The initial share sale in the three-day initial public offering (IPO) of LED lighting solutions provider IKIO Lighting Ltd would be open for public subscription from June 6 to June 8.
Price Band:
IKIO Lighting Ltd has fixed the price band for its initial public offering at Rs 270-285 per share. At the top end of this price band, the company’s valuation stands at Rs 2,200 crore.
The three-day initial public offering (IPO) will conclude on June 8. According to the company’s red herring prospectus (RHP), the bidding for anchor investors will start on June 5.
Earlier, the Noida-based firm said the initiation of refunds will be on June 14 and listing on bourses will be on June 16.
The offer consists of a fresh issue of equity shares worth up to Rs 350 crore and an offer-for-sale (OFS) of nearly 90 lakh equity shares by promoters, Hardeep Singh and Surmeet Kaur. On the upper band price, the company is expected to raise more than Rs 600 crore from the IPO.
The proceeds from the fresh issuance, amounting to Rs 50 crores will be used for debt payment, Rs 212.31 crore will be used in the company's fully-owned subsidiary, IKIO Solutions, to establish a new facility at Noida (Uttar Pradesh), and for general corporate purposes.
The company’s RHP says that the Cap Price shall be at least 105% of the Floor Price.
IKIO Lighting is a leading provider of ODM lighting, hardware, and component solutions catering to clients in India and the USA.
According to the company’s website, IKIO’s largest customer is Signify Innovations India Limited, erstwhile Philips Electronics India Limited (“Signify (Philips)”), which according to Frost & Sullivan in Fiscal 2022 had a 50% market share in India’s functional decorative lighting category (including LED spotlights, LED downlights, and cove lights) and a 10% market share in India’s true-blue decorative lighting segment (including chandeliers, wall lights, pendants, outdoor lights).
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The company specializes in providing cost-saving products, efficiency-promoting services, and distribution of the LED industry’s best solutions.
A look at the company’s financials:
For fiscal year 2023, the company reported consolidated revenue of Rs 331.84 crore compared to Rs 213.45 crore a year ago. The firm’s net profit for the year stood at Rs 50.52 crore compared to Rs 28.81 crore in the year-ago period. The company’s total debt as of December last year was Rs 145.27 crore.
Electronics is one of the fastest-growing industries in India. The total electronics market (which includes domestic electronics production and imports of electronic finished goods) in India is expected to grow at a CAGR of 17.9% to reach INR 17,902 billion (USD 240 billion)in Fiscal 2026.