RK Swamy shares make a lukewarm debut and trade at a 13% discount | Top Vip News

Shares of RK Swamy made a weak debut on the bourses on March 12, trading at Rs 250, a 13.1 per cent discount to the issue price of Rs 288. The quote lagged estimates by analysts who predicted the stock would trade at Rs 300-310. a premium of about 5 percent.

The issue aroused considerable interest from investors, with a subscription of 25.78 times. Subscription data reveals that participants applied for 21.22 lakh equity shares against the IPO size of 82.32 lakh equity shares.

Retail investors and non-institutional investors (high net worth individuals) played an important role, subscribing 33.31 times and 34.24 times their allocated quotas, respectively. Qualified institutional buyers showed great interest, subscribing 20.58 times the portion reserved for them.

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The public offer is a combination of fresh shares worth Rs 173 crore and an offer for sale (OFS) of 87 lakh shares from promoters and investors worth Rs 250 crore. Promoters Srinivasan K Swamy and Narasimhan Krishnaswamy will sell 17,88,093 shares each in the OFS, while investors Evanston Pioneer Fund LP will sell 44,45,714 shares and Prem Marketing Ventures LLP 6,78,100 shares through the OFS.

The funds raised through the issuance will be used for various purposes such as financing capital expenditure, addressing working capital needs, investing in IT infrastructure and establishing new customer experience centers. Additionally, a portion of the proceeds will go toward general corporate purposes.

Founded in 1973, RK Swamy specializes in integrated marketing communications, customer data analytics, full-service market research and syndicated studies.

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