.

Disclaimer: _This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with financial professionals before making any investment decisions. _