The shares of IKIO Lighting made a remarkable entry into the stock market on Friday, garnering significant attention and appreciation from investors. As the company listed on the National Stock Exchange (NSE) at Rs 392.5, it showcased a premium of 37.71% or Rs 107.5 over the issue price of Rs 285. Similarly, the stock debuted on the Bombay Stock Exchange (BSE) at Rs 391, indicating a surge of 37.19% compared to the offer price. Prior to the listing, the shares were trading at a premium of approximately Rs 99 in the unlisted market.
Introduction to IKIO Lighting’s Impressive Listing
IKIO Lighting, a renowned player in the lighting industry, experienced an exceptional response from investors with its initial public offering (IPO). The IPO, which raised Rs 607 crore, included a fresh issue of Rs 350 crore and an offer for sale (OFS) of 90 lakh equity shares. The overwhelming demand from investors made it one of the most successful primary market issues of the year, with the subscription rate reaching a staggering 67 times.
Key Highlights of IKIO Lighting’s IPO
Public Offering Utilization: The net proceeds from the public offer will be utilized for repaying borrowings, investing in its subsidiary IKIO Solutions for establishing a new facility in Noida, and other general corporate purposes.
Investor Response: The issue witnessed exceptional subscription rates across investor categories.The category for qualified institutional buyers (QIBs) attracted 163.58 times as many subscriptions as the category for non-institutional investors, which received 63.35 times as many bids.The retail investors’ quota experienced a subscription rate of 13.86 times.
Business Model and Valuations: IKIO Lighting’s impressive response can be attributed to its business model of original design manufacturing (ODM), higher operating margins compared to peers, and reasonable discounted valuations during the IPO period.
Revenue Growth: The company has demonstrated robust revenue growth, with a consolidated revenue CAGR of 23% over FY20-22. The LED lighting segment, in particular, experienced a CAGR of 24% during the same period.
Financial Performance: On a proforma consolidated basis, the revenue from operations increased by 55% YoY to Rs 331 crore in FY22. Additionally, the profit after tax surged by 75% YoY to Rs 50.5 crore in the same period.
IKIO Lighting’s Future Prospects
With its successful listing and strong financial performance, IKIO Lighting is well-positioned to capitalize on the growth opportunities in the lighting industry. The company’s focus on original design manufacturing and its ability to deliver high-quality products have been key drivers of its success.
The proceeds from the IPO will enable IKIO Lighting to repay its borrowings, invest in expanding its manufacturing capabilities through the establishment of a new facility in Noida, and support its general corporate purposes. These strategic initiatives will further strengthen the company’s market position and facilitate its future growth.
IKIO Lighting‘s stellar debut on the stock exchanges highlights investor confidence and market potential for the company. With its robust business model, impressive revenue growth, and sound financial performance, IKIO Lighting is poised to thrive in the lighting industry. As the company continues to innovate and deliver cutting-edge lighting solutions, it is expected to generate value for its shareholders and contribute to the overall growth of the sector.
How did the shares of IKIO Lighting perform on their debut on the stock exchanges?
Ans. IKIO Lighting’s shares had a stellar debut on the bourses, listing at a premium of 37.71% on the NSE and 37.19% on the BSE compared to the issue price.
What was the subscription rate for IKIO Lighting’s IPO?
Ans. The IPO witnessed a remarkable subscription rate of 67 times, reflecting the strong investor demand for the company’s shares.
How will the proceeds from the public offer be utilized?
Ans. The net proceeds from the public offer will be used for repaying borrowings, investing in IKIO Solutions for establishing a new facility in Noida, and other general corporate purposes.
What factors contributed to the success of IKIO Lighting’s IPO?
Ans. The success of IKIO Lighting’s IPO can be attributed to its business model of original design manufacturing (ODM), higher operating margins compared to peers, and reasonable valuations during the IPO period.
What are the future prospects for IKIO Lighting?
Ans. With its strong market position, focus on innovation, and sound financial performance, IKIO Lighting is well-positioned for future growth in the lighting industry.