IKIO Lighting Ltd, a leading provider of LED lighting solutions, has established the pricing range for its initial public offering (IPO) at Rs 270-285 per share, which values the company at Rs 2,200 crore at the top end of the band.
The Noida-based company had previously announced that its IPO will open on June 6 and close on June 8. The bidding process for anchor investors will begin on June 5. Refunds will be initiated on June 14, and listing on exchanges will be on June 16.
IPO Breakup
The initial public offering (IPO) comprises a new allocation of equity shares valued at Rs 350 crore, as well as a sale of up to 90 lakh equity shares by the promoters, namely Hardeep Singh and Surmeet Kaur. With the higher price band, the company is set to raise more than Rs 6000 crore from the IPO.
The funds raised through the fresh issuance, amounting to Rs 50 crore, will be allocated towards debt repayment. Moreover, an amount of Rs 212.31 crore will be allocated for the establishment of a new facility in Noida, Uttar Pradesh, intended for IKIO Solutions, the company's wholly-owned subsidiary. These funds will also be utilized for general corporate purposes.
IKIO Lighting is a renowned manufacturer that specializes in producing LED lighting solutions. As an original design manufacturer (ODM), the company primarily focuses on designing, developing, manufacturing, and supplying LED products. These products are then distributed by customers under their respective brands.
The Financials
IKIO Lighting operates four manufacturing facilities, including one in the SIDCUL Haridwar industrial park in Uttarakhand, and the remaining three are situated in Noida, part of the National Capital Region. Motilal Oswal Investment Advisors has been appointed as the exclusive book-running lead manager for the IPO.
In the fiscal year 2023, the company recorded consolidated revenue of Rs 331.84 crore, reflecting substantial growth from Rs 213.45 crore in the previous year. The net profit for the year amounted to Rs 50.52 crore, a significant increase compared to Rs 28.81 crore in the prior year. Total debt as of December 2022 stood at RS 145.27 crore.
