Unlisted shares of R K Swamy are currently trading with zero premium in the grey market, thus indicating no gains on the listing day
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R K Swamy Listing Tomorrow: The R K Swamy IPO, whose share allotment was finalised on March 7, is going to be listed on both BSE and NSE on March 12, Tuesday. The Rs 423.56-crore IPO was opened for public subscription between March 4 and March 6. Ahead of the listing, the grey market is currently indicating a flat return for the IPO.
Investors can check their IPO allotment status by visiting the registrar’s portal, Kfin Technologies Ltd.
R K Swamy IPO GMP Today
According to market observers, unlisted shares of R K Swamy are currently trading with zero premium in the grey market as compared with its issue price. The zero grey market premium or GMP means the grey market is expecting no gains on the listing day. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Prashanth Tapse, senior vice-president (research) of Mehta Equities, said, “Considering optimistic market mood along with decent subscription demand from all sets of investors on the last of the ipo process we expect a flat listing to its issue price of Rs 288 apiece. R K Swamy received decent subscription demand despite knowing the seasonality and volatility in the business model.”
He added that the flat listing is justified due to cyclicality risk and the company being the leading integrated marketing services group in India, offering a single-window solution for creative, media, data analytics and market research services for over five decades in the industry.
“We believe RK Swamy would get more traction post-listing as it would be the first of its kind and a pure play for one-stop marketing solutions company getting listed with no apple-to-apple listed peers to compare.
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Primarily the company is serving the sector which is volatile by nature but the growth has been good in recent years hence the call for allotted investors is HOLD for long term while those investors who wish to add on listing date can wait and watch the space post listing performance before taking any action,” Tapse said.
The initial public offer of integrated marketing services firm R K Swamy received subscribed 25.78 times on the last day of subscription on March 6. The Rs 423.56 crore-IPO received bids for 21,22,37,750 shares against 82,32,946 shares on offer.
The portion for non-institutional investors received 34.24 times subscription while the category for Retail Individual Investors (RIIs) got subscribed 33.31 times. The Qualified Institutional Buyers (QIBs) part got 20.58 times subscription. The Initial Public Offer (IPO) had a fresh issue of up to Rs 173 crore and an offer for sale component of up to 87,00,000 equity shares.
The company’s IPO had a price range of Rs 270-288 a share. RK Swamy Ltd on Friday said it has collected Rs 187 crore from anchor investors.
Funds raised through the fresh issue would be used for setting up a digital video content production studio, establishing new customer experience centres and computer-aided telephonic interview centres as well as for general corporate purposes. Also, funds would be utilised for investment in the IT infrastructure development of RK Swamy Ltd and its subsidiaries Hansa Research and Hansa Customer Equity.
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RK Swamy Ltd is the largest Indian majority-owned integrated marketing services provider in India, offering a single-window solution for creative, media, data analytics, and market research services. SBI Capital Markets, IIFL Securities and Motilal Oswal Investment Advisors were the managers to the the offer.
