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IKIO Lighting Limited, leading manufacturer of Light Emitting Diode (LED) Lighting in India, has garnered Rs 181.94 crore from 14 anchor investors ahead of its initial public offering that opens for public subscription on Tuesday, June 06, 2023. The company informed the bourses that it allocated 63,84,209 equity shares at Rs. 285 per share on Monday, June 05, 2023, to anchor investors.

Foreign Investors and Domestic Institutions who participated in the anchor were HDFC Mutual Fund, ICICI Prudential Mutual Fund, Goldman Sachs Asset Management, Malabar India Fund, Mirae Asset Global, Rohdea Master Fund, Motilal Oswal Select Opportunities Fund, Cohesion MK Best Ideas, Bengal Finance and Investment, amongst others.

Out of the total allocation of 63,84,209 equity shares to the anchor investors, 21,38,409 equity shares were allocated to 3 domestic mutual funds through a total of 5 schemes amounting to about Rs 61 crore i.e., 33.50% of the Total Anchor Book Size.

The company is primarily an Original Design Manufacturer (ODM) and design, develop, manufacture and supply products to customers who then further distribute these products under their own brands, and they work with their customers to develop, manufacture and supply products that are designed by their customers. Products are categorized as LED lighting, refrigeration lights, ABS (acrylonitrile butadiene styrene) piping and other products. Equipment and systems produced by the company are used in various industries, including residential, industrial, and commercial lighting.

In Fiscal 2022, Signify Innovations India Limited, (formerly known as Philips Electronics India Limited) was the largest customer of the IKIO Lighting was, with 50% market share in the decorative lighting category (including LED spotlights, LED downlights and cove lights) and a 10% market share in true-blue decorative lighting segment (including chandeliers, wall lights, pendants, outdoor lights) according to Frost & Sullivan Report. The company also has a diversified customer base across industry sectors and geographies which includes Western Refrigeration Private Limited, Panasonic Life Solutions India Private Limited and Novateur Electrical & Digital Systems Private Limited.

IKIO Lighting Limited’s revenue from operations on a proforma consolidated basis grew 55.47% from ?213.45 crore in Fiscal 2021 to ?331.84 crore in Fiscal 2022 and profit after tax has increased 75.37% to ?50.52 crore in Fiscal 2022, from ?28.81 crore in Fiscal 2021. For the nine months ended December 31, 2022, on a proforma consolidated basis, revenue from operations stood at Rs 328.63 crore and profit after tax stood at Rs 51.35 crore.

Motilal Oswal Investment Advisors Limited is the sole book running lead manager and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on the Main Board of BSE and NSE.

IPO Details

The issue with a face value of Rs 10 per equity share comprising a fresh issue aggregating up to Rs 350 crore, and an offer for sale of up to 9,000,000 equity shares by existing shareholders.

The Offer for Sale comprises up to 6,000,000 equity shares by Hardeep Singh, and up to 3,000,000 by Surmeet Kaur (“Selling Shareholders”).

The Company is proposing to open its initial public offering of Equity Shares (the “Offer”) on Tuesday, June 06, 2023, and closes on Thursday, June 08, 2023. The price band for the Offer has been determined at Rs 270 – Rs 285 per equity share.

The IPO will fetch Rs 606.50 crore at the upper end of the price band.

Investors can bid for a minimum of 52 equity shares and in multiples of 52 equity shares thereafter.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.