The ₹606.50 crore initial public offering of IKIO Lighting Limited will close today for public subscription. The offer, which opened for subscription on Tuesday, has so far been subscribed to 6.83 times, as all categories of investors have shown keen interest, especially retail investors and high-net-worth individuals. 

The manufacturer of Light Emitting Diode (LED) lighting in India has fixed the price band at ₹270 to ₹285 (of face value ₹10 each). Investors can bid for aminimum of 52 equity shares and in multiples of 52 equity shares thereafter.

The IPO consists of a fresh issue of equity shares worth up to ₹350 crore and an offer-for-sale (OFS) of up to 90 lakh shares by existing shareholders.

Offer details

The offer is being made through the book-building process, wherein not more than 50 per cent of the offer shall be available for allocation to qualified institutional buyers, not less than 15 per cent of the offer shall be available for allocation to non-institutional bidders, and not less than 35 per cent of the offer shall be available for allocation to retail individual bidders.

The IPO received bids of 10.40 crore shares against the offered 1.52 crore shares, according to the data available on the stock exchanges.

The non-Institutional segment was the most subscribed at 15.99 times and the retail portion was the second most subscribed at 5.92 times, whereas, the qualified institutional buyer portion was subscribed 1.37 times.

Anchor investors

IKIO Lighting Ltd garnered ₹181.94 crore from 14 anchor investors ahead of its initial public offering that opened for public subscription on Tuesday, June 6, 2023. The company informed the bourses that it allocated 63,84,209 equity shares at ₹285 per share on Monday, June 5, 2023, to anchor investors. 

Foreign investors and domestic institutions who participated in the anchor were HDFC Mutual Fund, ICICI Prudential Mutual Fund, Goldman Sachs Asset Management, Malabar India Fund, Mirae Asset Global, Rohdea Master Fund, Motilal Oswal Select Opportunities Fund, Cohesion MK Best Ideas, and Bengal Finance and Investment, amongst others.

About IKIO

IKIO Lighting Limited’s revenue from operations on a proforma consolidated basis grew 55.47 per cent from ₹213.45 crore in fiscal 2021 to ₹331.84 crore in fiscal 2022, and profit after tax has increased 75.37 per cent from ₹28.81 crore in fiscal 2021 to ₹50.52 crore in fiscal 2022. 

The company, on a proforma consolidated basis for fiscal 2022, has a return on net worth (RoNW) of 46.40 per cent as against some of its listed peers on a consolidated basis such as Dixon Technologies (19.08 per cent), Amber Enterprises (6.30 per cent), Syrma SGS Technology (10.29 per cent), and Elin Electronics (12.93 per cent).

For the nine months ended December 31, 2022, on a proforma consolidated basis, the company’s revenue from operations stood at ₹328.63 crore, and profit after tax stood at ₹51.35 crore.

Motilal Oswal Investment Advisors Limited is the sole book-running lead manager and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on the main board of BSE and NSE.