RK Swamy Ltd IPO to open on March 04

Mumbai, Feb 28: R K Swamy Limited, proposes to open on Monday, March 4, an Initial Public Offering of up to Equity Shares of Face Value of Rs 5 each for cash at a Price Band from Rs 270 to Rs 288 per Equity Share.

Bids can be made for a minimum of 50 Equity Shares and in multiples of 50 Equity 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 Rs 1,730 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 L.P.; 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 Rs. 540.00 million; 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 Limited”) and Hansa Customer Equity Private Limited Rs 333.42 million; and funding setting up of new customer experience centres and computer aided telephonic interview centres of the Company Rs 217.36 million; and general corporate purposes.

The Offer includes a reservation of Equity Shares, aggregating up to Rs 75 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 Rs 27 per equity share on the Offer Price to Eligible Employees bidding in the Employee Reservation Portion.

The Offer is being made through the Book Building Process in accordance with Regulation 6(2) of the SEBI ICDR Regulations wherein not less than 75 per cent of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers), provided that the Company and Selling Shareholders in consultation with the BRLMs may allocate up to 60 per cent of the QIB Portion to Anchor Investors and the basis of such allocation will be on a discretionary basis, in consultation with the BRLMs, in accordance with the SEBI ICDR Regulations (the “Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors (“Anchor Investor Allocation Price”). In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion). Further, 5 per cent of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, up to Equity Shares Rs 75 million will be available for allocation to Eligible Employees, subject to valid Bids being received at or above the Offer Price. Further, not more than 15% of the Net Offer shall be available for allocation to Non-Institutional Investors” of which one-third of the Non-Institutional Category shall be available for allocation to Bidders with an application size of more than Rs 0.20 million and up to ₹ 1.00 million and two-thirds of the Non-Institutional Category shall be available for allocation to Bidders with an application size of more than ₹ 1.00 million and under-subscription in either of these two sub-categories of the Non-Institutional Category may be allocated to Bidders in the other sub-category of the Non-Institutional Category in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. Further, not more than 10 per cent of the Net Offer shall be available for allocation to Retail Individual Investors (“Retail Category”), in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All Bidders (except Anchor Investors) shall mandatorily participate in this Offer only through the Application Supported by Blocked Amount process and shall provide details of their respective bank account (in case of UPI Bidders (defined hereinafter) in which the Bid Amount will be blocked by the Self Certified Syndicate Banks or pursuant to the UPI Mechanism, as the case may be. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price.

SBI Capital Markets Limited, IIFL Securities Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers (BRLMs) to the Offer.

All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.