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RK Swamy shares list on NSE at 13% discount to IPO price
The investors applied for 21.22 crore equity shares, surpassing the IPO size of 82.32 lakh equity shares.
Shares of R K Swamy, an integrated marketing services provider, had a lackluster debut on the stock exchanges on March 12, opening at Rs 250 on NSE (National Stock Exchange), which marked a 13.2% discount from the issue price of Rs 288. The stock debuted at Rs 252 on BSE (Bombay Stock Exchange), experiencing a 12.5% decline from the issue price of Rs 288, as mentioned in The Economic Times report.
This listing performance fell short of analyst expectations, as they had anticipated the shares to debut at Rs 300-310, reflecting a premium of approximately 5%. Prior to the listing, the company's shares did not exhibit any Grey Market Premium (GMP) in the unlisted market.
Despite the weak listing, the initial public offering (IPO) attracted decent investor interest, with a subscription rate of 25.78 times. The subscription data indicates that investors applied for 21.22 crore equity shares, surpassing the IPO size of 82.32 lakh equity shares.
Retail investors subscribed 33.31 times their allotted quotas, while non-institutional investors subscribed 34.24 times their allotted quotas. Qualified institutional buyers also demonstrated strong interest, subscribing 20.58 times the portion reserved for them.
The public offer comprised fresh shares amounting to Rs 173 crore and an offer-for-sale (OFS) of 87 lakh equity shares by promoters and investors, totaling Rs 250 crore. Promoters Srinivasan K Swamy and Narasimhan Krishnaswamy were set to sell 17,88,093 equity shares each in the OFS. Additionally, investors Evanston Pioneer Fund LP planned to offload 44,45,714 equity shares, and Prem Marketing Ventures LLP intended to sell 6,78,100 equity shares through the OFS.
The funds raised through the IPO will be utilised for various purposes, encompassing capital expenditure, addressing working capital requirements, investment in IT infrastructure, and the establishment of new customer experience centers.
Additionally, a portion of the proceeds will be allocated for general corporate purposes, providing flexibility in meeting the company's overall financial needs and strategic initiatives.