R K Swamy

Name: R K Swamy IPO
Start: 2024-03-04
End: 2024-03-06
Location: R K Swamy

Book Building issueMainboard₹424 Cr issue

-12.50%

Listing gain over issue price

Issue size

₹424 Cr

1 lot at cut-off

₹14,400

Lot size

50shares

Open

04 Mar 2024

06 Mar 2024

Allotment

07 Mar 2024

Listing

12 Mar 2024

Listing performance

Issue price

₹288

Listed at

₹252

Listing-day close

₹263.25

Latest price

₹75.96

Close on 23 Oct 2026

Listing gain

-12.50%

Return since issue

-73.63%

Scheduled dates

Tentative timetable — a past date is not confirmation the step completed

Open

04 Mar 2024
Close

06 Mar 2024
Allotment

07 Mar 2024
Refund

11 Mar 2024
Demat credit

11 Mar 2024
Listing

12 Mar 2024

Issue details

IPO date: 04 Mar 2024 – 06 Mar 2024
Listing date: 12 Mar 2024
Face value: ₹5 per share
Issue price: ₹288 per share
Lot size: 50 shares
Issue type: Book Building issue
Total issue size: ₹424 Cr
Market cap at offer price: ₹1,453 Cr
Promoter holding: 83.03% → 66.03% pre-issue → post-issue
ISIN: INE0NQ801033
Registrar: Kfin Technologies Ltd.
Lead managers: SBI Capital Markets Ltd.
Registered office: No.19, Wheatcrofts Road, Nungambakkam, Tamil Nadu

Reservation and application size

How the issue is split between investor categories, and what each may bid

Investor category	Shares	% of net	% of total
Anchor investor · within QIB	65,00,937	—	—
Market maker	0	—	—

Application size

Minimum 50 shares per lot, in multiples, at ₹288

Application	Lots	Shares	Amount
Retail (min)	1	50	₹14,400
Retail (max)	13	650	₹1,87,200
S-HNI (min)	14	700	₹2,01,600
S-HNI (max)	69	3,450	₹9,93,600
B-HNI (min)	70	3,500	₹10,08,000

Category limits

Category	Bid size	Cut-off
Retail (RII)	Up to ₹2 lakh	Yes
Small HNI (sNII)	₹2 lakh – ₹10 lakh	No
Big HNI (bNII)	Above ₹10 lakh	No
Employee	Up to ₹5 lakh	Yes

Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.

Anchor investors

Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.

Shares allocated

65,00,937

Anchor portion

₹187 Cr

at ₹288 per share

Valuation and performance

Valuation at offer price

₹288 per share

Metric	Pre-issue	Post-issue
EPS (₹)	7.03	3.14
P/E (×)	40.97	91.72
Price to book (×)	8.73	—
Market cap	—	₹1,453 Cr

Key performance indicators

Latest reported period

Return on net worth: 5.41%
ROCE: 6.29%
Debt / equity: 1.50
PAT margin: 5.56%
NAV per share: ₹32.99
Price to book: 8.73

Single period as reported. Year-on-year movement is in the financials table below, where every period is published.

About R K Swamy

R K Swamy Limited (incorporated in 1973, formerly R. K. Swamy Advertising Associates Private Limited) is an integrated marketing service group providing comprehensive single-window solutions for creative, media, data analytics, and market research services. The company operates through three complementary business segments: Integrated Marketing Communications, Customer Data Analytics and MarTech (via Hansa Customer Equity), and Full-Service Market Research (via Hansa Research). Ranked 8th among integrated marketing communications services groups in India, the company serves over 380 clients as of September 2023 with long-standing relationships averaging approximately 19 years with top 10 clients. The company operates with an asset-light business model leveraging third-party service providers and digital platforms for advertising delivery.

https://www.rkswamy.com/ ↗

Company Analysis

from RHP

R K Swamy Limited is one of India's leading integrated marketing services groups offering creative, media, data analytics, and market research services across advertising, data analytics, and market research sectors.

