IPO of IKIO Lighting lists with a premium of 38%; will it reach Rs 500 today?

Today, IKIO Lighting Ltd made a remarkable debut on both the NSE and BSE, with a substantial premium of 38% as expected. On the NSE, the stock opened at Rs 392.50, marking a 37.7% increase from its issue price of Rs 285.   

Similarly, on the BSE, it opened at Rs 391, reflecting a 37.19% rise from its issue price. The stock quickly surged to Rs 400 within a few minutes and is currently trading around Rs 418 on the BSE. Some Analysts were expecting the IPO likely to deliver an upside of around 30-35% considering the strong response, good anchor books, and good premium in the grey market.    

The company’s total market capitalisation now stands at Rs 3253 Crore. The stock has touched intraday highs and lows of Rs 427.50 and Rs 392, respectively.   

The investors have shown keen interest in the newly listed company, resulting in a traded volume of approximately 2.36 Crore shares as of now on NSE. The overall market is showing bullishness today and the Nifty 50 index is also trading around 18770, 0.44% up from its previous closing of 18688.     

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.    

The 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 was asking a premium of Rs 118 in the unlisted market on the closing day of the IPO, 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.    

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 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.  

Below is the financial overview of the company.  

*Amount in Rs Crore  

With its robust emphasis on research and development, good client relationships, and steady financial track record, IKIO Lighting looks attractive. Long-term investors may hold the stock for magnificent returns in the long term.