RK Swamy files for IPO, first by an integrated marketing services group

RK Swamy Limited, the largest Indian integrated marketing services provider that offers a single-window solution for creative, media, data analytics, and market research services, has submitted its draught red herring prospectus with market regulator SEBI. The initial public offering of the company, which rose to prominence as an advertising agency, consists of a fresh issue of up to Rs 215 crore and an offer for sale of up to 8,700,000 shares of equity by selling shareholders.

Moneypoise was the first to report RK Swamy's listing intentions on April 6, 2023. The proposed IPO would be a combination of primary and secondary issuance of shares, according to the report, and would facilitate growth capital.

If the company's listing plans are realised, it will be the first IPO by a significant integrated marketing services group in India.

Sam Balsara referred to the late originator RK Swamy as the 'Grand Old Man of Indian Advertising' when he founded RK SWAMY Advertising Associates in Chennai in 1973.

Up to 1,788,093 equity shares may be offered by Srinivasan K Swamy, Up to 1,788,093 equity shares may be offered by Narasimhan Krishnaswamy, Up to 4,445,714 equity shares may be offered by Evanston Pioneer Fund L.P., and Up to 678,100 equity shares may be offered by Prem Marketing Ventures LLP.

The funds raised through the IPO will be used for the funding of working capital, the funding of capital expenditure to be incurred for the establishment of a digital video content production studio, the funding of investment in IT infrastructure development of RK Swamy Limited, and the material subsidiaries, Hansa Research and Hansa Customer Equity, as well as the funding of the establishment of new customer experience centres and computer assisted telephonic interview centres.

RK Swamy's integrated marketing communications business segment encompasses creative and digital content, media (including digital), events and activation planning, purchasing, and execution, as well as public relations, social media management, and pharmaceutical communication, among others.

During the Fiscal Year 2023, RK Swamy Limited released over 818 creative campaigns on behalf of clients across various media outlets, managed over 97.69 terabytes of data, and conducted over 23.7 lakh consumer interviews via quantitative, qualitative, and telephone surveys.

Within the three business segments, over 2,391 employees are dispersed across 12 offices and 12 field locations in twelve cities, servicing the solutions and offerings. Book Running Lead Managers are SBI Capital Markets Limited, IIFL Securities Limited, and Motilal Oswal Investment Advisors Limited.

In July 2022, RK Swamy and BBDO (a leading network of the global Omnicon group) proclaimed the end of their 37-year-long partnership. Under the terms of a new agreement, RK Swamy acquired BBDO's stake in the joint venture, while BBDO acquired RK Swamy's stake in BBDO India.

Srinivasan Swamy, chairman and managing director of RK Swamy Hansa Group, told Storyboard18 in an interview dated July 12, 2022: "The reason we decided to go our separate ways was to integrate our offerings (RK Swamy Hansa Group) as one." Shekar Swamy is the CEO of the group.

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