RK Swamy’s shares made lacklustre debut on Tuesday, listing at ₹251 on both BSE and NSE. This marks a 13 per cent decline from its issue price of ₹288. After hitting a high of ₹284.50, the stock slid to a low of ₹248 on the BSE.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., said, “The muted listing a cautious investor approach, possibly due to volatile market conditions or concerns about competition and working capital requirements.”

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., stated, “The flat listing is justified due to cyclicality risk and the company being the leading integrated marketing services group in India.”

Earlier, the IPO had received overwhelming response from investors, especially retail. The issue was subscribed 25.78 times.

. The ₹423.56-crore IPO consisted of a fresh issue of ₹173 crore and an offer-for-sale (OFS) of ₹250 crore. Ahead of the IPO, the company raised ₹187 crore from anchor investors.

The money raised from the IPO is expected to be used for funding for setting up a digital video content production studio, financing IT infrastructure development of the company, its subsidiaries and funding the setting up of new customer experience centres, among others.

The Chennai-based company is engaged in the business of integrated marketing communications, customer data analysis and full-service market research.