IKIO Lighting IPO Debut with 37.7% Premium on NSE
IKIO Lighting, a prominent player in the lighting industry, witnessed a remarkable stock market listing on Friday. The company’s shares debuted on the National Stock Exchange (NSE) at ₹392.50 per share, marking a substantial 37.7% premium over the issue price. Meanwhile, on the Bombay Stock Exchange (BSE), the stock was listed at ₹391 per share.
Throughout the trading day, the stock displayed a high of ₹412 and a low of ₹392 on the NSE.
According to Anubhuti Mishra, an esteemed Equity Research Analyst at Swastika Investmart Ltd, IKIO Lighting demonstrated a strong market entry with a listing price of ₹392. With the company’s issue price set at ₹285, investors enjoyed a remarkable gain of approximately 37%, exceeding expectations.
Mishra added, “Considering its unwavering focus on research and development, backward integration, well-established client relationships, and consistent financial performance, we maintain a positive outlook on IKIO Lighting. We recommend investors to hold onto this stock for a longer duration, setting a stop loss 10% below its listing price.”
During the subscription period, the public issue received an overwhelming response from various investor categories. Qualified institutional buyers (QIBs) subscribed to the issue 163.06 times, followed by non-institutional investors at 65.38 times, and retail investors at 14.31%. Overall, the issue garnered a subscription rate of 67.75 times. On Day 2 and Day 1, the issue saw subscription rates of 7.02 times and 1.61 times, respectively.
For the proposed initial public offering, IKIO Lighting established a price band of ₹270 to ₹285 per equity share. The subscription period for the public issue commenced on Tuesday, June 6, and concluded on Thursday, June 8.
The IKIO Lighting IPO, valued at ₹607 crore, consists of an offer for sale (OFS) of up to 90 lakh shares by the promoters and a fresh issuance of ₹350 crore.
Promoters Hardeep Singh and Sumeet Kaur will participate in the OFS by selling 60 lakh and 30 lakh equity shares, respectively.
The funds raised through the fresh issue will be invested in a wholly-owned subsidiary of IKIO Solutions. This investment aims to support the construction of a new facility in Noida, Uttar Pradesh, and cater to general corporate requirements. On the other hand, the proceeds from the OFS will be allocated to the selling stockholders.
Also Read: All Current and Upcoming IPOS Details
IKIO Lighting successfully secured ₹182 crore from anchor investors. The company allotted 63.84 lakh equity shares to a total of 16 funds at an issue price of ₹285 per share.
For interested investors, a market lot comprises 52 equity shares. Eligible institutional buyers can bid for a maximum quantity of 1,52,24,040 equity shares, while non-institutional investors can bid for up to 1,09,81,464 equity shares. The minimum bid quantity is 52 equity shares.
The IPO’s book-running lead manager is Motilal Oswal Investment Advisors, and its registrar is KFin Technologies.
About IKIO Lighting:
IKIO Lighting Limited, which was founded in 2016, has become a well-known Indian company that produces LED lighting solutions. In the past seven years, the business has solidified its position as a dedicated supplier of energy- and environmentally-conscious LED goods, aligning with India’s commitment to a more sustainable future. IKIO provides a wide selection of goods that fall into many categories, such as LED lighting solutions, refrigeration lights, ABS (acrylonitrile butadiene styrene) pipework, and other cutting-edge items.
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