RK Swamy to mop up Rs 423 cr via IPO
The issue, which will open on March 4, comprises equity shares of face value of Rs5 each for cash at a price band of Rs270-288/share
image for illustrative purpose
Bids can be made for a minimum of 50 equity shares and in multiples of 50 shares thereafter. The anchor investor bidding date shall be Friday (March 1). The Bid/Offer will open Monday (March 4) for subscription and close on Wednesday (March 6)
Mumbai: RK Swamy, which is coming out with its IPO on March 4, is looking at mopping up a sum of Rs423 crore in the higher band and in case of lower band it may be six per cent lower.
Talking to Bizz Buzz, Shekar Swamy, Group CEO, RK Swamy, says: “We are looking at mopping up Rs423 crore in the higher band through the IPO. Whereas in case of lower band, it may be six per cent lower.”
Speaking on the proceeds, he said that we are looking at 2-3 buckets, including the major focus on infra development. While the company wants to double its headcount at the Customer Experience Centre from 1,700 at present within a period of 2-3 years.
Also, it is planning to go for IT refresh, which means equipment and software upgrade. Thirdly, it wants to go for digital video production.
“We are setting up a post-production studio in Mumbai,” Swamy said.
The issue will be of up to equity shares of face value of Rs5 each for cash at a price band from Rs270 to Rs288 per equity share.
Bids can be made for a minimum of 50 equity shares and in multiples of 50 shares thereafter. The Anchor investor bidding date shall be Friday (March 1). The Bid/Offer will open Monday (March 4) for subscription and close on Wednesday (March 6).
The offer comprises a fresh issue of equity shares aggregating up to Rs1,730 million and an offer for sale of up to 8,700,000 equity shares the Offer For Sale and together with the Fresh Issue, the Offer: comprising up to 1,788,093 equity shares by Srinivasan K Swamy; up to 1,788,093 equity shares by Narasimhan Krishnaswamy; up to 4,445,714 equity shares by Evanston Pioneer Fund; and up to 678,100 equity shares by Prem Marketing Ventures LLP.
The net proceeds from the fresh issue are proposed to be used as follows: Funding working capital requirements of the company Rs540million; Funding capital expenditure to be incurred by the company for setting up a digital video content production studio109.85 million; Funding investment in IT infrastructure development of the company, and material subsidiaries, Hansa Research Group Private Ltd and Hansa Customer Equity Private Ltd Rs333.42 mn; and funding setting up of new customer experience centres and computer aided telephonic interview centres of the company Rs217.36 mn; and general corporate purposes.
The offer includes a reservation of equity shares, aggregating up to Rs75 million for subscription by eligible employees. The offer less the employee reservation portion is hereinafter referred to as the ‘Net Offer’.
The company has in consultation with the book running lead managers offered a discount Rs27 per equity share on the offer price to eligible employees bidding in the employee reservation portion.
