- Date : 31/05/2023
- Read: 4 mins
IKIO Lighting's IPO presents a golden opportunity to invest in the thriving LED solutions market. Discover how you can shine a light on your portfolio.
- Join the LED solutions revolution with IKIO Lighting's upcoming IPO.
- Invest in a company poised for growth in the expanding LED industry.
- Secure your stake and capitalise on the increasing demand for energy-efficient lighting solutions.
- Don't miss out on the chance to be part of IKIO Lighting's success story.
IKIO Lighting Ltd, a prominent provider of LED lighting solutions, is all set to open its initial public offering (IPO) for public subscription 5 June. The IPO, which spans three days, will conclude on 8 June, offering investors an opportunity to be part of the company's growth story. The bidding for anchor investors will open on 5 June, according to the red herring prospectus (RHP) released by the company.
IKIO Lighting is a leading manufacturer of light-emitting diode (LED) lighting solutions. It operates as an original design manufacturer (ODM), designing, developing, manufacturing, and supplying products to customers who further distribute these products under their own brands. The company currently has a manufacturing unit in the SIDCUL Haridwar Industrial Park in Uttarakhand and three more in Noida, within the National Capital Region.
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IKIO Lighting IPO Details
The IPO is issuing equity shares valued at up to Rs. 350 crore, along with an offer-for-sale (OFS) of up to 90 lakh equity shares by promoters Hardeep Singh and Surmeet Kaur, at the price of Rs. 10 per share. The funds raised through the fresh issuance, amounting to Rs. 50 crores, will primarily be utilised for debt repayment. Additionally, Rs. 212.31 crore will be allocated to IKIO Lighting's wholly-owned subsidiary, IKIO Solutions, for establishing a new facility in Noida, Uttar Pradesh. The remaining proceeds will be utilised for general corporate purposes.
By going public, IKIO Lighting aims to access the capital markets to support its expansion plans and enhance its competitive position in the LED lighting industry. The fresh issuance of equity shares will strengthen the company's financial position and enable it to invest in technology, research and development, and infrastructure. The establishment of a new facility in Noida will further augment its manufacturing capabilities and meet the growing demand for LED lighting solutions.
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IKIO Lighting Financials
As of December 2022,the net worth of the company stands north of Rs. 140 crores, a 22.7% increase in valuation from March 2022. Furthermore, its profit after tax increased to Rs. 51.35 crores in the quarter ended December 2022. Furthermore, with its ROE at 0.36, debt equity ratio of 1.03, and EPS at Rs. 7.9, it presents an attractive opportunity for investors to grow their wealth.
What is in it for investors?
The IPO presents a significant opportunity for investors to be part of a growing industry. The demand for LED lighting solutions has been steadily increasing due to their energy efficiency, long lifespan, and environmentally friendly characteristics. IKIO Lighting has established itself as a reliable player in the market, catering to various sectors such as commercial, residential, industrial, and institutional. With its strong manufacturing capabilities, commitment to quality, and focus on innovation, IKIO Lighting is well-positioned to capitalise on the increasing demand for energy-efficient lighting solutions.
Motilal Oswal Investment Advisors has been appointed for managing and overseeing the offering process. The equity shares of IKIO Lighting are proposed to be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), providing investors with a choice of platforms for trading and liquidity.
As the IPO opens on 6 June, investors and industry observers eagerly await the outcome and the subsequent listing of IKIO Lighting on the stock exchanges. The response from the market will not only gauge investor confidence in the company but also reflect the overall sentiment towards the LED lighting sector.