The initial public offering (IPO) of Ikio Lighting, an original design manufacturer of LED lighting products, will open for subscription on Tuesday (June 6) and will remain open for three days, and conclude on Thursday (June 8). The IPO comprises a fresh issue of equity shares worth up to Rs 350 crore and an offer for sale (OFS) of up to 90 lakh shares.

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The company has fixed a price band of Rs 270-285 per equity share and investors can bid for a minimum of 52 shares in one lot and multiples thereafter. At the upper end of the price band, the company plans to raise about Rs 607 crore.

Ahead of subscription, the grey market premium (GMP), which indicates the premium commanded by shares in the unlisted market, is at Rs 95, according to market observers. IKIO Lighting IPO GMP was Rs 50 per share on Friday. The IKIO Lighting IPO GMP on June 2 was unchanged as compared to the GMP on June 1. The GMP on May 31 was Rs 20.

The expected listing price for Ikio Lighting shares, according to June 5 GMP of Rs 95 and considering the upper price band of Rs 285, will be Rs 380 per share.

Under the share sale, promoters Hardeep Singh will offload 60 lakh shares and Surmeet Kaur will sell about 30 lakh shares.

As much as 50 percent of the issue is reserved for qualified institutional buyers (QIB), 35 percent of the offer is set aside for retail investors and 15 percent for non-institutional investors.

The net proceeds from the public offer will be used to repay borrowings, invest in its subsidiary IKIO Solutions for setting up a new facility in Noida, and other general corporate purposes.

The company's shares will likely get listed on both the stock exchanges BSE and NSE on June 16.

Kfin Technologies is the registrar of the issue, while Motilal Oswal Investment Advisors is the sole book-running lead manager to the IKIO Lighting IPO.

The company's revenue from operations on a proforma consolidated basis grew 55.47 percent from Rs 213.45 crore in fiscal 2021 to Rs 331.84 crore in fiscal 2022 and profit after tax has increased 75.37 percent from Rs 28.81 crore in fiscal 2021 to Rs 50.52 crore in fiscal 2022.

Ikio Lighting, on a proforma consolidated basis for the fiscal year 2022, had a return on net worth (RoNW) of 46.40 percent as against some of its listed peers on a consolidated basis such as Dixon Technologies (19.08 percent), Amber Enterprises (6.30 percent), Syrma SGS Technology (10.29 percent) and Elin Electronics (12.93 percent).

Ikio Lighting is a manufacturer of light-emitting diode (LED) lighting solutions focused on providing sustainability and low-energy LED products.

First Published:Jun 5, 2023 11:26 AM IST