Integrated Marketing CommunicationsCustomer Data Analytics and MarTechFull-Service Market ResearchAdvertisingDigital MarketingMarket Research

Objects of the Issue

Funding working capital requirements of our Company
₹ 540.00 million p.23
Funding capital expenditure to be incurred by the Company for setting up a digital video content production studio (DVCP Studio)
₹ 109.85 million p.23
Funding investment in IT infrastructure development of our Company, and our Material Subsidiaries, Hansa Research and Hansa Customer Equity
₹ 333.42 million p.23
Funding setting up of new customer experience centres (CEC) and computer aided telephonic interview centres (CATI)
₹ 217.36 million p.23
General corporate purposes
p.23
Funding working capital requirements of our Company
p.47
Establishing a Digital Video Content Production (DVCP) Studio
p.47
Investing in IT infrastructure for the Company and its Material Subsidiaries, Hansa Research and Hansa Customer Equity
p.47
Setting up new Customer Experience Centres (CEC) and Computer Aided Telephonic Interview (CATI) facilities
p.47
General corporate purposes
p.47
Funding working capital requirements of our Company
₹540.00 million p.102
Funding capital expenditure to be incurred by the Company for setting up a digital video content production studio (DVCP Studio)
₹109.85 million p.102
Funding investment in IT infrastructure development of our Company, and our Material Subsidiaries, Hansa Research and Hansa Customer Equity
₹333.42 million p.102
Funding setting up of new customer experience centres (CEC) and computer aided telephonic interview centres (CATI) of our Company
₹217.36 million p.102
General corporate purposes
[●] p.102
Funding capex for creation of a fully equipped production studio with post-production facilities to enable high quality production with quick turnaround time
p.381
General corporate purposes including investments in new initiatives such as auto marketing platform, data mart, R K Swamy Center for Indian Markets
p.382

Issue Structure

Total Issue: Up to [•] Equity Shares aggregating up to ₹ [•] million
Fresh Issue: Up to [•] Equity Shares aggregating up to ₹ 1,730 million
Offer for Sale: Up to 8,700,000 Equity Shares aggregating up to ₹ [•] million
Price Band: Floor Price of ₹ [•] per Equity Share to Cap Price of ₹ [•] per Equity Share (Cap Price at least 105% of Floor Price and not more than 120% of Floor Price)
Lot Size: [•] Equity Shares minimum bid lot with multiples of [•] thereafter
Face Value: ₹ 5 each

Business Model

The company earns revenue through providing integrated marketing communications services, customer data analytics and marketing technology solutions, and full-service market research services. Revenue composition for six months ended September 30, 2023 included 44.00% from Integrated Marketing Communications, 30.63% from Customer Data Analytics and MarTech, with the remainder from market research and other services. Digital operations contributed 80.22% of total revenue. The company operates on a principal-to-principal basis with media houses and digital platforms, with clients typically paying post-service receipt based on credit cycles.

Business Segments

Provides creative and media services for advertising campaigns

Provides customer data analytics, marketing technology solutions and related services through Hansa Customer Equity

Provides comprehensive market research services through Hansa Research

Provides advertising and marketing communications services to clients

Provides customer data analytics and marketing technology solutions through subsidiaries Hansa Customer Equity and Hansa Research Group

Provides comprehensive market research services to clients across industries

Provides creative services, media planning and buying, digital video content production, and campaign management across print, electronic, digital, and outdoor advertising channels. Produces short videos, product videos, animations, and longer-duration productions for digital platform distribution.

Offers data-driven solutions leveraging behavioral science and advanced machine learning proprietary tools to boost extensive analytics and research capabilities. Provides one-to-one customer intelligence campaigns, voice call services, online reputation management, and digital query handling.

Collects and processes primary data on a large scale using IT infrastructure. Provides depth interviews, group discussions, quantitative interviews, computer-aided telephonic interviews (CATI), and maintains research panels.

Operates call centers and customer experience centers with over 1,700 seats across 10 locations equipped with state-of-the-art equipment and multilingual capabilities to handle inbound and outbound customer interactions on behalf of clients.

