Integrated marketing services provider RK Swamy Limited, founded 1973, is gearing up for an Initial Public Offering (IPO) to aid its future growth and expansion.
The Indian majority-owned company initiated the process to go public with the filing of its Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) earlier this week.
The IPO will see fresh issue to the tune of up to Rs.215 crore, and an offer for sale of up to 8,700,000 equity shares by existing shareholders Srinivasan K Swamy (CMD), Narasimhan Krishnaswamy (Group CEO), Evanston Pioneer Fund L.P. and Prem Marketing Ventures LLP.
The company intends to utilise funds raised for working capital, capex for a digital video content production studio, investment in IT infrastructure development of RK Swamy Limited and the material subsidiaries Hansa Research and Hansa Customer Equity, setup of new customer experience centres and computer aided telephonic interview centres as well as for general corporate purposes, according to the draft papers filed.
RK Swamy has been in the business of advertising for more than five decades, offering a single-window solution for creative, media, data analytics and market research services. It had entered into a JV with BBDO of the Omnicom Group before deciding to go independent after 37 years in 2022.
During FY23, RK Swamy has declared revenue of Rs 293 crore and a profit of Rs 31 crore.
