Marketing Services stock jumped 7% after the promoter acquired a stake from Evanston Pioneer Fund L.P. The move signals increased confidence in the company’s prospects, boosting investor sentiment.
Price Variation
During Tuesday’s trading session, R K Swamy Ltd’s share price soared 6.7 percent to an intra-day high of Rs.270.00 per share, up from the previous close of Rs.253.00 apiece. The price has since retreated and is currently trading at Rs.269.50 per share.
What is the news
The promoters of R K SWAMY Limited, India’s sole listed Integrated Marketing Services Group, have bolstered their stake in the company by acquiring a 3.56 percent equity holding from the US-based Evanston Pioneer Fund L.P. at a price of Rs.249.64 per share.
The transaction, finalized on December 27, 2024, has increased the promoters’ total ownership to 69.6 percent of the company’s equity. This move reflects the promoters’ commitment to the long-term growth and stability of the business, further consolidating their control over the company.
Services Offered
R K Swamy Ltd is known for offering a wide array of services, including integrated marketing communications, customer data analytics, full-service market research, and digital marketing solutions.
These offerings position the company as a comprehensive provider, addressing various aspects of marketing strategy and execution to help clients enhance their brand presence and market impact.
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Growth Initiatives
Marketing infrastructure expansion is underway at R K Swamy Ltd, with a 600-seat expansion of the Customer Experience Centre (CXC), increasing capacity by 50 percent, and a 346-station expansion of the Computer-Aided-Telephonic-Interviews (CATI), boosting capacity by 85 percent.
Both initiatives are expected to be completed soon and could contribute approximately 10 percent to the consolidated annual revenue once fully utilized.
Financial Overview
Turning towards the financials of the company, R K Swamy Ltd reported Q2 FY25 revenue of Rs.65.62 crore, down by 18 percent from Rs.79.75 crore in the same quarter last year. Profit After Tax (PAT) decreased by 93 percent to Rs.0.52 crore, compared to Rs.7.41 crore in the same period.
Company Profile
R K Swamy Ltd, founded in 1973, is an integrated marketing services provider in India. With over five decades of operation, the company has built a presence in the marketing industry and serves a diverse range of clients across various sectors.
Written by – Siddesh S Raskar
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