Offers integrated marketing communication services through R K Swamy and Hansa brands, including advertising, digital content, media planning and buying, events and activation, pharma communication, continuing medical education, social and rural communication, and brand and marketing consulting

Offers data-based solutions through Hansa brand (via Hansa Customer Equity subsidiary) that provide consumer and marketing insights for designing targeted campaigns and omni-channel marketing, including data architecture consulting, data science and AI, data analytics, MarTech and campaign implementation, website and social media management, and customer experience management

Provides organized feedback through systematic and scientific process regarding consumer and stakeholder preferences through quantitative and qualitative studies, customer experience measurement, marketing and business strategy, syndicated studies, India Data Facts, and B2B research

Commission revenue from advertisements placed with media on behalf of clients (net of trade discount) recognized on telecast or publishing of advertisements

Revenue from creative jobs and other media related services recognized at point in time or over time based on contract terms

Revenue from market research activities and research and analytics solutions recognized over time based on contracts

Revenue from data analytics services, call seat services, and customer experience management solutions recognized over time

Includes creative and digital content creation, media planning and buying including digital media, events and activation planning and execution, and other services including public relations and social media management

Includes customer data analytics, delivery and management of customer experience, online reputation management, campaign management and tracking, customer relationship management tools, customer insights and dashboards, sentiment analysis, and loyalty program management

Includes customer/audience segmentation, consumer surveys, customer experience measurement, brand equity and customer satisfaction indices, and consumer intelligence

Production of creative and digital content, distribution of content across media platforms and events and activation

Data-based solutions targeted at transforming the effectiveness and efficiency of marketing and advertising at strategic and operational levels

Delivery of organized feedback regarding consumer and stakeholder preferences to provide clarity with actionable and objective insights to clients

SWOT Analysis

Strengths

• Established market position as one of India's leading integrated marketing service groups(p.22)
• Ranked 8th among integrated marketing communications services groups in India(p.22)
• Comprehensive service portfolio across three complementary business segments(p.22)
• Strong long-standing client relationships averaging 19 years with top 10 clients(p.36)
• High repeat client base with 93.72% revenue from repeat clients(p.36)
• Significant revenue contributions from established subsidiaries in niche services(p.44)
• Improving operational profitability and returns metrics(p.56)
• Diversified service portfolio across three integrated business segments(p.54)
• Strong brand legacy and market recognition built over decades(p.47)
• 50-year track record in integrated marketing services(p.125)
• 15-year track record in data analytics and digital content production at scale(p.125)
• Established brands and experienced leadership across segments(p.125)
• Diversified, long-standing customer base(p.125)
• Strong internal infrastructure for service delivery(p.125)
• One of India's leading integrated marketing services groups with 50+ years of track record(p.196)
• Ranked 8th among integrated marketing communications groups by estimated operating revenue(p.196)
• 15-year track record in Customer Data Analytics and MarTech with 200+ clients served since 2008(p.206)
• Top 5 position in Full-Service Market Research segment(p.194)
• Highly diversified client base with 93.72% repeat customer revenue contribution(p.201)
• Experienced promoters with 45+ and 37+ years in advertising and marketing services(p.196)
• Strong digital capabilities with 80.22% of revenue from digital operations(p.207)
• Three diversified business segments with complementary service offerings(p.213)
• Strong client portfolio including leading national corporations(p.213)
• Proprietary tools and methodologies for media optimization and analytics(p.214)
• Established market research credentials including foundational industry publications(p.213)
• Advanced AI and machine learning capabilities in data science(p.216)
• Established integrated marketing services business with diversified service offerings(p.285)
• Recent acquisitions expanding capability in research and customer analytics(p.285)
• Demerger of marketing communications division strengthens core business focus(p.285)

