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The fourth IPO in this financial year opened for subscription this week. IKIO Lighting IPO subscription opened on 6th June and closes on 8th June. In this article, we will share all the relevant information that would help you decide whether to subscribe or invest in the IPO for the long term. Let us get started.
IKIO Lighting IPO: Key Details
Below are the key details related to IKIO IPO
IKIO Lighting Business & Products
IKIO is a relatively new company with less than 10 years in the business - incorporated in 2016. They are an Indian manufacturer of light-emitting diode (LED) lighting solutions. IKIO is primarily an Original Design Manufacturer (ODM), a company that takes the original specifications of another company or individual and builds the design.
They manufacture and assemble other products including fan regulators that are designed by their clients - light strips, molding, and other components and spares.
IKIO has four manufacturing facilities, with three in Noida in the National Capital Region and one in the SIDCUL Haridwar industrial park in Uttarakhand.
Their products are categorized into 4 categories:
IKIO Lighting: Industry overview
The business of IKIO falls under EMS - Electronic Manufacturing Services. To be precise, they work in the LED segment. In India, the LED business is booming, and the government has designated LED as one of its strategic priorities.
The Indian government continues to drive for LED lighting and measures to replace conventional CFL and GLS lights. Up to 2022, the Indian government has installed over 12 million LED lights as part of the Street Lighting National Programme.
Incandescent bulbs, CFL lights, and halogens have dominated the lighting market for centuries now but over the last decade LED lights have become very popular in the Indian lighting industry. Many have adopted the new LED lights over the traditional incandescent and fluorescent lights. It is because LEDs give more light, has a lesser environmental impact, and last longer as compared to incandescent bulbs.
IKIO Lighting: Listed Peers
IKIO Lighting faces competition from both Indian and global companies. Among global peers, the competitors include names like Bharat FIH, Flex, Pegatron, Wistronand Jabil. The Indian peers include companies like Dixon, Amber, SFO, Syrma, Elin, and Centum, among others.
IKIO competes primarily based on product and services offering, systems and spares, quality of the products, quality of installation, operation and maintenance services, security of supply, and cost-effective manufacturing and services. Let us compare them on key financial metrics:
What are the competitive strengths of IKIO Lighting?
As per the company, their competitive strength is as below:
Risks associated with the IKIO Lighting business
Below are the risks the company has highlighted in its RHP documents:
Critical Note
Since September 12, 2022, IKIO owns 100% of the equity shareholding of its subsidiaries. As the company did not own 100% of the equity shareholding of its subsidiaries until September 12, 2022, the Restated Consolidated Financial Information does not include financial information for their subsidiaries prior to their acquisitions by the company.
Accordingly, the Restated Consolidated Financial Information, as of, and for the nine-month period ended December 31, 2022, and as of, and for the years ended, March 31, 2022, 2021 and 2020, are not comparable to any future financial results that they may prepare. In addition, because of their nature, the Proforma Consolidated Financial Information addresses a hypothetical situation and, therefore, does not represent the factual results of operations or financial condition