IKIO Lighting IPO: 10 things to know about the public offer

The initial public offering of IKIO Lighting will open for subscription on June 6 and close on June 8. The company's shares will likely get listed on the exchanges on June 16.
Here are 10 things to know about the issue

1) Company Overview
IKIO Lighting is an Indian manufacturer of light-emitting diode (LED) lighting solutions. The company is primarily an original design.
manufacturer and supplies products to customers, who then further distribute these products under their own brands. The company's equipment and systems are used in various industries and products, including residential, industrial, and commercial lighting.

2) Industry Overview
The global electronics manufacturing services market is traditionally composed of companies that manufacture electronic products, predominantly assembling components on printed circuit boards (PCBs) and box builds for major brands. The EMS market in India was established more than five decades ago to execute manufacturing designs from government, defence, and research institutions. By the end of the 1990s and early 2000s, several brands having their own manufacturing facilities sold their assembly plants to the EMS players, aggressively striving for market share.

3) Issue Size
The IPO comprises a fresh equity issue of up to Rs 350 crore and an offer for sale (OFS) of up to 90 lakh shares.

4) Selling Shareholders
Under the OFS, Promoters Hardeep Singh will offload 60 lakh shares and Surmeet Kaur will sell about 30 lakh shares.

5) Price Band
The Noida-based company has fixed a price band of Rs 270-285 per equity share. Investors can bid for a minimum of 52 shares in one lot and multiples thereafter. At the upper end of the price band, the company plans to raise about Rs 607 crore.

6) Financial Performance
For the nine months ended December 2022, the company has clocked revenues of Rs 243 crore and a net profit of Rs 34.5 crore. During FY22, revenue from operations rose 38% to Rs 221 crore, while profit after tax stood at Rs 28 crore.

7) Objects of the Offer
The net proceeds from the public offer will be used to repay borrowings, invest in its subsidiary IKIO Solutions for setting up a new facility in Noida, and other general corporate purposes.

8) Booking running lead managers
Motilal Oswal Investment Advisors is acting as the book-running lead manager to the issue, while KFin Technologies is the registrar.

9) Issue Structure
About 50% of the offer is reserved for qualified institutional buyers (QIB), 35% of the issue is set aside for retail investors and 15% for non-institutional investors.

10) GMP
According to market sources, the company's shares are commanding a premium of Rs 50 in the unlisted market.