Weaknesses

• High concentration of revenue from top 10 clients representing 49.65% of revenue(p.36)
• Significant exposure to three key industry verticals (BFSI, Automotive, FMCG/Retail) representing 59.78% of revenue(p.36)
• Substantial dependence on digital marketing and IMC generating 80.22% of revenue(p.38)
• High working capital requirements with trade receivables holding period of 71 days(p.40)
• Elevated trade payables and limited access to term loans due to asset-light model(p.40)
• High dependency on revenue from few key subsidiaries(p.44)
• Significant reliance on human capital with high attrition rates in certain segments(p.45)
• Substantial operating cash flow decline in recent periods(p.56)
• Unable to trace certain historical corporate records and RoC filings(p.52)
• Reliance on leased premises with expiring lease agreements(p.59)
• High dependence on top customers for revenue(p.128)
• Significant trade receivables concentration and collection delays from public sector(p.105)
• Limited access to long-term debt financing due to lack of fixed assets(p.106)
• Working capital cycle mismatch: trade payables declining while receivables remain high(p.107)
• High concentration risk from top 10 clients representing 49.65% of revenue(p.203)
• Relatively small market share of 1.0% in the overall marketing services segment(p.194)
• PAT margin declined to 5.56% in H1 FY24 from 10.42% in FY23(p.203)
• Dependence on external production houses and outsourced resources(p.211)
• Limited presence with only 12 offices across 12 Indian cities(p.196)
• High attrition among contractual Customer Experience Centre and CATI staff(p.218)
• Dependence on trademark license from related party(p.222)
• Pending trademark registrations create IP protection gaps(p.223)
• Leased premises create operational flexibility constraints(p.224)
• Significant trade receivables concentration with few major customers(p.322)
• Substantial portion of receivables aging beyond normal terms(p.323)
• High allowance for expected credit losses on receivables(p.320)
• Promoters have disassociated from multiple companies in recent years(p.268)

Opportunities

• Projected industry growth to reach ₹3,500-3,750 billion by FY2028 driven by digital and MarTech(p.22)
• Strong historical industry growth at 5.6% CAGR from FY2019 to FY2023(p.22)
• Diversification into new product verticals and service offerings(p.42)
• Expansion of Customer Data Analytics and MarTech services (30.63% of revenue)(p.39)
• Expansion into international markets with strategic new offices(p.47)
• Growing advertising and marketing services market with strong projected CAGR(p.55)
• Opportunity to enhance service integration across business verticals(p.51)
• Strategic investments in digital infrastructure and new facilities(p.47)
• Invest in digital content production studio to enhance in-house capabilities(p.109)
• Upgrade IT infrastructure to build data products and support growth(p.112)
• Expand customer experience and CATI centres to meet growing demand(p.118)
• Strong growth in digital advertising and e-commerce driving marketing services demand(p.150)
• Increasing corporate marketing spend as revenue grows(p.150)
• Marketing services market expected to grow at 12.5-14.5% CAGR till FY28(p.204)
• Digital advertising projected to capture over 50% of ad spends by FY28 vs 33% in FY23(p.204)
• Customer Data Analytics & MarTech market expected to grow 13-15% CAGR to ₹200-230 billion by FY28(p.205)
• Market Research segment projected to grow 9-10% CAGR to ₹140-150 billion by FY28(p.205)
• Expansion into three new geographic markets: Ahmedabad, Lucknow and Jaipur(p.210)
• International expansion in high-growth markets like Dubai, Bangladesh and Singapore(p.211)
• New business initiatives including Auto Marketing Platform, Brand Consulting Group and DVCP Studio(p.212)
• Expansion of data analytics and MarTech services to drive higher-margin growth(p.215)
• Growing demand for omnichannel customer experience management(p.217)
• Expansion of international operations through subsidiary presence(p.224)
• Growing digital transformation needs in pharmaceutical and healthcare communication(p.214)
• Expansion of integrated marketing services across geographies(p.271)
• Growth potential in North American marketing consultancy market(p.272)
• Monetization of multilingual content capabilities(p.272)

