Issue Date
04 Mar - 6 Mar'24
Investment/lot
₹ 14400
Price Range
270 - 288
Lot Size
50
IPO Size
₹ 424.34 Cr
Listing On
12 Feb'24
Issue Price
288
Listed Price
₹ 250
Retail Gain/Listing Gain
▼-13.19%
Start date
04/03/2024
End date
06/03/2024
Allotment of bids
07/02/2024
Refund Initiation
11/02/2024
Listing on exchange
12/02/2024
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.
Detail | Information |
---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Up to 8,700,000 Equity Shares |
Fresh Issue | Aggregating up to ₹ 215 crores |
EPS (₹) For the year ended March 31, 2023 | 7.03 |
Investor Category | Shares Offered |
---|---|
QIBs Share Offered | Not less than 75% |
Non-Institutional Investors (NIIs) | Not more than 15% |
Retail Individual Investors | Not more than 10% |
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.
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).
Integrated marketing services provider serving clients for 50 years.
They have built and nurtured their relationships with media partners over five decades. They have been able to leverage these relationships consistently for the benefit of their clients, in terms of turnaround time, better pricing, value additions such as improved placement, enhanced sponsorship benefits, and increased media engagement.
15-year track record in the Data Analytics and Marketing Technology segment, with a proven ability to produce digital content at scale; a leader in the business of market research.
They deploy various technologies to improve the operational efficiencies of their business, such as AI-driven insights to identify clients’ problems through machine learning, in-house algorithms, and multiple analytical techniques, helping clients achieve better business results. They offer an array of solutions, including Marketing Automation Platforms, Media Planning Tools, Customer Relationship Management (CRM) Systems, Data Analytics Tools, AI, and machine learning tools.
Well-diversified customer base with long-standing relationships.
They have catered to over 4,000 client organisations over the years and served over 380 clients in the six months that ended on 30 September 2023. They have a well-diversified client base covering leading brands across multiple industry verticals.
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.
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Parameter | R K Swamy Limited | Affle (India) Limited | Latent View Analytics Limited |
---|---|---|---|
Total Income for the year ended March 31, 2024 (₹ in crores) | 299.913 | 1488.280 | 594.528 |
P/E | --- | 60.18 | 49.99 |
EPS (Diluted)(₹) | 7.03 | 18.43 | 7.71 |
Return on Net Worth (%) | 22.20 | 16.73 | 12.87 |
NAV per share (₹) | 31.67 | 110.11 | 58.93 |
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
The company earns its revenue through the following source:
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.
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.
Parameter | FY21 | FY22 | FY23 |
---|---|---|---|
Revenue from operations (₹ crores) | 173.546 | 234.413 | 292.613 |
Total Income (₹ crores) | 2.88 | 4.44 | 6.29 |
Profit Before Tax (₹ crores) | 4.676 | 24.700 | 42.580 |
Net profit/(loss) (₹ crores) | 3.077 | 19.255 | 31.258 |
EBITDA (₹ crores) | 28.826 | 44.422 | 62.906 |
EPS (₹) | 0.69 | 4.33 | 7.03 |
Parameter | FY21 | FY22 | FY23 |
---|---|---|---|
Profit before tax (₹crores) | 4.676 | 24.700 | 42.580 |
Net Cash from Operating Activities (₹ crores) | 49.945 | 64.009 | 29.165 |
Net Cash from Investing Activities (₹ crores) | (21.571) | (21.220) | (13.829) |
Net Cash from Financing Activities (₹ crores) | (27.607) | (33.487) | (44.263) |
Cash and Cash Equivalents (₹ crores) | 28.860 | 38.162 | 9.235 |
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:
Follow these steps to know the allotment status on the registrar’s website:
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Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
R K Swamy IPO will list on 2024-12-03.
424.34 is the issue size of R K Swamy IPO.
The minimum lot size is 50 shares and the investment required is ₹14400.
The price band of R K Swamy IPO is ₹270 to ₹288.
You can read more about R K Swamy and its IPO from the company’s red herring prospectus (RHP) here.
The IPO opens for subscription on 4 March 2024 and closes on 6 March 2024.
KFin Technologies Limited is the registrar for this IPO.
You may read more about R K Swamy Limited and its IPO from the company’s draft red herring prospectus (DRHP) here.
R K Swamy's initial public offer amounts between ₹407.9 Cr and ₹423.56 Cr.