IKIO Lighting IPO price band fixed at Rs 270-285; issue to open on June 6

The initial public offering of IKIO Lighting will kick off for subscription on Tuesday, June 6, as the company looks to raise Rs 607 crore as its primary offering. The company has fixed Rs 270-285 apiece as its price band for the issue, which can be subscribed till Thursday, June 8.

Incorporated in 2016, IKIO Lighting manufactures light-emitting diode (LED) lighting solutions. The company is primarily an Original Design Manufacturer (ODM) and its product portfolio can be categorized as LED lighting, refrigeration lights, ABS (acrylonitrile butadiene styrene) piping and other products.

The issue consists of the sale of fresh equity worth Rs 350 crore, while promoters of the company will offload 90,00,000 equity shares via the offer for sale (OFS) route. Hardeep Singh will sell 60,00,000 equity shares, while Surmeet Kaur will cut her stake by 30,00,000 equity shares in the OFS.

Investors can make a bid for a minimum of 52 equity shares and its multiples thereafter. Anchor book for the issue will open for subscription on Monday, June 5. The company filed its draft papers for the issue in December 2022.

The net proceeds from the public offer will be used towards repayment of certain borrowings, investments in its subsidiary IKIO Solutions for setting up a new facility in Noida, and other general corporate purposes.

IKIO Lighting designs, develops, manufactures and supplies products to customers, who then distribute the products under their own brands. They also work with the customers to develop, manufacture and supply products as designed by the customers. The company's LED lighting offerings focus on the premium segment.

The company has reserved 50 per cent of the offer for qualified institutional buyers (QIB), while 15 per cent of the shares will be allocated to non-institutional investors. The remaining 35 per cent of the issue is set aside for retail investors.

For the period ended on December 31, 2023, the company reported a net profit of Rs 51.35 crore with total revenue of Rs 332.79 crore. Its net profit stood at Rs 50.52 crore, with total revenue of Rs 334 crore for the financial year 2021.22.

Motilal Oswal Investment and Advisors are book-running lead managers to the issue, while Kfin Technologies is the registrar to the issue. The stock will be listed at both BSE and NSE.

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