Issue Subscribed 1.55 Times On Day 1
IKIO Lighting’s IPO gets subscription of 1.64 times
MUMBAI, June 6 (The CONNECT) – IKIO Lighting Limited, a leading manufacturer of Light Emitting Diode (LED) Lighting, has received bids of 2,36,67,020 shares against the offered 1,52,24,074 equity shares, at a price band of ₹270-R285, according to the data available on the stock exchanges.
Overall, the issue was subscribed 1.55 times on the first day of bidding.
Non-Institutional segment was the most subscribed with 2.97 times, Retail Portion was the second most subscribed with 1.64 times, whereas, Qualified institutional buyer portion was subscribed 0.3 times.
The issue kicked off for subscription today and will close on Thursday.
IKIO Lighting Ltd raised Rs 182 crore from 14 anchor investors yesterday. Foreign Investors and Domestic Institutions who participated in the anchor includes HDFC Mutual Fund, ICICI Prudential Mutual Fund, Goldman Sachs Asset Management, Malabar India Fund, Mirae Asset Global, Rohdea Master Fund, Motilal Oswal Select Opportunities Fund, Cohesion MK Best Ideas, Bengal Finance and Investment.
Broking houses like Anand Rathi, SBI Securities, Choice Equity Broking, Swastika Investmarts, Marwadi Financial Services, Hem Securities and Religare Broking, have given a “Subscribe” rating to the issue
The said brokerages have collectively stated that IKIO lacks a peer company with operations that are comparable to its own, hence it is compared to businesses in the EMS sector and is solely taken into account for valuation benchmarking. Signify, the industry leader in decorative lighting in India, is IKIO’s biggest client. A significant decline in the former’s market share could reduce the latter’s uptake. Any maker of contracts must continually onboard new clients. Growth might be slowed down significantly. When compared to its close counterparts, the IPO appears to be properly valued across a variety of valuation metrics.
Motilal Oswal Investment Advisors Limited is the sole book running lead manager and KFin Technologies Limited is the registrar to the offer.
IKIO Lighting is primarily an Original Design Manufacturer (ODM) design, develop, manufacture and supply products to customers who then further distribute these products under their own brands and they work with their customers to develop, manufacture and supply products that are designed by their customers. Products are categorized as LED lighting, refrigeration lights, ABS (acrylonitrile butadiene styrene) piping and other products. Equipment and systems produced by the company are used in various industries, including residential, industrial and commercial lighting.
In Fiscal 2022, Signify Innovations India Limited, (formerly known as Philips Electronics India Limited) was the largest customer of the IKIO Lightning was, with 50% market share in the decorative lighting category (including LED spotlights, LED downlights and cove lights) and a 10% market share in true-blue decorative lighting segment (including chandeliers, wall lights, pendants, outdoor lights) according to Frost & Sullivan Report.
