R K Swamy, a home grown advertising agency has proposed the opening of its Initial Public Offering on March 4, this year.
The company intends to open its IPO with Equity Shares of Face Value of Rs 5 each for cash at a Price Band of Rs 270- 288 per Equity Share (including a share premium).
While the Bids for R K Swamy’s IPO can be made for a minimum of 50 Equity Shares and in multiples of 50 Equity Shares thereafter, the company plans to open Bid/Offer on March 4 and close the same on March 6.
The Anchor Investor Bidding Date shall be Friday, March 1, 2024.
The Offer comprises a Fresh Issue of Equity Shares aggregating up to Rs 1,730 million and an Offer For Sale of up to 8,700,000 Equity Shares:
- Up to 1,788,093 Equity Shares by Srinivasan K Swamy,
- Up to 1,788,093 Equity Shares by Narasimhan Krishnaswamy,
- Up to 4,445,714 Equity Shares by Evanston Pioneer Fund, and
- Up to 678,100 Equity Shares by Prem Marketing Ventures.
The Net Proceeds from the Fresh Issue are proposed to be used as follows:
- Funding working capital requirements of the Company- Rs 540.00 million
- Funding capital expenditure to be incurred by the Company for setting up a digital video content production studio- Rs 109.85 million
- Funding investment in IT infrastructure development of the Company, and Material Subsidiaries, Hansa Research Group and Hansa Customer Equity- Rs. 333.42 million
- Funding setting up of new customer experience centres and computer aided telephonic interview centres of the Company Rs. 217.36 million
- General corporate purposes
The Offer also includes a reservation of Equity Shares, aggregating up to Rs 75 million for subscription by Eligible Employees.
That being said, R K Swamy is also in consultation with the Book Running Lead Managers- SBI Capital Markets, IIFL Securities, and Motilal Oswal Investment Advisors, for offering a discount of Rs 27 per equity share on the Offer Price to Eligible Employees bidding in the Employee Reservation Portion.
