R.K. Swamy Limited IPO Analysis,GMP,PRICE ,ALLOTMENT DATE ,IPO REVIEW
R.K. Swamy Limited IPO Analysis:
I. Issue Details:
- IPO Open Date: March 4, 2024
- IPO Close Date: March 6, 2024
- Allotment Date: March 7, 2024
- Listing Date: March 12, 2024 (tentative)
- Lot Size: 50 Shares
- Price Band: ₹ 270 - ₹ 288 per Share
- Face Value: ₹ 5 per Share
II. Company Profile:
R.K. Swamy Limited is a full-service marketing communications company with over 70 years of experience. They offer integrated marketing solutions, including advertising, brand strategy, public relations, and digital marketing.
III. Company Fundamentals:
- Revenue Growth: 13.91% (FY23 compared to FY22)
- Profitability: Net Profit Margin - 7.85% (FY23)
- EPS (Earnings Per Share): ₹ 7.22 (FY23)
- Debt-to-Equity Ratio: 0.65 (FY23)
- Gross Profit Margin: 38.40% (FY23)
IV. Objective of the Issue:
- The company aims to raise funds for:
- Funding capital expenditure for setting up a digital video content production studio.
- Investment in IT infrastructure development.
- Setting up new customer experience centers and computer-aided telephonic interview centers.
- General corporate purposes.
V. Promoters:
- The company is promoted by the R.K. Swamy family, with Ms. R.K. Ranganathan as the Chairperson and Managing Director. The promoters have extensive experience in the advertising and marketing industry.
VI. Allotment Structure:
- The issue is divided between Retail Individual Investors (50%), Qualified Institutional Buyers (QIBs) (35%), and Non-Institutional Investors (15%).
VII. Peer Group Comparison:
R.K. Swamy competes with other integrated marketing and advertising agencies in India. A comparison of key financial metrics with its peers can be found in the DRHP (Draft Red Herring Prospectus).
VIII. Company Financials (Last 3 Years):
- Sales (Cr):
- FY23: ₹ 384.76
- FY22: ₹ 338.40
- FY21: ₹ 300.21
- Revenue Growth:
- FY23: 13.91%
- FY22: 12.72%
- FY21: N/A
- Profit After Tax (Cr):
- FY23: ₹ 30.25
- FY22: ₹ 27.00
- FY21: ₹ 22.54
IX. Risks & Challenges:
- Dependence on the performance of the advertising and marketing industry.
- Competition from established players and new entrants.
- Reliance on key client relationships.
- Talent acquisition and retention challenges.
X. Should You Apply for the IPO?
R.K. Swamy Limited demonstrates steady revenue growth and profitability. However, the P/E ratio based on the upper price band is 39.87x, which appears relatively high compared to some industry peers. Additionally, a portion of the funds raised will be used for general corporate purposes, which may raise concerns about the specific use of the capital.
Considering the information above, the decision to invest in the IPO is up to your individual risk tolerance and investment goals. It's crucial to conduct your own research and consult with a financial advisor before making any investment decisions.
XI. How to Apply for the IPO through Angel Broking:
These steps are generally applicable for IPO applications through AngelONE, but the specific process might vary:
- Ensure you have an active Demat and Trading Account with AngelONE.
- Access the IPO section on the Angel Broking platform and locate R.K. Swamy Limited IPO.
- Review the IPO details and eligibility criteria.
- Enter the desired number of shares and place your bid within the price band.
- Carefully review and confirm your application details before submitting.
XII. Why Apply for the IPO? (Optional):
- Established player in the Indian advertising and marketing industry.
- Diversified service portfolio.
- Experienced management team.
Disclaimer: This analysis is for informational purposes only and should not be construed as financial advice
