RK Swamy entry tomorrow: RK Swamy's IPO, whose share allotment was completed on March 7, will be listed on both BSE and NSE on March 12, Tuesday. The IPO worth Rs 423.56 crore was opened for public subscription between March 4 and 6. Ahead of the listing, the gray market is currently pointing to a flat return for the IPO.
Investors can check their IPO allotment status by visiting the registrar's portal, Kfin Technologies Ltd.
RK Swamy IPO GMP today
According to market observers, unlisted shares of RK Swamy are currently trading at a zero premium to the issue price in the gray market. The gray market premium or GMP of zero means that the gray market expects no profits on the trading day. The GMP is based on market sentiment and is constantly changing.
“Gray market premium” indicates investors’ willingness to pay more than the issue price.
Prashanth Tapse, Senior Vice President (Research), Mehta Equities, said: “Given the bullish market sentiment and good subscription demand from all investor groups in the final part of the IPO process, we expect a flat listing at the issue price of Rs 288 a piece.” RK Swamy saw decent demand for subscriptions despite knowing the seasonality and volatility of the business model.”
He added that the flat listing was justified due to cyclicality risk and that the company is the leading integrated marketing services group in India and has been providing a single-window solution for creative, media, data analytics and market research services in the industry for over five decades.
“We believe RK Swamy would get more traction post-listing as it would be the first of its kind and a pure one-stop marketing solutions company to be listed on the stock exchange, with no comparable Apple-to-Apple competitors. The company primarily serves the sector, which is inherently volatile, but growth has been good in recent years, hence the call to allotted investors is HOLD for the long term, while those investors who want to add to the listing date, wait and see to monitor the space after listing “We need to check the performance before taking any action,” Tapse said.
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RK Swamy IPO details
Integrated marketing services company RK Swamy's IPO was subscribed 25.78 times on the last day of subscription, March 6. The Rs 423.56-crore IPO received offers for 21,22,37,750 shares against 82,32,946 shares on offer.
The non-institutional investor portion was subscribed 34.24 times while the retail investor category (RIIs) was subscribed 33.31 times. The Qualified Institutional Buyers (QIBs) portion received 20.58x the subscription. The IPO comprised a fresh issue of up to Rs 173 crore and an offering component of up to 87,00,000 shares.
The company's IPO had a price range of Rs 270 to Rs 288 per share. RK Swamy Ltd on Friday said it has raised Rs 187 crore from anchor investors.
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The funds raised through the new issue would be used for setting up a digital video content production studio, setting up new customer experience centers and computer-assisted telephone interview centers and for general corporate purposes. The funds would also be used for investments in IT infrastructure development by RK Swamy Ltd and its subsidiaries Hansa Research and Hansa Customer Equity.
RK Swamy Ltd is the largest Indian-majority integrated marketing services provider in India, offering a single-window solution for creative, media, data analytics and market research services. SBI Capital Markets, IIFL Securities and Motilal Oswal Investment Advisors were the managers of the offer.
Mohammad HarisHaris is Deputy News Editor (Business) at news18.com. He writes on various topics…Read more
first published: March 11, 2024, 12:37 IST
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