IKIO Lighting IPO: Issue subscribed 11.46 times so far on last day of bidding process

The Rs 607 crore initial public offering (IPO) of IKIO Lighting has received a good response from investors. The issue was subscribed 11.46 times so far on Day 3 on strong demand from non-institutional investors.

The issue attracted bids for 17,44,94,528 shares or 11.46 times against the issue size of 1,52,24,074 shares. The quota reserved for retail individual investors (RIIs) was subscribed 8.91 times, qualified institutional buyers by 2.89 times and non-institutional investors (NIIS) by 28.46 times.

The grey market premium (GMP) of the company has been on an upward trend for the past few days. The company's shares are commanding a premium of Rs 118 in the unlisted market, with listing gains looking more and more likely.

Aditiya Gaggar, Director of Progressive Shares said, "Overall we feel although the company is a part of an established market, presence through monopoly products and long-standing customer relations should augur well for it going forward. One can invest in the IPO as per own discretion from a long-term perspective as the business growth unfolds."

The issue, which closes today, comprises a fresh equity issue of up to Rs 350 crore and an offer for sale (OFS) of up to 90 lakh shares.

The company has set a price band of Rs 270-285 per equity share and investors can bid for a minimum of 52 shares in one lot and multiples thereafter. At the upper end, the company plans to raise about Rs 607 crore.

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.

IKIO Lighting designs, develops, manufactures and supplies products to customers who then further distribute these products under their own brands.

The company is largely into manufacturing premium products. Its products are categorized as LED lighting, refrigeration lights, ABS (acrylonitrile butadiene styrene) piping and others.

Ahead of the issue opening, IKIO Lighting has garnered Rs 182 crore from 14 anchor investors. The company has allocated 63.84 lakh equity shares at Rs 285 per share on June 05 to anchor investors.

Motilal Oswal Investment Advisors is the sole book-running lead manager and KFin Technologies is the registrar of the offer.

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