Integrated marketing services provider RK Swamy Limited, based in Tamil Nadu, has received approval from the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO). The IPO includes a fresh issue, aggregating up to ₹2,150 million, and an offer for sale of up to 8,700,000 equity shares by selling shareholders.
**Key Details of RK Swamy Limited IPO:**
– **Fresh Issue:** Up to ₹2,150 million.
– **Offer for Sale:** Up to 8,700,000 equity shares, comprising shares from various selling shareholders.
– **Use of Proceeds:** The net proceeds from the IPO will be utilized for funding working capital, capital expenditure for setting up a digital video content production studio, investment in IT infrastructure development, and funding the setup of new customer experience centers and computer-aided telephonic interview centers. Additionally, funds will be allocated for general corporate purposes.
– **Book Running Lead Managers:** SBI Capital Markets Limited, IIFL Securities Limited, and Motilal Oswal Investment Advisors Limited.
– **Observation Letter:** SEBI issued an observation letter to RK Swamy’s IPO documents on January 5, 2024, confirming the company’s eligibility to launch its public offering within one year from the date of receiving the observation letter.
**About RK Swamy Limited:**
Founded by the late RK Swamy in 1973, RK Swamy Limited is recognized as one of the top 10 diversified integrated marketing communications services groups in India. With a legacy spanning over five decades, the company provides services to prominent companies across various industries.
**Financial Performance:**
In terms of financial performance, for the fiscal year ending March FY23, RK Swamy Limited posted a consolidated net profit of ₹31.26 crore, representing a significant increase from the ₹19.26 crore recorded in the preceding year. The consolidated revenue from operations also witnessed substantial growth, reaching ₹292.6 crore compared to the previous year’s figure of ₹234.4 crore.
**Legacy and Clientele:**
RK Swamy Limited has a legacy of more than five decades and has served notable companies, including Aditya Birla Sun Life AMC, Cera Sanitaryware, Dr. Reddy’s Laboratories, Havells India, HPCL, Mahindra & Mahindra, ONGC, Royal Enfield, Ultratech Cement, and Union Bank of India.
The IPO approval from SEBI marks a significant milestone for RK Swamy Limited, allowing the company to raise capital for its expansion plans and strategic initiatives outlined in the IPO prospectus.
