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The ₹606.50 crore initial public offering of IKIO Lighting Limited opens for public subscription today and closes on Thursday.
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 a minimum 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.
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.
Anchor investors
IKIO Lighting Ltd has garnered ₹181.94 crore from 14 anchor investors ahead of its initial public offering that opens 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, Bengal Finance and Investment, amongst others.
Out of the total allocation of 63,84,209 equity shares to the anchor investors, 21,38,409 equity shares were allocated to three domestic mutual funds through a total of five schemes amounting to about ₹61 crore.
About the company
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. They also work with their customers to develop, manufacture and supply products that are designed by their customers.
Products are categorised as LED lighting, refrigeration lights, ABS (acrylonitrile butadiene styrene) piping and other products. Equipment and systems produced by the Company are used in various industries, including residential, industrial and commercial lighting.
The largest customer of IKIO Lightning is Signify Innovations India Limited (formerly known as Philips Electronics India Limited) which, in fiscal 2022, had a 50 per cent market share in India’s functional decorative lighting category (including LED spotlights, LED downlights, and cove lights), and a 10 per cent market share in India’s true-blue decorative lighting segment (including chandeliers, wall lights, pendants, outdoor lights), according to F&S Report.
The company also has a diversified customer base across industry sectors and geographies which includes Western Refrigeration Private Limited, Panasonic Life Solutions India Private Limited and Novateur Electrical & Digital Systems Private Limited.
- Also read: BYJU’S Aakash to launch IPO next year
Financial performance
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.
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