About the Company:
RK Swamy Ltd is one of the leading integrated marketing service groups in India, offering a single-window solution for creative, media, data analytics and market research services.
Company was ranked 8th in terms of estimated operating revenue among the integrated marketing communications services groups operating in India.
Company’s Integrated Marketing Communications business uses the ‘R K Swamy’ as well as the ‘Hansa’ brands.
Company is a data driven integrated marketing services provider and all segments of our business use digital initiatives extensively.
During Fiscal 2023 , company released over 818 creative campaigns on behalf of our clients across various media outlets, handled over 97.69 terabytes of data and have conducted over 2.37 million consumer interviews across quantitative, qualitative and telephonic surveys.
Company aims to provide the highest levels of professional service to meet the continuous needs of our clients and aim to continue growing our capabilities with an unyielding focus on the needs of our clients.
Company’s solutions and offerings are serviced by over 2,533 employees spread across 12 offices and 12 field locations across twelve cities, across our three business segments.
Company offers following range of services:
- Integrated Marketing Communications,
- Customer Data Analytics and Marketing Technology.
- Full- Service Market Research (including customer experience measurement) and Syndicated Studies .
Company’s clients are primarily engaged in the following industries:
- Automotive.
- Banking, Financial Services and Insurance.
- Fast-moving consumer goods/consumer durables/retail/e-commerce.
Company’s Key operational metrics:
Company’s Subsidiaries:
Company’s Client List includes names like:
- Aditya Birla Sun Life AMC Ltd,
- Cera Sanitaryware Ltd,
- Dr. Reddy’s Laboratories Limited.
- E.I.D.–- Parry (India) Ltd.
- Fujitsu General (India) Private Ltd.
- Gemini Edibles and Fats India Ltd.
- Havells India Ltd.
- Hawkins Cookers Limited,
- Himalaya Wellness Company.
Company’s Founders:
Company was founded by the late Mr. R K Swamy in 1973, and is led by our Promoters, Srinivasan K Swamy (Sundar Swamy) and Narasimhan Krishnaswamy (Shekar Swamy), who have extensive experience of over 45 years and 37 years respectively in the advertisement and marketing services industry.
Company’s Promoters have held leadership positions in various industry forums such as the International Advertising Association, Advertising Agencies Association of India and the Asian Federation of Advertising Associations
Management Team:
- Mr. Srinivasan K Swamy (Designation: Chairman and Managing Director)
- Mr. Narasimhan Krishnaswamy (Designation: Group CEO and Whole Time Director)
Objectives of the Issue:
Offer For Sale: (Rs.250.56 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.173 cr)
- Funding working capital requirements of our Company.
- Funding capital expenditure to be incurred by the Company for setting up a digital video content production studio (“DVCP Studio”).
- Funding investment in IT infrastructure development of our Company, and our Material Subsidiaries, Hansa Research and Hansa Customer Equity.
- Funding setting up of new customer experience centres (“CEC”) and computer aided telephonic interview centres (“CATI”) of our Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding working capital requirements of our Company | 54 cr |
| Funding capital expenditure to be incurred by the Company for setting up a DVCP Studio | 10.98 cr |
| Funding investment in IT infrastructure development of our Company, and our Material Subsidiaries Hansa Research and Hansa Customer Equity |
33.34 cr |
| Funding setting up of new CEC and CATI of our Company | 21.7 cr |
Positives for the Company:
Integrated marketing services provider serving clients for 50 years.
- Company is one of the leading integrated marketing service groups in India, offering a single-window solution for creative, media, data analytics and market research services and have grown the businesses organically based on our response to market trends and client requirements progressively over the last five decades.
- Company has been focused on supporting the marketing activities of large corporates, state-owned enterprises, leading institutions and marketers, emerging Indian entrepreneurs and businesses.
- Company is a scalable, asset-light business with a stable financial profile with a track record of profitability and healthy cash flows.
Track record of 15 years in the Data Analytics and Marketing Technology segment and a leader in the business of market research.
- Company commenced a standalone customer data analytics business in 2008 through our subsidiary Hansa Customer Equity.
