RK Swamy gets SEBI approval to raise funds through IPO

livemint.com:

₹ 2,150 million and an offer for sale of up to 8,700,000 equity shares by selling shareholders. Also read: Jyoti CNC Automation IPO: 10 key risks investors should know before subscribing to the issue The offer for sale comprises 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 company plans to utilise the net proceeds for the funding of working capital, the funding of capital expenditure to be incurred for setting up a digital video content production studio, the funding of investment in IT infrastructure development of the company, and the material subsidiaries, Hansa Research and Hansa Customer Equity, the funding of the setup of a new customer experience centres and computer aided telephonic interview centres as well as for general corporate purposes.

Also read: IBL Finance IPO: Check GMP, subscription status on day 1, review, other key details SBI Capital Markets Limited, IIFL Securities Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers to the issue. The markets regulator issued an observation letter to RK Swamy's IPO documents, which were submitted on August 11, 2023, and this was confirmed on January 5, 2024.

In SEBI's terminology, the issuance of an observation letter signifies that the company is eligible to launch its public offering within one year from the date of receiving the observation letter. Founded by the late RK Swamy, recognized as the 'Grand Old Man of Indian Advertising' by Sam Balsara, RK Swamy initiated RK SWAMY Advertising Associates in Chennai in 1973.