IKIO Lighting Listing Price: Shares of the LED lighting solutions provider IKIO Lighting made a stellar debut on the stock exchanges NSE and BSE on Friday i.e. June 16. On BSE, IKIO Lighting is listed at Rs 391 apiece against the issue price of Rs 270-285. The stock started its trading journey at Rs 392.5 apiece on NSE — a 37.7 per cent premium to the issue price.
IKIO Lighting raised about Rs 607 crore from its initial stake sale, which was opened for bidding between June 6 and June 8. The company had set a price band of Rs 270-285 apiece for the issue with a lot size of 52 equity shares. The issue garnered a strong response from the investors during the three-day bidding process.
The IPO was overall subscribed 66.30 times, with the portion for qualified institutional bidders (QIB) getting 163.68 times subscription; the category for non-institutional investors (NIIs) was subscribed 63.35 times and the quota reserved for retail investors was booked 13.86 times.
“Better-than-expected response to its offer across investor categories was mainly due to its business model of original design manufacturing (ODM) followed by higher operating margins compare to peers and reasonable discounted valuations at the time of IPO when compared to listed peers,” said Prashanth Tapse, VP-Research, Mehta Equities.
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.
Motilal Oswal Investment and Advisors acted as the book running lead manager to the issue, while Kfin Technologies was the registrar to the issue.
A day before the issue opened for subscription, IKIO Lighting mobilised 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 statement.
The net proceeds from the public offer will be used to repay borrowings, investment in its subsidiary IKIO Solutions for setting up a new facility in Noida and other general corporate purposes.
Should you Buy, Sell or Hold?
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd., said: “IKIO Lighting Ltd. made its strong debut in the market at a listing price of Rs. 392. The company’s issue price at the upper band was Rs 285, so it is around 37 per cent of the gain for investors which is even more than expected. considering its strong focus on R&D and backward integration, its well-established relationship with clients, and its consistent financial performance we still have a positive view on this thus we will suggest investors hold this share for a longer period by keeping a stop loss 10 per cent below its listing price.”
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