IPO screener: IKIO Lighting issue opens for subscription
The initial public offering of IKIO Lighting Limited opens at Rs 606.50 crore IPO today and closes on Thursday.
The LED lighting manufacturer in India, has fixed the price range from Rs 270 to Rs 285 (from $10 face value each). Investors can bid on as few as 52 shares of stock and multiples of 52 shares after that.
The initial public offering consists of a new issuance of equity shares worth up to Rs 350 crore and an offer for sale (OFS) of up to 90,000 shares by the existing shareholders.
The bid shall be submitted through the record building process, whereby no more than 50 percent of the offer must be available for assignment to qualified institutional bidders, no less than 15 percent of the offer must be available for assignment to non-institutional bidders, and what Not less than 35 percent of the offer is available for allocation to individual bidders.
The main investors
IKIO Lighting Ltd has secured Rs 181.94 crore from 14 anchor investors ahead of its Initial Public Offering which opens for public subscription on Tuesday 6th June 2023. The company has informed the exchanges that it has allocated 63,84,209 shares of stock at a price of $285 each on Monday 5th June 2023, to attract investors.
The foreign and local institutional investors 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, Among other things.
Out of the total allocation of 63,84,209 equity shares to anchor investors, 21,38,409 equity shares have been allocated to three local investment funds through a total of five schemes worth around Rs.61 crore.
About company
The company is primarily an Original Design Manufacturing (ODM) company and designs, develops, manufactures and supplies products to customers who then distribute these products under their own brands. They also work with their customers to develop, manufacture and supply products designed by their customers.
The products are classified as LED lighting, cooling lights, ABS (acrylonitrile butadiene styrene) tubes and other products. The equipment and systems produced by the company are used in various industries, including residential, industrial and commercial lighting.
IKIO Lightning’s largest customer is Signify Innovations India Limited (formerly Philips Electronics India Limited) which in fiscal year 2022 had a 50 per cent market share in the functional decorative lighting category in India (including LED flood lights, LED downlights and LED downlights). Grotto), and a 10 percent market share in the true blue decorative lighting segment in India (including chandeliers, wall lamps, pendants, and outdoor lights), reports F&S.
The company also has a diversified client 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.
Financial performance
IKIO Lighting Limited Revenue from operations on a consolidated primary basis grew by 55.47 per cent from Rs.213.45 crore in FY2021 to Rs.331.84 crore in FY2022, profit after tax increased by 75.37 per cent from Rs.28.81 crore in FY2021 to Rs.50.52 crore in the financial year 2022.
The company, on a Proforma Consolidated basis for fiscal year 2022, has a return on net worth (RoNW) of 46.40 percent versus some of its peers listed on a consolidated basis such as Dixon Technologies (19.08 percent), Amber Enterprises (6.30 percent), and Sirma SGS Technology (10.29 percent), and Ellen Electronics (12.93 percent).
For the nine months ended 31st December 2022, on a consolidated pro forma basis, the Company’s Revenue from Operations was Rs. 328.63 crores and Profit after Tax was Rs. 51.35 crores.
Motilal Oswal Investment Advisors Limited is the sole managing book, and KFin Technologies Limited is the registrant of the offer. It was proposed to list equity shares in the main board of directors of Bahrain Stock Exchange and NSE Company.