RK Swamy shares list at 13% discount over issue price

Shares of RK Swamy had a disappointing start on Dalal Street as it listed at a discount on Tuesday, March 12, 2024.

The shares listed at Rs 250, marking a 13.19 per cent discount compared to its issue price of Rs 288 each on the NSE. Similarly, the stock commenced trading on BSE with a 12.50 per cent discount at Rs 252 from the same issue price.

Before its listing, RK Swamy shares didn't command any premium in the grey market. The stock was seen changing hands at a discount of Rs 5-10 per share compared to its issue price. However, during the subscription period, it experienced a notable premium of Rs 40.

RK Swamy had priced its IPO between Rs 270 and Rs 288 per share, with a lot size of 50 equity shares, from March 4 to March 6. The Chennai-based company raised Rs 423.56 crore through its primary offering, comprising a fresh share sale of up to Rs 173 and an offer-for-sale (OFS) of up to 87,00,000 equity shares.

The IPO received an overall subscription of 25.94 times. Non-institutional bidders oversubscribed their quota by 34.36 times, while qualified institutional bidders subscribed 20.58 times. Retail investors showed interest, subscribing 34.03 times, and employees bid 2.52 times during the three-day process.

RK Swamy, established in 1973, has been involved in integrated marketing communications, customer data analysis, full-service market research, and syndicated studies for over five decades. The company is known for its data-driven approach and integrated marketing services, leveraging digital initiatives.

IIFL Securities, SBI Capital Markets, and Motilal Oswal Investment Advisors served as the book running lead managers for the RK Swamy IPO, with Kfin Technologies acting as the registrar for the issue.