IKIO Lighting IPO Subscribed 6.83 times on Day 2
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IKIO Lighting Limited a leading manufacturer of Light Emitting Diode (LED) Lighting in India has received bids of 10,40,31,096 shares against the offered 1,52,24,074 equity shares, at a price band of ?270-285, according to the data available on the stock exchanges.
Overall the issue was subscribed 6.83 times on the second day of bidding.
Non-Institutional segment was the most subscribed with 15.99 times, Retail Portion was the second most subscribed with 5.92 times, whereas, Qualified institutional buyer portion was subscribed 1.37 times. The issue kicked off for subscription on Tuesday, June 06, and will close on Thursday, June 08, 2023.
Broking houses like Anand Rathi, SBI Securities, Choice Equity Broking, Swastika Investmarts, Marwadi Financial Services, Hem Securities and Religare Broking, have given a “Subscribe” rating to the issue
The said brokerages have collectively stated that IKIO lacks a peer company with operations that are comparable to its own, hence it is compared to businesses in the EMS sector and is solely taken into account for valuation benchmarking. Signify, the industry leader in decorative lighting in India, is IKIO's biggest client. A significant decline in the former's market share could reduce the latter's uptake. Any contract manufacturer of lightings must continually onboard new clients in order to keep growing sustainably. When compared to its close counterparts, the IPO appears to be properly valued across a variety of valuation metrics.
Motilal Oswal Investment Advisors Limited is the sole book running lead manager and KFin Technologies Limited is the registrar to the offer.
