IKIO Lighting IPO Kicks Off Today, Firm Collects Rs 182 Crore From Anchor Investors

The IPO of the Noida-based firm consists of a fresh issue of equity shares worth up to Rs 350 crore and an offer-for-sale of up to 90 lakh equity stocks by promoters Hardeep Singh and Surmeet Kaur

IKIO Lighting has allotted 63.84 lakh equity shares to 16 funds at Rs 285 apiece, aggregating the transaction size to Rs 182 crore. ( Image Source :Getty )

The initial public offering (IPO) of IKIO Lighting, a LED lighting solutions provider, opens for public subscription on Tuesday and will close on June 8. The Rs 607 crore-worth IPO consists of a fresh issue worth Rs 350 crore and an offer for sale (OFS) of up to 90 lakh shares by promoters. The company has said it has mobilised Rs 182 crore from anchor investors ahead of its initial share sale. The company has allotted 63.84 lakh equity shares to 16 funds at Rs 285 apiece, aggregating the transaction size to Rs 182 crore, according to a circular uploaded on the BSE website.

The IPO of the Noida-based firm consists of a fresh issue of equity shares worth up to Rs 350 crore and an offer-for-sale (OFS) of up to 90 lakh equity stocks by promoters Hardeep Singh and Surmeet Kaur.

Societe Generale, Citigroup Global Markets Mauritius, Goldman Sachs, Malabar India Fund, Quant Mutual Fund (MF), HDFC MF and ICICI Prudential MF are among the anchor investors. The issue, with a price band of Rs Rs 270-285 per share, will be open for public subscription during June 6-8. At the upper end of the price band, the initial share sale will fetch Rs 606.5 crore.

Proceeds from the fresh issuance worth Rs 50 crore will be used for debt payment, Rs 212.31 crore in the company's wholly-owned subsidiary IKIO Solutions to set up a new facility at Noida, Uttar Pradesh, and for general corporate purposes.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 10 per cent for non-institutional investors. Further, investors can bid for a minimum of 52 equity shares and in multiples of 52 equity shares thereafter.

IKIO Lighting is a manufacturer of light-emitting diode (LED). It is primarily an original design manufacturer (ODM). The firm designs, develops, manufactures and supplies products to customers, who then further distribute these products under their brands. It has four manufacturing facilities with one located in the SIDCUL Haridwar industrial park in Uttarakhand and three in Noida in the National Capital Region.

IKIO Lighting's revenue from operations jumped 55.47 per cent on a year-on-year basis to Rs 331.84 crore in fiscal 2022 from Rs 213.45 crore in fiscal 2021 and profit after tax surged 75.37 per cent to Rs 50.52 crore from Rs 28.81 crore during the period. Motilal Oswal Investment Advisors is the sole book-running lead manager to the issue. The equity shares are proposed to be listed on the BSE and NSE.

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