RK Swamy makes a lackluster debut on exchanges. What should investors do?

Analysts said the muted pre-listing GMP and negative listing indicate a cautious investor approach, possibly due to volatile market conditions or concerns about competition and working capital requirements.

"This negative listing presents a challenge. Investors are advised to evaluate their risk tolerance before making any decisions," said Shivani Nyati, head of wealth at Swastika Investmart.

Funds raised through the IPO are proposed to be utilised for working capital, to meet capital expenditure to be incurred for setting up a digital video content production studio, for investment in IT infrastructure development, for setting up new customer experience centres and computer-aided telephonic interview centres as well as for general corporate purposes.

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RK Swamy is one of India’s largest integrated marketing services providers, offering a single-window solution for creative, media, data analytics and market research services.

It is among the top 10 diversified integrated marketing communications services groups operating in India with a comprehensive range of services in integrated marketing communications, customer data analytics and marTech and full-service market research.

During FY23, the company released over 818 creative campaigns on behalf of its clients across various media outlets and conducted over 2.37 million consumer interviews across quantitative, qualitative and telephonic surveys.

"We believe RK Swamy would get more traction post listing as it would be the first of its kind and a pure play for one-stop marketing solutions company getting listed with no apple-to-apple listed peers to compare," said Prashanth Tapse of Mehta Equities.

For FY23, the company's revenue from operations rose 25% year-on-year to Rs 293 crore. Net profit for the same period jumped 62% to Rs 31 crore.