IKIO Lighting IPO: Illuminate your portfolio with a brilliant mega-listing opportunity

Business Overview 

IKIO Lighting Limited is an Indian manufacturer of light-emitting diode (LED) lighting solutions. It initially started as a manufacturer of fan regulator switches and rotary potentiometers for the audio and TV industry in 1999. In 2008, the company expanded into the LED manufacturing space. They design, develop, manufacture, and supply products for customers who distribute these products under their own brands. 

The company’s product portfolio comprises LED lighting, refrigeration lights, ABS piping, and other products. Their LED lighting offerings focus on the premium segment and include lighting, fittings, fixtures, accessories, and components. They also provide lighting solutions to commercial refrigeration equipment suppliers under the refrigeration light segment. Additionally, IKIO manufactures ABS piping, an alternative to PVC piping primarily used for plumbing applications in recreational vehicles by US customers. One of the major customers of IKIO is Philips India which has 50% market in the decorative lighting category and for them, Philips is the biggest customer contributing 62% of IKIO’s revenue. 

Industry Overview 

The LED lighting market in India is projected to experience a compound annual growth rate (CAGR) of 12% from FY22 to FY26E, reaching Rs 33,800 Crore. Simultaneously, the Indian home and decorative lighting market are expected to grow at a CAGR of 14%, reaching Rs 6,000 Crore during the same period. 

The growth in LED lighting is primarily driven by innovative smart city initiatives, infrastructure development, increased expenditure on home renovations, and rising demand for energy-efficient lighting solutions. 

Financials  

In FY22, LED lighting accounted for 87% of IKIO’s revenue from operations. The company is maintaining its ROCE and ROE at 26% and 36%, respectively while debt to equity is 1.03 times. 

*Amount in Rs Crore  

IPO Subscription details 

The IPO opened on June 06, 2023, having a lot size of 52 shares with a price band of Rs 270 to Rs 285 per share. The size of this IPOs is Rs 607 Crore. On June 08, 2023 IPO window is closed for subscription. This IPO got a good response from the investors and got subscribed by 67.75 times in total. The Public issue subscribed by 14.31 times in the retail category, 163.06 times in the QIB category, and 65.38 times in the NII category. The grey market premium (GMP) of the company’s shares is asking a premium of Rs 118 in the unlisted market, with listing gains looking more and more likely. 

Furthermore, IKIO Lighting has garnered Rs 182 Crore from 14 anchor investors. The company allocated 63.84 lakh equity shares at Rs 285 per share on June 05, 202. to anchor investors. 

Considering the anchor investors and subscription details it is more likely to list with an impressive listing gain. The listing date will be June 16, 2023. Save the date to enjoy the listing show.