IKIO Lighting IPO to hit Street today: Issue price, lot size, listing date, other key things to know

IKIO Lighting IPO: IKIO Lighting Ltd, a manufacturer of light-emitting diode (LED) lighting solutions, is all set to launch an initial public offer (IPO) on Tuesday, June 6. The IKIO Lighting IPO, worth an estimated Rs 607 crore, comprises fresh issuance as well as an offer for sale by existing shareholders.

Here's a list of important things to know about the upcoming IPO:

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

The basis of allotment of shares will likely be fixed on June 13 and the initiation of refunds will take place on June 14.

The IPO shares will be credited to the demat accounts of eligible investors on June 15.

The listing of shares on stock exchanges BSE and NSE is likely on June 16.

Issue price band: A  price band of Rs 270-285 per share has been set for the IPO. This translates to a cost of Rs 14,040-14,820 per lot for bidders. Retail investors will be able to bid for up to 13 lots.

The company proposes to utilise the proceeds from the fresh issuance for debt payment, investment in its wholly-owned subsidiary IKIO Solutions and general corporate purposes. Kfin Technologies is the registrar of the issue.

IKIO Lighting Ltd said it has mobilised Rs 182 crore from anchor investors ahead of its initial share sale that opens for public subscription on Tuesday. 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. 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. 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. 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). It 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 BSE and NSE.