The Chennai-based RK Swamy will launch its initial public offering on March 4, according to red herring prospectus filed with SEBI. The company is expected announce the price band this week.
The offer includes a fresh issue of ₹173 crore and an offer for sale of up to 87 lakh equity shares by selling shareholders — Srinivasan K Swamy (17.88 lakh shares), Narasimhan Krishnaswamy (17.88 lakh shares), Evanston Pioneer Fund LP (44.46 lakh shares) and Prem Marketing Ventures LLP (6.78 lakh shares). The company reduced the fresh issue size from ₹215 crore proposed earlier.
The company plans to use ₹54 crore of for working capital requirements; ₹10.985 crore for setting up a DVCP studio; ₹33.34 crore for investment in IT infrastructure development for the company and its subsidiaries; and ₹21.74 crore for setting up of new CEC and CATI of the company.
The book running lead managers for the issue include SBI Capital Markets, IIFL Securities and Motilal Oswal Investment Advisors. The issue will close on March 6.