IKIO Lighting IPO grey market premium stays firm after the strong QIB, NII bidding

Grey market premium (GMP) of IKIO Lighting continued to remain firm amid the volatility in the broader markets, thanks to a stellar subscription to the initial public offering (IPO) of the company, which concluded on Thursday with an overall subscription of 66.30 times.

The portion for qualified institutional bidders was booked a whopping 163.68 times, while the non-institutional investors' category was subscribed 63.35 per cent. The quota reserved for retail investors was subscribed 13.86 times on the final day, according to the data from BSE.

IKIO Lighting is commanding a premium of Rs 118-120 per equity share in the grey market, suggesting an upside of more than 40 per cent over the upper limit of the price band of the issue. The GMP was Rs 125-130 on the final day of the bidding. The premium in the unofficial market is marginally corrected, considering the volatility in the broader benchmarks.

According to the analysts tracking the grey market, robust subscription levels, reasonable valuations, bullish market sentiments and the recent upbeat listing of Mankind Pharma are supporting its premium.

Abhay Doshi, Co-founder at UnlistedArena said that IKIO Lighting has seen strong bidding at Dalal Street which is boosting the prospects of its strong listing. If the broader market sentiments continue to remain firm, IKIO may reward investors with a strong listing pop.

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"IKIO kept the valuations reasonable, at least inexpensive, which attracted the investors to the primary markets. Also, the recent strong listing of Mankind Pharma suggests that there are still hopes in this space if the companies offer something on the table to the investors," he said.

The Rs 607 crore IPO of IKIO Lighting was sold in the price range of Rs 270-285 apiece between June 6 (Tuesday) to June 8 (Thursday), which received bids for more than 100 crore equity shares against a net offer of 1.52 crore equity shares, considering the allotment the anchor investors.

IKIO Lighting mobilized Rs 181.95 crore by allocation of 63.84 lakh equity shares to 16 anchor investors at a price of Rs 285 per share, the upper price band, the company said in a circular with BSE.

Incorporated in 2016, the Noida-based IKIO Lighting manufactures light-emitting diode (LED) lighting solutions. The company is primarily an original design manufacturer (ODM). The company's LED lighting offerings focus on the premium segment.

With a focus on sustainability, premium offerings, and a strong financial track record, IKIO Lighting is well-positioned to capitalize on the growing demand for energy-efficient lighting solutions, said Krishna Raghavan, Founder at Unlistedkart.

"Investors seeking long-term prospects in the lighting sector should consider subscribing to the IKIO Lighting IPO, as it offers the potential for substantial returns while contributing to a greener and more sustainable future," he said.

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