IKIO Lighting: A Bright Start on the Stock Market
IKIO Lighting Limited, an Indian manufacturer of LED lighting solutions, made a strong debut on the bourses with a 37% premium to its issue price. The stock is listed at Rs 391 on the NSE & BSE, compared to the issue price of Rs 285. It was subscribed 66.30 times during June 6-8.
What is IKIO Lighting?
IKIO Lighting is one of the leading ODM manufacturers and end-to-end solutions providers in India for LED lighting, switches, and RV components. It is considered a part of the Make in India initiative run by the government of India. It leverages the Indian manufacturing ecosystem for its clients, offering them a distinct competitive advantage to win in the global marketplace.
The company has a diversified product portfolio, catering to various segments such as residential, commercial, industrial, outdoor, and automotive. It has a strong presence in both domestic and international markets, with exports accounting for 74.86% of its revenue in FY21.
The company has also established a subsidiary in the US, IKIO LED Lighting LLC, which is one of the leading LED lighting manufacturers in America. It has a wide network of distributors and customers across the US and Canada.
Why did IKIO Lighting go public?
IKIO Lighting decided to go public to raise funds for its expansion plans and to enhance its brand visibility. The company aimed to raise Rs 202 crore through its initial public offering (IPO), which comprised a fresh issue of Rs 100 crore and an offer for sale of Rs 102 crore by the promoter group.
The company intends to use the net proceeds from the fresh issue for:
- Repayment/prepayment of certain borrowings availed by the company
- Funding working capital requirements
- General corporate purposes
How did IKIO Lighting perform on the stock market?
IKIO Lighting received a strong response from investors for its IPO, which was open for subscription from June 6 to June 8. The IPO was subscribed 66.30 times, with bids received for 41.36 crore shares against the offer size of 62.40 lakh shares.
The qualified institutional buyers (QIBs) category was subscribed 113.86 times, while the non-institutional investors (NIIs) category was subscribed 78.73 times. The retail individual investors (RIIs) category was subscribed 19.96 times.
The company fixed the issue price at Rs 285 per share, which was at the upper end of the price band of Rs 263-285 per share2.
On June 16, the stock made a stellar debut on the stock exchanges, listing at Rs 391 on both NSE and BSE, a premium of 37% over the issue price. The stock touched an intraday high of Rs 409.95 and an intraday low of Rs 380 on the NSE. It closed at Rs 400.10 on NSE, up by 40% from the issue price.
The market capitalization of the company stood at Rs 1,120 crore at the end of the first day of trading.
What are the future prospects of IKIO Lighting?
IKIO Lighting has a strong growth potential in the LED lighting industry, which is expected to grow at a compound annual growth rate (CAGR) of 13% from FY20 to FY25 in India and at a CAGR of 9% globally during the same period.
The company has a competitive edge over its peers due to its:
- Diversified product portfolio and customer base
- Strong R&D capabilities and innovation
- Cost-effective and quality products
- Robust manufacturing facilities and supply chain
- Experienced management team and skilled workforce
The company also has a positive financial performance, with a revenue CAGR of 27% and a profit CAGR of 59% from FY19 to FY21.
With its successful IPO and listing, IKIO Lighting has established itself as a leading player in the LED lighting industry and has created value for its shareholders.
Conclusion
IKIO Lighting is a shining example of a successful Indian LED lighting manufacturer that has made a mark on the global stage. With its innovative products, strong R&D, and efficient operations, the company has delivered impressive growth and profitability. Its IPO and listing have been a milestone for the company and its investors, who can look forward to more value creation in the future.
If you are interested in learning more about IKIO Lighting and its products, you can visit their website or follow them on social media. You can also check out their subsidiary in the US, IKIO LED Lighting LLC, for more information on their offerings in the American market.
Disclaimer
This blog post is for informational purposes only and does not constitute investment advice. The views expressed are based on publicly available information and sources that we believe to be reliable. However, we do not guarantee the accuracy or completeness of the information. You should do your own research and consult a professional before making any investment decisions. We are not affiliated with IKIO Lighting or any of its subsidiaries.