The Noida-based company has fixed a price band of Rs 270-285 per equity share
IKIO Lighting IPO Subscription Day 3 (June 8): The Rs 606.50 crore initial public offering of IKIO Lighting Limited will close today for public subscription. The offer, which opened for subscription on Tuesday, has so far been subscribed to 6.83 times, as all categories of investors have shown keen interest, especially retail investors and high-net-worth individuals.
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IKIO Lighting IPO Issue Price Band:
The Noida-based company has fixed a price band of Rs 270-285 per equity share, and investors can bid for a minimum of 52 shares in one lot and multiples thereafter.
IKIO Lighting IPO Issue Size:
The total issue size of IKIO Lighting IPO is worth Rs 607 crore, comprising of a fresh issuance of equity shares worth up to Rs 350 crore and an offer-for-sale (OFS) of up to 90 lakh equity shares by promoters.
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IKIO Lighting IPO Lot Size:
The lot size of IKIO Lighting IPO is 52 shares, making the minimum investment amount for retail investors at ₹14,820. Retail investors can bid upto 13 lots.
IKIO Lighting IPO Basis of Allotment:
The basis of allotment of IPO shares will be fixed on June 13 and the initiation of refunds will take place on June 14. The IPO shares will be credited to the demat account of eligible investors on June 15.
IKIO Lighting IPO Listing Date:
The Noida-based company is likely to debut bourses on June 16, and join listed peers Dixon Technologies, Amber Enterprises, Syrma SGS, and Elin Electronics.
IKIO Lighting IPO Objective of the Issue:
The company proposes to utilise the proceeds from the fresh issuance for debt payment, investment in its wholly-owned subsidiary IKIO Solutions and for general corporate purposes.
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IKIO Lighting IPO Registrar:
Kfin Technologies is the registrar of the issue.
IKIO Lighting IPO Lead Managers:
Motilal Oswal Investment Advisors is the sole book-running lead manager to the IKIO Lighting IPO.
IKIO Lighting IPO GMP Today:
According to IPO watch, shares of Ikio Lighting enjoyed a premium of Rs 105 apiece in grey markets, translating to a likely listing price of Rs 390 on the upper price band.
IKIO Lighting IPO Reviews:
The issue has gathered mostly positive views from the analysts who suggest subscribing to the issue citing its attractive valuations, high margin products, strong performance and growth potential. However, select analysts are cautious over its dependence on a single client, competitive industry, import concerns and limited product line as the key risks for the business.
“IKIO Lighting enjoys long term relationships with most of its clients Considering the healthy business prospects, company’s high return ratios & margins, debt repayment and valuation comfort at 47.8 times P/E on annualized FY23 financials,” we recommend ‘subscribe’ to the issue, said Reliance Securities.
Company is well poised to capture the growth of the LED market with a diverse product basket & focus on high-margin areas. It enjoys long-term relationships with leading industry customers & has a strong focus on R&D. “We like the company as it has established infrastructure with backward integration along with strong and consistent financial performance,” said Hem Securities with a ‘subscribe’ tag.
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The net proceeds from the public offer will be used towards repayment of certain borrowings, investments in its subsidiary IKIO Solutions for setting up a new facility in Noida, and other general corporate purposes.
We believe IKIO offers investors an opportunity to invest in one of the growing ODM EMS businesses, which is well-positioned to capitalize on opportunities provided by the tailwinds in the LED lighting market driven in part by governmental policies for energy saving and environment protection, said Mehta Equities.”
Considering companies and industrial growth rationales, it has recommended investors to ‘subscribe’ to the IKIO Lighting IPO offer with a long-term perspective. With market sentiments recovering if any listing gains over and above 25 per cent, shall be booked, it added.
