Ikio Lighting Ltd has filed draft papers with market regulator the Securities Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO consists of a fresh issue of Rs 350 crore and an offer for sale (OFS) of up to 7.50 million shares by shareholders and promoters.
The OFS comprises up to six million shares by Hardeep Singh and up to 1.5 million shares by Surmeet Kaur. Singh holds a 60 percent stake in the firm and Kaur the remaining 40 percent.
The proceeds from the fresh issue will be used to repay Rs 50 crore in debt. As of August 2022, the firm's debt totalled Rs 70.91 crore.
The firm will invest around Rs 236.68 crore in its arm Ikio Solutions to set up a facility in Noida for electronic manufacturing.
The firm has four facilities with one in the SIDCUL Haridwar industrial park in Uttarakhand and three in Noida. As of March 2022, it had an annual installed capacity to manufacture 20.31 million LED light pieces.
Motilal Oswal Investment Advisors Ltd is the book runner for the issue.
The firm is a manufacturer of light-emitting diode (LED) lighting solutions. Primarily an original design manufacturer (ODM), it designs, develops, manufactures and supplies products to customers who further distribute these products under their own brands.
As an ODM, the firm offers products in four segments— LED lighting, refrigeration lights, ABS piping and other products.
For FY22, revenue from operations stood at Rs 219.90 crore against Rs 159.66 crore a year ago. Net profit for the period stood at Rs 28 crore against Rs 20.58 crore in the previous year.