RK Swamy IPO Approved by Sebi: Details & Key Highlights

New Delhi, Jan 9 (PTI) Integrated marketing services firm RK Swamy Ltd has received capital markets regulator Sebi's nod to mobilise funds through an initial public offering (IPO).

The company's proposed IPO comprises a fresh issue of shares aggregating up to Rs 215 crore and an offer for sale (OFS) of up to 87 lakh equity shares by selling shareholders, according to the draft red herring prospectus (DRHP).

Those offering shares in the OFS are -- Srinivasan K Swamy, Narasimhan Krishnaswamy, Evanston Pioneer Fund L.P, and Prem Marketing Ventures LLP.

RK Swamy Ltd, which filed draft IPO papers with the markets regulator in August, obtained its observation letter on January 5, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.

In Sebi's parlance, obtaining the observation letter means its go-ahead to float the public issue.

As per the draft papers, funds raised through the fresh issue would be used for setting up a digital video content production studio, establishing new customer experience centres and computer-aided telephonic interview centres as well as for general corporate purposes.

Also, the funds would be utilised for investment in the IT infrastructure development of RK Swamy Ltd and its subsidiaries Hansa Research and Hansa Customer Equity.

RK Swamy Ltd is the largest Indian majority-owned integrated marketing services provider in India, offering a single-window solution for creative, media, data analytics, and market research services.

During Fiscal 2023, one of India's pioneering advertising agencies RK Swamy released over 818 creative campaigns on behalf of clients across various media outlets, handled over 97.69 terabytes of data, and conducted over 2.37 million consumer interviews across quantitative, qualitative, and telephonic surveys.

SBI Capital Markets, IIFL Securities, and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.