R K Swamy lists at a discount at Rs 250 per share on NSE

R K Swamy is engaged in the business of integrated marketing communications, customer data analysis, full-service market research, and syndicated studies, debuted on the Indian stock market today.

The R K Swamy stock opened at Rs 252 per share on the BSE, reflecting a 12.5% discount over the final issue price of Rs 288 per share. The current market capitalization on the BSE stands at Rs 1390.90 crore. Presently, the stock is trading at Rs 275.55 per share on the BSE. Conversely, on the NSE, the stock debuted at Rs 250 per share, indicating a 13.19% discount.

IPO Proceeds:

The net proceeds from the Fresh Issue will be allocated as follows: first, to support working capital requirements; second, for capital expenditure in establishing a digital video content production studio (DVCP Studio); third, for investment in IT infrastructure development for the company and its Material Subsidiaries, Hansa Research, and Hansa Customer Equity; fourth, to facilitate the establishment of new customer experience centers (CEC) and computer-aided telephonic interview centers (CATI); and finally, for general corporate purposes.

Business Overview:

R K Swamy Limited is engaged in the business of integrated marketing communications, customer data analysis, full-service market research, and syndicated studies. R K Swamy is a data-driven, integrated marketing services provider that extensively leverages digital initiatives across all areas of its business.

The company has a good client base including 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, and Hawkins Cookers Limited and so on.

Subscription details:

On March 6, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 25.78 times. The public issue received remarkable interest, with the retail category being subscribed 33.31 times, while the QIB and NII categories reached a subscription rate of 20.58 and 34.24 times respectively.

The IPO price band was between Rs 270 to Rs 288 per share, with a face value of Rs 5 per share and a lot size of 50 shares. The total size of the company’s IPO was Rs 423.56 crore, and the final share issue price was fixed at Rs 288 each.

Conclusion:

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have been disappointed on the listing day itself and may choose to book the position. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.