IKIO Lighting IPO ends with robust subscription

Published on Jun 09, 2023 11:16

The initial public offer (IPO) of IKIO Lighting received bids for 1,00,92,88,696 shares as against 2,80,41,192 shares on offer. The issue was subscribed 66.30 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 163.58 times. The Non Institutional Investors (NIIs) category was subscribed 63.35 times. The Retail Individual Investors (RIIs) category was subscribed just 13.86 times.

The issue opened for bidding on Tuesday (6 June 2023) and it closed on Thursday (8 June 2023). The price band of the IPO was fixed at Rs 270-285 per share.

The issue comprised fresh issue of equity shares amounting to Rs 350 crore and an offer for sale upto 90,00,000 equity shares by promoter shareholders.

The offer for sale comprised sale of 60,00,000 equity shares by Hardeep Singh and 30,00,000 equity shares by Surmeet Kaur. Post the issue, the two selling promoters together will have 72.46% stake in the company.

Of the net proceeds from fresh issue, about Rs 50 crore will be used for repayment/ prepayment, in full or part, of certain borrowings availed by the company and its subsidiaries on consolidated basis; Rs 212.311 crore towards investment in IKIO Solutions (a wholly owned subsidiary), for setting up a new facility at Noida (in Uttar Pradesh) for carrying out electronic manufacturing services; and general corporate purposes.

IKIO Lighting is a manufacturer of light emitting diode (LED) lighting in India. It also manufactures refrigeration lights; ABS piping; fan regulators and switches as well as Led spare parts and others. The company is primarily an original design manufacturer (ODM) and designs, develops, manufactures and supplies products to customers who then further distribute these products under their own brands.

The company reported a net profit of Rs 34.58 crore and revenue from operations of Rs 240.72 crore for the nine months ended 31 December 2022.