RK Swamy listing: Shares debut at 12.5% discount to IPO price

Integrated market communication services provider RK Swamy made a weak debut in the secondary market on Tuesday, March 12. The stock began trading on BSE at Rs 252 per share, a discount of 12.5 per cent to the upper end of the issue price range. On NSE, the stock opened at Rs 250, a discount of 13.2 per cent. 

The company's IPO, worth an estimated Rs 424 crore, concluded last week with an overall subscription of 25.9 times the equity on offer. The IPO was a combination of fresh issuance of shares, and an offer for sale (OFS) by promoters and existing shareholders. While the portion reserved for non-institutional investors saw a subscription of 34.4 times, the portions meant for qualified institutional buyers (QIBs) and retail investors were subscribed 20.6 and for 34 times, respectively, according to exchange data. 

The promoters' shareholding in the company reduced to 55.91 per cent post-issue. 

What market wizard Anil Singhvi suggests

Earlier, Zee Business Managing Editor Anil Singhvi, who recommended subscribing to the IPO, said investors may consider the company from a perspective of at least two years, describing RK Swamy as an interesting company and a one-of-a-kind stock. 

RK Swamy financials

The company registered a net profit of Rs 7.93 crore for the first half of the current financial year, with a margin of 14.7 per cent, according to equity research portal Trendlyne.

About RK Swamy

Incorporated on February 16, 1973, RK Swamy is the largest Indian majority-owned integrated marketing services provider offering a single-window solution for creative, media, data analytics, and market research services.

The company provides a comprehensive range of services, including integrated marketing communications, customer data analytics and marketing technology, and full-service market research and syndicated studies.

Post-listing view

"The muted pre-listing GMP and negative listing indicate a cautious investor approach, possibly due to volatile market conditions or concerns about competition and working capital requirements. This negative listing presents a challenge. Investors are advised to evaluate their risk tolerance before making any decisions," said Shivani Nyati, Head of Wealth at Swastika Investmart .

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