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IKIO Lighting IPO to Hit Street Today

IKIO Lighting IPO collects Rs 182 crore from anchor investors.

IKIO Lighting Ltd, maker of light-emitting diode (LED) lighting solutions, will launch its initial public offering (IPO) on Tuesday, June 6. The IKIO Lighting IPO is valued at around Rs 607 crore and includes a new issue and a sale offer from existing shareholders.

The IPO will open for subscription on June 6 and close on June 8.

The basis of the allotment of shares will likely be determined on June 13, and refunds will start on June 14. IPO shares will be credited to accredited investors’ demat accounts on June 15.

The shares will likely be listed on the BSE and NSE stock exchanges on June 16.

The price range for the IPO is Rs 270-285 per share. This means bidders cost Rs 14,040-14,820 per lot. Retail investors can bid up to 13 lots.

The company intends to use the proceeds of the new offering to repay debt, invest in its wholly-owned subsidiary IKIO Solutions and for general corporate purposes. Kfin Technologies is the registrar for this issue.

IKIO Lighting Ltd said it had raised Rs 182 crore from key investors ahead of an initial share offering that opened for public subscription on Tuesday. According to a notification uploaded on the BSE website, the company has allotted 63.84 lakh equity shares at Rs 285 each to 16 funds in a deal size totalling Rs 1.82 billion. Societe Generale, Citigroup Mauritius Global Markets, Goldman Sachs, Malabar India Fund, Quant Mutual Fund (MF), HDFC MF and ICICI Prudential MF are among the lead investors. The offering, priced at Rs 270-285 per share, will be open for public subscription between June 6-8. The Noida-based company’s IPO includes a new issue of shares worth up to Rs 350 crore and an offer for sale (OFS) of up to 90 lakh equity shares by promoters Hardeep Singh and Surmeet Kaur. The initial share sale will fetch Rs 606.5 crore at the upper end of the price range.

Proceeds from the new issue worth Rs 50 crore will be used to repay Rs 212.31 crore debt of the company’s wholly-owned subsidiary IKIO Solutions, to set up a new facility in Noida, Uttar Pradesh, and for general corporate purposes. Half of the offering size has been reserved for qualified institutional buyers (QIB), 35% for retail investors and 10% for non-institutional investors. In addition, investors can bid for a minimum of 52 shares, after which they can bid in multiples of 52 shares. IKIO Lighting is a Light Emitting Diode (LED) manufacturer. It is mainly Original Design Manufacturer (ODM). It designs, develops, manufactures and supplies products for its customers, who further distribute them under its brands.

It has four manufacturing plants, one at SIDCUL Haridwar Industrial Estate in Uttarakhand and three in Noida, National Capital Region. IKIO Lighting’s revenue from operations rose 55.47% YoY to Rs 331.84 crore in FY21 from Rs 213.45 crore in FY22, while profit after tax rose 75.37% to Rs 50.52 crore from Rs 28.81 crore over the same period. Motilal Oswal Investment Advisors is the sole book-runner in question. The equity shares are planned to be listed on BSE and NSE.

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