RK Swamy IPO: Issue subscribed 53 percent, first integrated marketing service group to go public in India

The initial public offering of marketing communications firm RK Swamy was subscribed 53 percent on March 4, the first day of bidding. The retail portion was booked 2.2 times and non-institutional investors had bid 51 percent of their allotted quota of shares, Moneycontrol reports.

The company is the first integrated marketing service group to go public in India.

The Rs 423.56 crore IPO comprises a fresh issue of 60.06 lakh shares worth Rs 173 crore and an offer-for-sale of 87 lakh shares worth Rs 250.56 crore.

The price band for the offer, which closes on March 6, has been fixed at Rs 270-288 per share. The promoters of the company are Srinivasan K Swamy and Narasimhan Krishnaswamy.

Up to 75 percent of the issue has been reserved for qualified institutional buyers, 10 percent for retail investors, and the remaining 15 percent for non-institutional investors.

Ahead of the IPO, the company raised Rs 187.22 crore through its anchor book on March 1. Nippon Life India was the largest institutional investor in the anchor book, picking Rs 50.03 crore worth of shares followed by Aditya Birla Sun Life Insurance Company, which bought Rs 20 crore worth of shares.

Societe Generale, Citigroup Global Markets, Copthall Mauritius Investment, Goldman Sachs, BNP Paribas Financial Markets, LIC Mutual Fund, Pinebridge Global Funds, Bajaj Allianz Life Insurance Company, JM Financial Mutual Fund, and SBI General Insurance Company were the other investors participated in the anchor book.

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