IKIO Lighting IPO Listing: Company Made a Strong Entry in the Market Today
IKIO Lighting IPO
IKIO Lighting, a company that specializes in designing, manufacturing, and selling LED-related products, recently conducted an Initial Public Offering (IPO) to list its shares on the stock market.
The IPO, worth Rs 607 crore, has garnered a significant amount of interest from investors. In fact, the issue was oversubscribed by a remarkable 67.75 times primarily due to the participation of Qualified Institutional Investors (QIB).
IKIO Lighting operates under a unique business model where it manufactures LED products and then sells them to customers who subsequently market and distribute the products under their own brand names.
The company boasts four manufacturing plants, with one situated in the Sidkul Haridwar Industrial Park in Uttarakhand, and the remaining three located in Noida, Uttar Pradesh.
The overwhelming response to IKIO Lighting’s IPO highlights the market’s positive reception to the company’s offerings.
With its strong presence in the LED industry and efficient manufacturing capabilities across multiple plants, IKIO Lighting is poised to further expand its market share and capitalize on the growing demand for energy-efficient lighting solutions.
IKIO Lighting, a company specializing in LED-related services, successfully listed its shares on the market today. The IPO garnered significant interest from investors, with a subscription rate of 67.75 times.
The shares debuted at Rs 391, benefiting from a positive market sentiment and providing investors with a substantial listing gain of 37%, equivalent to Rs 106 per share. The lot size for the shares was 52.
During the IPO, the shares were offered to investors at a price of Rs 285 per share. Since its entry into the market, the shares have performed well and are currently trading at Rs 403.05 on the Bombay Stock Exchange (BSE).
This indicates a positive response from the market and suggests growing confidence in IKIO Lighting’s prospects.
Huge Response to IKIO Lighting IPO
The IPO of IKIO Lighting, valued at Rs 607 crore, has generated a tremendous response from investors.
The overall subscription rate for the IPO stood at an impressive 67.75 times, primarily driven by the participation of Qualified Institutional Investors (QIB). QIBs subscribed to the IPO at a rate of 163.06 times, indicating their strong interest and confidence in the company’s prospects.
Non-Institutional Investors (NIIs) also showed considerable enthusiasm, with their subscription rate reaching 65.38 times.
Retail investors, too, displayed interest in the IPO, subscribing at a rate of 14.31 times. This widespread participation from different investor categories underscores the appeal and potential of IKIO Lighting.
As part of the IPO, new shares worth Rs 350 crore were issued at a price of Rs 285. Additionally, 90 lakh shares were sold through an offer for sale.
The funds raised from issuing new shares, amounting to Rs 50 crore, will be utilized to repay existing loans. Moreover, a significant portion of Rs 212.31 crore will be invested in Irio Solutions, IKIO Lighting’s wholly-owned subsidiary, for the construction of a new plant in Noida.
This strategic investment aims to expand the company’s manufacturing capabilities and support its growth trajectory.
The remaining funds will be allocated for general corporate purposes, allowing IKIO Lighting to enhance its overall operations and strengthen its market position.
About the Company
IKIO Lighting is a company that specializes in the design, manufacturing, and sale of LED-related products. These products are then distributed by customers under their own brand names, leveraging IKIO Lighting’s expertise and quality offerings.
The company operates four manufacturing plants, with one situated in the Sidkul Haridwar Industrial Park in Uttarakhand, and the remaining three located in Noida, Uttar Pradesh.
These strategically located plants enable efficient production and distribution of their LED products.
In terms of financial performance, IKIO Lighting has shown a positive trajectory. The company’s net profit has witnessed consistent growth over the years. In FY 2020, it recorded a net profit of Rs 21.41 crore.
This figure increased to Rs 28.81 crore in FY 2021, showcasing a notable improvement. In the subsequent fiscal year, FY 2022, IKIO Lighting’s net profit further surged to Rs 51.35 crore.
This upward trend in net profit demonstrates the company’s ability to generate higher revenues and improve its profitability over time.
The consistent increase in net profit highlights IKIO Lighting’s effective business operations, customer demand for its LED products, and its ability to capitalize on market opportunities.
By continuously enhancing its offerings and maintaining a strong financial standing, the company is well-positioned to sustain growth and further solidify its presence in the LED industry.
