IKIO Lighting makes a strong debut on D-Street; here's what Anil Singhvi recommends

IKIO Lighting made a strong debut in the secondary market on Friday, June 16. The stock of IKIO Lighting — a Noida-based manufacturer of LED lighting solutions whose IPO concluded last week with a subscription of more than 66 times the shares on offer — began its trading journey at Rs 391 apiece on BSE, a premium of 37.2 per cent over the upper end of the IPO price range. 

The stock opened on NSE at Rs 392.5 apiece, a premium of 37.7 per cent. The new kid on the block, IKIO Lighting, crossed the Rs 400 mark within the first few minutes, trading with the symbol IKIO on both stock exchanges. The listing was in line with market wizard Anil Singhvi's expectations.

The IKIO Lighting stock finished the listing day at Rs 403.8 apiece on BSE and Rs 404.5 apiece on NSE. 

EDITOR'S TAKE | What Anil Singhvi recommends

Zee Business Managing Editor Anil Singhvi said investors with a long-term view must hold IKIO Lighting shares and add to their holding around or below the Rs 350 per share level. 

He had predicted IKIO Lighting shares to list at Rs 360-380 per share — translating to a premium of 26-33 per cent over the upper end of the issue price band, and recommended subscribing to the IPO for listing gains and for the long term. 

What IKIO Lighting management says 

The company's management said it aims to maintain at least the same level of growth in revenue as well as profit. 

"We mean business... We will continue to work just as hard. We thank investors for putting their trust in us," IKIO Lighting Managing Director Hardeep Singh told Zee Business. 

The company has registered revenue growth of 25-30 per cent in the last 2-3 years, said Subhash Agarwal, CFO of IKIO Lighting. 

IKIO Lighting IPO: Key things to know

After a three-day bidding process, the IKIO Lighting IPO concluded on June 8 with bids for a total of 100.9 crore shares across both the bourses as against the 1.5 crore shares on offer with strong participation from different types of investors, according to exchange data.  

Out of the total shares on offer under the IKIO Lighting IPO, 35 per cent were reserved for retail investors, 15 per cent for non-institutional investors (NIIs) — also known as high net-worth individuals (HNIs) — and 50 per cent for qualified institutional investors (QIBs)

Under the IPO, which was open for subscription from June 6 to June 8, investors could bid for shares a price band of Rs 270-285 apiece in multiples of 52. 

The IPO comprised fresh issuance of shares and an offer for sale (OFS) by existing shareholders. Read more on IKIO Lighting IPO

Prior to the launch fo the IPO, the company mobilised Rs 182 crore from anchor investors by allotting 63.8 lakh shares at Rs 285 apiece. Read more on IKIO Lighting anchor investors

What analysts say 

Most analysts have positive views on IKIO Lighting. "With market sentiments recovering, if we get any listing gains over and above 25 per cent, we recommend allotted investors to book profit on the listing day while risk seekers can hold for medium to long term," said Prashanth Tapse, Senior VP (Research) at Mehta Equities. 

Tapse found the IPO to be reasonably priced given the average industry price-to-earnings ratio of 55 times.

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