Threats

• Risk of client loss or reduction in advertising budgets during economic downturns(p.37)
• Rapid technological changes requiring continuous investment in capabilities(p.39)
• Client payment delays, particularly from public sector clients with 45-day holding periods(p.40)
• Industry-mandated payment obligations requiring settlement within 60 days creating cash flow pressure(p.40)
• Increasing competition from agencies offering services at lower costs or with advanced technologies(p.37)
• Trend of companies internalizing advertising, data analytics and market research functions in-house(p.40)
• Dependence on media availability and exposure to production cost volatility(p.41)
• Regulatory and compliance risks with industry associations like INS, IBDF, and AAAI(p.43)
• Intense competition from established and emerging market players(p.54)
• Low barriers to entry attracting new boutique competitors(p.57)
• Evolving data privacy and security regulatory requirements globally(p.44)
• Rapid changes in media landscape impacting traditional media revenues(p.52)
• Dependence on third-party data sources and customer consent(p.48)
• Economic cyclicality and consumer discretionary spending sensitivity(p.67)
• Pharma sector revenue exposure to stricter regulatory norms(p.65)
• Regulatory changes reducing payment periods for digital vendors compress working capital(p.106)
• Dependence on media house associations' payment terms and potential disaccreditation risk(p.106)
• Global economic slowdown and geopolitical tensions impact corporate spending(p.144)
• Delays in client payments impact cash flow, particularly from public sector entities(p.105)
• Intense competition in fragmented marketing services industry(p.157)
• Rising use of ad-blocking software reducing advertising reach(p.170)
• Stringent data privacy regulations limiting targeting capabilities(p.170)
• Rapidly evolving technology requiring continuous investment and adaptation(p.158)
• Decreasing consumer attention span due to content proliferation(p.158)
• Shortage of skilled professionals in digital marketing and data analytics(p.170)
• Unpredictable market conditions affecting client marketing budgets(p.159)
• Intense competition from multinational advertising and marketing services companies(p.224)
• Stringent pharmaceutical advertising regulations limit market potential(p.214)
• Risk of IP infringement and loss of brand protection(p.223)
• Evolving data protection regulations create compliance obligations(p.227)
• Restrictive covenants in financing arrangements may limit dividend distribution capability(p.273)
• Dependence on sustained earnings and cash flows for future dividend payments(p.273)
• Working capital fluctuations affecting operating cash flows(p.283)

Promoters

Name	Role	Pre-Issue	Post-Issue
Srinivasan K Swamy (Sundar Swamy)	Promoter	38.80%	—
Narasimhan Krishnaswamy (Shekar Swamy)	Promoter	39.93%	—
Srinivasan K Swamy	Promoter	38.80%	—
Narasimhan Krishnaswamy	Promoter	39.93%	—
Evanston Pioneer Fund L.P.	Promoter Group	14.04%	—
Prem Marketing Ventures LLP	Promoter Group	1.52%	—
Srinivasan K Swamy	Promoter	38.80%	[•]
Narasimhan Krishnaswamy	Promoter	39.93%	[•]
Vathsala Ravindran	Promoter Group	0.77%	[•]
Vimala Ramanan	Promoter Group	0.77%	[•]
Kala Santhanaraman	Promoter Group	0.77%	[•]
Bhooma Parthasarathy	Promoter Group	0.77%	[•]
Sangeetha Narasimhan	Promoter Group	0.10%	[•]
Siddharth Swamy	Promoter Group	0.56%	[•]
Sruti Swamy	Promoter Group	0.56%	[•]
Srinivasan K Swamy	Promoter	38.80%	—
Narasimhan Krishnaswamy	Promoter	39.93%	—
Srinivasan K Swamy	Promoter	41.80%	—
Narasimhan Krishnaswamy	Promoter	41.80%	—
Srinivasan K Swamy (Sundar Swamy)	Promoter	—	—
Narasimhan Krishnaswamy (Shekar Swamy)	Promoter	—	—
Srinivasan K Swamy	Chairman, Managing Director and Promoter	41.80%	38.80%
Narasimhan Krishnaswamy	Group CEO, Whole Time Director and Promoter	41.80%	39.93%
Evanston Pioneer Fund L.P.	Promoter Group	—	—
Prem Marketing Ventures LLP	Promoter Group	—	—
Srinivasan K Swamy	Selling Shareholder	—	—
Narasimhan Krishnaswamy	Selling Shareholder	—	—
Evanston Pioneer Fund L.P.	Selling Shareholder	—	—
Prem Marketing Ventures LLP	Selling Shareholder	—	—

Leadership

Srinivasan K Swamy (Sundar Swamy) · Chairman and Managing Director

Narasimhan Krishnaswamy (Shekar Swamy) · Group CEO and Whole Time Director

Rajeev Newar · Chief Financial Officer

Rajagopalan Desikan · Company Secretary

Aparna Bhat · Compliance Officer

Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.

Offer documents

R K Swamy IPO FAQs

What is the lot size of R K Swamy IPO?

The minimum lot size of R K Swamy IPO is 50 shares. One lot costs ₹14,400 at the cut-off price.

When does R K Swamy IPO open and close?

R K Swamy IPO opened for subscription on 04 Mar 2024 and closed on 06 Mar 2024.

What is the listing date of R K Swamy IPO?

R K Swamy IPO listed on 12 Mar 2024.