R K Swamy IPO

About R K Swamy IPO

R K Swamy Limited IPO is an IPO of TBA. It consists of an offer for sale of up to 8,700,000 equity shares and a fresh issue aggregating up to ₹173 crores. The lot size and price range are TBA. The listing of shares will take place on TBA. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of R K Swamy IPO

• Funding working capital requirements of the company.
• Funding capital expenditure to be incurred by the company for setting up a digital video content production studio (DVCP Studio).
• Funding investment in IT infrastructure development of the company, and their material subsidiaries, Hansa Research and Hansa Customer Equity.
• Funding the setting up of new customer experience centres (CEC) and computer-aided telephonic interview centres (CATI) of the company.
• General corporate purposes.

Industry Outlook

The marketing services market in India grew at a CAGR of 5.6% between the fiscals 2019 and 2023, reaching ₹1,93,600 crore in fiscal 2023, and is expected to grow at a CAGR of 12.5–14.5% until fiscal 2028. This increase was supported by growth in themarketing spends of Indian corporates, a rise in company revenues, and an increase in gross domestic output in the economy. Advertisements contribute significantly to the overall marketing services industry, and as the corporate revenue of 748 listed entities grew at a CAGR of 8.9% between the fiscals 2019 and 2023, corporate spends on marketing activities also increased.

The overall market size for Full-Service Market Research in India grew at a 6.7% CAGR between fiscal 2019 and fiscal 2023, from ₹7,336 crore to ₹9,502 crore in fiscal 2023, and is expected to grow at a CAGR of 9–10% to reach ₹14,000–15,000 crore by fiscal 2028. Prior to the pandemic, the industry grew at a CAGR of 10–12% for a few years, supported by growth in both syndicated reports and customised assignments, before shrinking as business declined in both segments due to the pandemic. The industry adapted quickly with upgraded infrastructure to enable a ‘work-from-anywhere’ model and saw a strong turnaround from fiscal 2021.

Company Information

R K Swamy Limited is one of the leading integrated marketing service groups in India, offering a single-window solution for creative, media, data analytics, and market research services. They are ranked 8th in terms of estimated operating revenue among the integrated marketing communications services groups operating in India. They offer a comprehensive range of services in the following interrelated and complementary business segments:

(i) Integrated Marketing Communications,
(ii) Customer Data Analytics and Marketing Technology (Customer Data Analytics and MarTech); and
(iii) Full-Service Market Research (including customer experience measurement) and Syndicated Studies (Full-Service Market Research).

Risks of R K Swamy Limited IPO

• Companies may undertake their advertising projects, market research, and data analysis functions in-house by setting up dedicated departments to service their marketing needs, thus reducing their prospective customer base. This may adversely affect their revenues and growth prospects.

• Certain services they offer are dependent on the availability of space or sites for publishing of ads, other media purchases, and production costs. Any non-availability or significant increase in the prices of such ad space or sites, or other such purchases, may adversely affect their business, results of operations, and financial condition.

• They are dependent on information technology systems, and any cybersecurity breaches could adversely impact their reputation, operational expenses, and profits.

Anchor Investor Information

Anchor Investor Bidding Date: 1 March 2024

IPO Registrar and Book Running Lead Managers

Book running lead managers:

SBI Capital Markets Limited IIFL Securities Limited Motilal Oswal Investment Advisors Limited

Registrar for the IPO is KFin Technologies Limited

Business Model

The company earns its revenue through the following source:

• Offering a comprehensive range of services in the following interrelated and complementary business segments: (i) Integrated Marketing Communications, (ii) Customer Data Analytics and Marketing Technology (“Customer Data Analytics and MarTech”); and (iii) Full-Service Market Research (including customer experience measurement) and Syndicated Studies (“Full-Service Market Research”).

Company Growth Trajectory

Their revenue from the sale of Integrated Marketing Communications services for the six months ended 30 September 2023 was ₹62.08 crore. Their revenue from the sale of Customer Data Analytics and MarTech services for the six months ended 30 September 2023 was ₹43.22 crore. Their revenue from the sale of Full-Service Market Research services for the six months ended 30 September 2023 was ₹35.80 crore. Their other income for the six months ended 30 September 2023 was ₹1.45 crore. Their profit after tax for the six months ended 30 September 2023 was ₹7.93 crore.

Company Market Position

They are ranked 8th in terms of estimated operating revenue among the integrated marketing communications services groups operating in India. Their solutions and offerings are serviced by over 2,533 employees spread across 12 offices and 12 field locations in twelve cities, across their three business segments. They have a track record of over five decades and have been serving leading companies such as Aditya Birla Sun Life AMC Limited, Cera Sanitaryware Limited, Dr. Reddy’s Laboratories Limited, E.I.D. Parry (India) Limited, Fujitsu General (India) Private Limited, Gemini Edibles and Fats India Limited, Havells India Limited, Hawkins Cookers Limited, Himalaya Wellness Company, Hindustan Petroleum Corporation Limited, ICICI Prudential Life Insurance Company Limited, IFB Industries Limited, Mahindra and Mahindra Limited, Oil and Natural Gas Corporation Limited, Royal Enfield (a unit of Eicher Motors), Shriram Finance Limited, Tata Play Limited, UltraTech Cement Limited, and Union Bank of India.

How To Check Allotment Status of R K Swamy Limited IPO?

You can check the allotment status of shares either on the website of the Securities and Exchange Board of India (SEBI) or on the website of the registrar KFin Technologies Limited. To check the status on the SEBI website:

• Visit the SEBI website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is R K Swamy Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the KFin Technologies Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select R K Swamy Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Belrise Industries IPO?

Here are the steps to apply for Belrise Industries IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.