Promoters buy out US Fund’s 3.56% stake in R K SWAMY

Promoters of R K SWAMY, an integrated marketing services group listed on the main board of BSE & NSE, have consolidated their holding in the company. They have bought 3.56% of shares held by Evanston Pioneer Fund L.P., a US entity that had invested in the Group in 2018-19. 

Srinivasan K Swamy and Narasimhan K Swamy concluded the transaction on December 27, 2024 at the market price of Rs 249.64 per share. With this buy out, the Promoter and Promoter Group hold 69.6% of the equity paid up capital of R K SWAMY.

This development comes as the company navigates a challenging financial period. For the half-year ending September 30, 2024, R K SWAMY reported a total income of Rs. 139.6 crore, slightly down from Rs. 142.6 crore during the same period last year. In the first half of the year, R K SWAMY reported a consolidated profit before tax of Rs. 5.3 crore, a decline from Rs. 10.9 crore recorded during the same period last year. For the quarter ending September, the company's consolidated total income was Rs. 68.1 crore, down from Rs. 80.6 crore in the corresponding quarter of the previous year. Profit before tax for Q2 stood at Rs. 2.2 crore, compared to Rs. 10.2 crore in the same quarter last year.

Despite this decline, the company demonstrated resilience with over 15 new client acquisitions across multiple service areas.