The Indian IPO market in 2023 has experienced a lull compared to the previous years, with fewer companies going public. This subdued activity reflects a cautious approach amidst global uncertainties, as businesses navigate the evolving economic landscape. In contrast, IKIO Lighting Limited, an established Indian LED lighting solutions manufacturer since 2016, is set to launch its initial public offering (IPO).
IKIO Lighting Ltd IPO will open for subscription on 6th June 2023 and will close on 8th June 2023.
Here are all the essential details of IKIO Lighting Ltd IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
Read More: How and when to invest in Unlisted / Pre-IPO stocks?
IPO Details
The key details of the IKIO Lighting Ltd IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 6th June 2023 |
| IPO Closing Date | 8th June 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Re. 10 per share |
| IPO Price Band | Rs. 270 – Rs. 285 per share |
| IPO Size | Rs. 607 crores |
| Offer For Sale | Rs. 257 crores |
| Fresh Issue | Rs. 350 crores |
- IPO Dates
The important dates for the IKIO Lighting Ltd IPO are highlighted below:
| Event | Date |
| Opening date | 6th June 2023 |
| Closing Date | 8th June 2023 |
| Allotment date | 13th June 2023 |
| Refund Date | 14th June 2023 |
| Share Credit Date | 15th June 2023 |
| Listing Date | 16th June 2023 |
- IPO Lot Sizes
Investors can subscribe to the shares of IKIO Lighting Ltd IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 14,040 – 14,820 Maximum – Rs. 1,92,660 |
| Shares | Minimum – 52 Maximum – 676 |
- IPO Reservation
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 35% |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
IKIO Lighting Limited IPO Objectives
This IPO is a mix of Offer for Sale and Fresh Issue. The proceeds from the issue will be utilised in the following manner:
- Repayment/ prepayment, in full or part, of certain borrowings availed by the Company and its subsidiaries on consolidated basis.
- Investment in the wholly owned Subsidiary, IKIO Solutions Private Limited, for setting up a new facility at Noida, Uttar Pradesh
- General corporate purposes
Top things to know about IKIO Lighting Ltd IPO
Established in 2016, IKIO Lighting Limited has made a name for itself as an Indian producer of light-emitting diode (LED) lighting solutions. Over its seven-year history, the company has concentrated on offering sustainable and energy-efficient LED products to support India’s sustainability objectives.
IKIO’s product range encompasses LED lighting, refrigeration lights, ABS (acrylonitrile butadiene styrene) piping, and other related items.
As an Original Design Manufacturer (ODM), the company primarily designs, develops, manufactures, and supplies products to clients who then distribute them under their own brands. Additionally, IKIO collaborates with customers to create, manufacture, and supply products based on their designs.
IKIO’s LED lighting portfolio targets the high-end market segment, featuring lights, fittings, fixtures, accessories, and components tailored to meet the unique needs and expectations of their clientele.
Financials of the company
IKIO Lighting Ltd financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS | Return on Net Worth |
| Mar-2022 | 265 | 332 | 51 | Rs. 7.7 | 46.40% |
| Mar-2021 | 174 | 213 | 29 | Rs. 4.43 | 45.83% |
| Mar-2020 | 149 | 220 | 21 | Rs. 3.29 | 59.63% |
Strengths of the company
Some of the key strengths of IKIO Lighting Ltd that investors can take note of are:
| Category | Details |
| Business model | 1. Diverse product basket with focus on high-margin areas 2. Long-term relationships with leading industry customers 3. Strong focus on R&D Established infrastructure with backward integration 4. Strong and consistent financial performance |
| Future prospects | Poised to capture growth of LED market |
Risks of investment
Here are some of the risks that investors of IKIO Lighting IPO should know:
| Category | Details |
| Business viability and profitability | 1. Business could be adversely affected by volatility in the price or availability of raw materials and components 2. The business is heavily dependent on and will continue to rely on manufacturing facilities to continue operating 3. Political, economic or any other factors beyond control may have an adverse effect on the business and results of operations. 4. Dependency on their subsidiaries exposes them to significant risks |
| Other concerns | 1. Since the industry segments in which company operates is fragmented, it may face competition from other large and small 2. Delays or defaults in customer payments and receivables may adversely impact profits and affect cash flows |
What is the Grey Market Premium (GMP) of IKIO Lighting Ltd IPO?
As of June 4th, 2023, the grey market premium for the shares of IKIO Lighting Ltd IPO is approximately Rs. 50 as per market observers.
Should you apply for IKIO Lighting Ltd IPO?
The company’s strong track record in building long-term customer relationships and high customer retention rate indicate its ability to provide value and maintain a loyal customer base. Furthermore, IKIO Lighting is well-positioned to benefit from the growth of the LED market, supported by government energy savings and efficiency policies. The significant increase in the company’s lighting product portfolio and its ability to cater to a large number of domestic and international customers demonstrate its growth potential.
Considering these factors, along with the company’s notable market position and competitive peers, investing in the IKIO IPO may present an opportunity for potential returns. However, it is essential for investors to conduct their own due diligence and evaluate the company’s financials, risks, and industry dynamics before making any investment decisions.
How to apply for IKIO Lighting Ltd IPO?
Investors can invest in this IPO through the Fisdom app.
IKIO Lighting Ltd IPO FAQs
The IKIO Lighting Limited will be listed on both BSE and NSE on 16th June 2023, Friday.
While it is not possible to accurately determine listing gains prior to the IPO shares being listed on the stock exchange, investors can keep an eye on the GMP or Grey Market Premium to ascertain the possibility of listing gains.
You must complete the UPI mandate authorisation by logging in to your UPI handle and approve the payment towards IPO.
Yes, to apply for any IPO, you need to have a Demat account. To open a Demat account today, you can download the Fisdom app on your smartphone.
