R K SWAMY Limited IPO

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The company is distinguished as one of India’s leading integrated marketing services groups, renowned for offering a comprehensive suite of solutions that include creative, media, data analytics, and market research services. As highlighted in a CRISIL report, they are ranked 8th in terms of operating revenue amongst integrated marketing communications services groups within India. Their expansive range of services is categorized into three pivotal business segments:

1. Integrated Marketing Communications

2. Customer Data Analytics and Marketing Technology

3. Full-Service Market Research, encompassing customer experience measurement and syndicated studies.

With a legacy spanning over five decades, they have established a formidable clientele, serving luminaries like Aditya Birla Sun Life AMC, Dr. Reddy’s Laboratories, Havells India, Himalaya Wellness, and many others. Their approach is fundamentally data-driven, utilizing digital innovations across all segments to produce over 818 creative campaigns and manage significant data volumes, along with conducting extensive consumer interviews.

Their dedicated team of over 2,533 employees across 12 offices and various field locations is committed to fulfilling the dynamic marketing service demands of their clients. They deliver a broad spectrum of services, from creative and digital content creation, media planning and buying, event management, to cutting-edge data analytics and market research. This diverse service portfolio is designed to offer their clients memorable brand experiences and insightful consumer data to inform their marketing strategies.

Moreover, their specialized subsidiaries, such as Hansa Customer Equity and Hansa Research, stand as leaders in their respective domains, providing state-of-the-art Customer Data Analytics and Market Research solutions. Founded by the late Mr. R K Swamy and steered by their experienced promoters, Srinivasan K Swamy and Narasimhan Krishnaswamy, their company leverages the esteemed ‘R K Swamy’ and ‘Hansa’ brands to pioneer integrated marketing solutions that lead in innovation and industry effectiveness.

Objects of the R K SWAMY Limited IPO:

The net proceeds of the Fresh Issue, i.e., gross proceeds of the Fresh Issue less the Company's share of the Offer related expenses ("Net Proceeds") are proposed to be utilized in the following manner: i. Funding working capital requirements of our Company; ii. Funding capital expenditure to be incurred by the Company for setting up a digital video content production studio ("DVCP Studio"); iii. Funding investment in IT infrastructure development of the company, and the Material Subsidiaries, Hansa Research and Hansa Customer Equity; iv. Funding setting up of new customer experience centres ("CEC") and computer aided telephonic interview centres ("CATI") of the company; and v. General corporate purposes. Total Number of shares issues :- i. Fresh Issue is 6,006,944 shares, ii. Offer for Sale is 8,700,000 shares.
DRHP of R K SWAMY Limited IPO
RHP of R K SWAMY Limited IPO

R K SWAMY Limited IPO Details:

Open Date: Mar 04 2024
Close Date: Mar 06 2024
Total Shares: 14,706,944
Face Value: ₹ 5 Per Equity Share
Issue Size: 423.56 Cr.
Lot Size: 50 Shares
Issue Price: ₹ 270 - 288 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 11 2024

Promoters And Management:

Srinivasan K Swamy, the company's Chairman and Managing Director since July 1, 1978, boasts over 45 years in advertising and marketing. A graduate in Chemical Engineering from the University of Madras and Management from Jamnalal Bajaj Institute, he's led various advertising and management associations, including the Asian Federation of Advertising Associations. Swamy's notable for his extensive industry contributions, earning him prestigious awards like the IAA North Star Medal. He's also actively involved in social services, emphasizing his multifaceted impact on both the industry and community. Narasimhan Krishnaswamy, the Group CEO and Whole Time Director since October 1, 1985, brings over 37 years of experience to the marketing services and communications sector. A Commerce graduate from the University of Madras, he furthered his education with an MBA from the University of Delhi and an MS in Advertising from Northwestern University, USA. Recognized for his contributions, he was inducted into Northwestern's Medill School of Journalism's Hall of Achievement in 2002. Additionally, for over 20 years, he served as adjunct faculty at Medill, co-developing a course on global marketing communications. Sangeetha Narasimhan is the Whole Time Director of the Company. She has been associated with the Company since March 1, 1986 and accordingly has over 37 years of experience in the advertising and marketing services industry. She has been appointed as the national creative director and is engaged in creating content in all media of the Company since February 2, 2007. She holds a bachelor of science in chemistry from the University of Madras, a master of management studies from the University of Bombay and a senior diploma (vocal) from the Prayag Sangit Samiti, Allahabad.

Financials of R K SWAMY Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 40.80 40.80 44.46
Reserves -4 123 408
Borrowings 457 287 45
Trade Payables 1,991 2,263 1,971
Other Liabilities 1,416 1,350 668
Total Liabilities 3,864 3,901 2,684
Net Block 47 60 81
Investments 10 3 3
Other Assets 809 485 604
Total NC Assets 865 548 688
Receivables 1,770 1,894 2,047
Inventory 27 23 24
Cash & Bank 406 432 137
Other Assets 1,697 1,715 929
Face value 5 5 5
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 1,735 2,344 2,926
Raw Material Cost 442 742 930
Employee Cost 794 900 1,071
Other Expenses 308 364 369
Other Income 97 106 73
Depreciation 150 139 147
EBITDA 288 444 629
EBITDA Margin 16.61% 18.95% 21.50%
Interest 91 58 56
Profit before tax 47 247 426
Tax 16 54 113
Net profit 31 193 313
NPM (%) 1.68% 7.86% 10.42%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 219 364 584
Receivable -674 -133 -160
Payable 628 356 -277
Other WC Items 171 37 219
Working Capital Changes 125 260 -217
Direct Taxes 155 17 -75
Net Cash Inflow from Operating Activity 499 640 292
Cash from Investing Activity
Fixed assets purchased -10 -36 -49
Fixed assets sold 0.03 6 4
Investments purchased 0 0 -0.9
Investment sold 7 5 0.2
Dividends received 0.9 0.9 1
Investment in subsidiaries 0 0 -956
Other investing items -213 -188 862
Net cash inflow from investing activities -216 -212 -138
Cash from Financing Activity
Proceeds from borrowings 11 0 0
Repayment of borrowings -127 -169 -283
Intrest paid fin -63 -36 -27
Dividends paid -5 -16 -20
Other financing items -93 -113 -111
Net Cash Flow 8 93 -289

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
R K Swamy Limited 293 31 6.19 46.5 288 1,453
Affle (India) Limited 1434 245 18.36 57.4 1115 15,634
Latent View Analytics Limited 539 155 7.59 71.0 510 10,496
Vertoz Advertising Limited 83 11 9.22 80.0 810 1,285
* All the data is as per FY23.

Lead Manager of R K SWAMY Limited IPO:

  1. IIFL Securities Ltd
  2. Motilal Oswal Investments Advisors Private Limited
  3. SBI Capital Markets Limited

Registrar of R K SWAMY Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

R K SWAMY Limited No. 19, Wheatcrofts Road, Nungambakkam Chennai-600 034, Phone: +91 22 4057 6499 Email: secretarial@rkswamy.com Website: https://www.rkswamy.com/

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