Shining bright: IKIO Lighting IPO garners massive investor response

Have a look at how different investors have responded to the IKIO Lighting IPO, and what are the company’s prospects as per experts.

IKIO Lighting IPO
  • IKIO Lighting IPO closes to a massive response from the investors
  • The company has expansion and debt settlement plans from IPO proceeds
  • Experts are optimistic about the company and its stock performance

Shares of IKIO Lighting were available at a grey market premium of Rs 113 per share, a day after its Initial Public Offering (IPO) subscription last date. This is a promising indication of the soon-to-be-listed share, which has seen an overwhelming response in IPO applications earlier.

Also ReadInvest in the future of illumination: IKIO Lighting IPO opens on 6 June

IKIO Lighting IPO response

The IPO of IKIO Lighting Limited was open for subscription between 6 and 8 June 2023. 

The quota allocated for institutional investors was oversubscribed by 163.58 times, while the high-net-worth (HNI) section was subscribed 63.35 times. The retail investor’s portion was oversubscribed by 13.86 times. Cumulatively, the IPO saw an oversubscription of 66.29 times, resulting in share bids in excess of Rs 28,000 crores. The overwhelming response from the institutional investors was seen a week earlier as well, when the company raised Rs 182 crore from 14 anchor investors. These investors included mutual fund houses like HDFC and ICICI Prudential, Goldman Sachs, and Mirae Asset Global.

Also ReadIKIO Lighting IPO: Launching on 6th June, the IPO has a price band of Rs 270-Rs 285 per share

IKIO Lighting Limited IPO details

The shares of Rs 10 face value were available for a price band of Rs 270 to Rs 285 per share. These shares will be allotted on 13 June 2023, and the shares will reflect in demat accounts on 15 June 2023. 

The IPO has a total value of Rs 607 crore, which includes a fresh issue of Rs 350 crore and an offer for sale of Rs 257 crore. The IPO will reduce the promoter's shareholding from 100% to 72.46%.

The IPO proceeds are planned to be used to repay and prepay the company and subsidiary’s borrowings on a consolidated basis. It will also be used to set up a new facility for IKIO’s subsidiary, IKIO Solutions Private Limited in Noida. Some of the proceeds will also be used for general corporate purposes.

About IKIO Lighting Limited

IKIO is a leading player in LED lighting solutions. It is an original design manufacturer of lighting, ABS piping and other products. Its customer base includes Western Refrigeration, Signify (Phillips), Panasonic, Novateur, etc.

It has three manufacturing facilities in Noida and one in Haridwar. 

Also Read: Why do you need to watch out for this Tata group IPO that could be a game changer?

Expert’s take

Several investment firms have given thumbs up to the IPO, with Anand Rathi, Swastika Investmart, Mehta Equities and Choice Broking all giving a “subscribe” rating. 

IKIO Lighting’s diverse product basket, presence in the high-margin market, and strong market presence have been duly noted as positive signs. For now, interested investors will look forward to the 16th of June when the share is listed in the bourses.

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Related: Adani Transmission shines bright: 70% YoY profit boost and 17% revenue increase, light up Q4 report 


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