- Company has serviced over 200 clients since 2008 and have built this business organically and offer a comprehensive suite of services under Customer Data Analytics and MarTech segment.
Well established brands across segments with experienced Promoters and a professional Senior Management.
- The R K Swamy brand was established by company’s founder, R K Swamy in 1973. Through the efforts, reputation, guidance and experience of the Promoters, company has established the brands, “R K Swamy” and “Hansa”, in the field of marketing services in India.
Company has a well diversified customer base with long standing relationships.
- Company has catered over 4,000 client organisations over the years and have served over 380 clients in the six months ended September 30, 2023 and has a well-diversified client base covering leading brands across multiple industry verticals.
- Company is focused on the BFSI, automotive, FMCG/consumer durables/retail/ecommerce sectors and possess deep domain expertise across various kinds of client organisation structures, which include private sector business groups, other private companies, multinational companies, public sector enterprises, central government ministries and NGOs.
Established internal infrastructure for efficient delivery of services.
- Company offert the clients with an established infrastructure to support all their marketing and advertising needs.
- Company’s marketing and client services network in India spans across 12 Indian cities, 12 offices and 12 field locations in India, as of September 30, 2023.
- Company has also recently set up foreign subsidiaries in Dubai and Bangladesh to serve clients in Middle East, North Africa and South Asia and have started to offer Full-Service Market Research services.
Expanding company’s presence in domestic and international markets.
- Company is currently present in 12 Indian cities, with 12 offices and 12 field locations, and company further intends to expand the presence in additional geographies.
- Company’s experience in locations like Kochi, Kerala and Hyderabad, Telengana, where we serviced over 10 clients each, showcases the potential of further building a base of clients based in these states.
- Company intends to further this experience by commencing operations in Ahmedabad (Gujarat), Lucknow (Uttar Pradesh) and Jaipur (Rajasthan) to target new and emerging clients from these states.
Financial snapshot of key competitors (FY22)
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 183.2 | 244.9 | 299.9 | 142.5 |
| Net Profit | 3.0 | 19.2 | 31.2 | 7.9 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| R K Swamy Ltd | 5 | 7.03 | 40.96 | 22.20 % | 31.67 |
| Affle (India) Ltd | 2 | 18.43 | 66.74 | 16.73 % | 109.98 |
| Latent View Analytics Ltd | 1 | 7.63 | 63.70 | 12.87 % | 58.93 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 4th March 2024 |
| Issue Closes on | 6th March 2024 |
| Issue Price | Rs.270 -288 |
| Face Value | Rs.5 |
| Retail Category Allocation | 10 % |
| Minimum Lot | 50 Shares |
| Minimum Investment | Rs.14,400 |
| Issue Constitutes | 29.14% |
| Issue Size | Rs.423.56 cr ($ 51 million ) |
| Market Cap | Rs.1454 cr ($ 175 million ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 60,06,945 (Rs.173 cr) |
| Equity Shares Offered (OFS) | 87,00,000 (Rs.250.6 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 1,47,06,945 (Rs.423.56 cr) |
| Equity Shares Prior to the Issue | 4,44,57,140 |
| Equity Shares after the Issue | 5,04,64,085 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 7th March 2024 |
| Initiation of Refunds | on or Before 11th March 2024 |
| Credit of Equity Shares: | on or Before 11th March 2024 |
| Listing Date: | on or Before 12th March 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 7.03 | 40.96 | 22.20% | 31.67 |
| Company Contact Info: |
|---|
| R K Swamy Limited Esplanade House, 29 Hazarimal Somani Marg Fort, Mumbai 400 001 Maharashtra, India Tel: +91 22 2207 7476 E-mail: secretarial@rkswamy.com Website: www.rkswamy.com |
| Registrar to the Issue: |
|---|
| KFin Technologies Limited Selenium, Tower B, Plot No 31 & 32, Financial District Nanakramguda, Serilingampally Hyderabad, Rangareddi 500 032 Telangana, India Tel: +91 40 6716 2222 / 18003094001 E-mail: rkswamy.ipo@kfintech.com Website: www.kfintech.com |
| Check IPO Allotment Status: |
|---|
KfinTech Website (Click on the below Link)http://kfintech/IPO/Allotment_Status |
