IKIO Lighting IPO gets subscribed 66.3 times on concluding day of issue

The initial public offering (IPO) of IKIO Lighting was subscribed 66.3 times on Thursday, the concluding day of the issue. The institutional investor portion was subscribed 163.58 times, the high net worth individual (HNI) portion was subscribed 63.3 times, and the retail institutional investor (RII) portion by 13.8 times. The offering garnered bids worth more than Rs 28,000 crore.

The share sale by the LED manufacturer evoked strong demand from institutional investors. Earlier this week, IKIO had raised Rs 182 crore from 14 anchor investors. The investors participating in the anchor allotment include HDFC Mutual Fund, ICICI Prudential Mutual Fund, Goldman Sachs Asset Management, and Mirae Asset Global.

IKIO had priced its IPO between Rs 270 to Rs 285 per share. The Rs 607-crore IPO was a combination of a fresh issue of Rs 350 crore and an offer for sale of Rs 257 crore. The company plans to utilise the net proceeds of the fresh issue to repay its debts, invest in a wholly-owned subsidiary, and set up a new facility.

At the top-end of the price band, the company is valued at Rs 2,203 crore. For the nine-month period ended December 2022, IKIO had posted net profit of Rs 35 crore on revenues of Rs 241 crore.

Analysts said IKIO’s better margins, growth visibility, and attractive pricing made the stock a good buy. IKIO manufactures light-emitting diode (LED) lighting solutions. The company is focused on providing low-energy LED products.  

The company is primarily an original design manufacturer (ODM) and designs, develops, manufactures and supplies products to customers who further distribute them under their own brands. The company also works with their customers to develop, manufacture and supply products that its customers design.

The company manufactures LED lighting, refrigeration lights and other products. Our LED lighting offerings focus on the premium segment and include lighting, fittings, fixtures, accessories and components.