Noida-based company IKIO Lighting has officially announced the dates for its initial public offering (IPO). The IPO is set to kick off on June 6 and will run for three days, concluding on June 8. Prior to the public subscription, there will be a bidding opportunity for anchor investors on June 5, as mentioned in the red herring prospectus (RHP). Let us look at the IKIO Lightning IPO’s details.
Components of the IPO: Fresh Issue and Offer-for-Sale (OFS)
IKIO Lighting’s IPO consists of two main components.
Firstly, there will be a fresh issue of equity shares, amounting to a value of up to Rs 350 crore. Additionally, there will be an offer-for-sale (OFS) of up to 90 lakh equity shares provided by the company’s promoters, Hardeep Singh and Surmeet Kaur.
The Utilisation of Funds for Debt Payment and Expansion
The funds generated from the fresh issue, which accounts for Rs 50 crore, will be primarily used for debt payment. Furthermore, a sum of Rs 212.31 crore will be allocated to IKIO Lighting’s wholly-owned subsidiary, IKIO Solutions. These funds will be employed for setting up a new facility in Noida, Uttar Pradesh, and for general corporate purposes.
IKIO Lighting: Leading Manufacturer of LED Lighting Solutions
IKIO Lighting Ltd is a prominent manufacturer of LED lighting solutions. The company operates as an original design manufacturer (ODM), involved in the entire process of designing, developing, manufacturing, and supplying LED products. These products are then distributed by customers under their respective brands.
Manufacturing Facilities and IPO Management
With manufacturing facilities located in SIDCUL Haridwar industrial park in Uttarakhand and Noida within the National Capital Region, IKIO Lighting ensures efficient production. The equity shares are proposed to be listed on both the major exchanges: BSE and NSE.
Objectives of the IPO: Repayment, Expansion, and General Corporate Purposes
The main objectives of the IKIO Lighting IPO are as follows:
- Repayment/prepayment of specific market borrowings.
- Investment in the establishment of a new facility in Noida, Uttar Pradesh, through the company’s wholly-owned subsidiary.
- Catering to general corporate purposes and requirements.
Exploring the Potential of IKIO Lightning IPO: Should You Invest?
If you are contemplating an investment in the IKIO Lighting IPO, here is a look at the company’s performance overview:
- Expanding Product Portfolio: IKIO Lighting has been actively expanding its lighting product portfolio. The company increased its product offerings from 660 in fiscal year 2020 to 936 in fiscal year 2022, representing a growth rate of 41.82%. This demonstrates the company’s commitment to innovation and adaptability to market demands, which may contribute to future revenue growth.
- Established Customer Base: Over the past three fiscal years, IKIO Lighting has successfully served 900 domestic and six international customers.
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Things to know before Investing.
Considering the above factors, investing in the IKIO Lighting IPO could be an opportunity to participate in the growth of the LED lighting market and benefit from the company’s established position, expanding product portfolio, and strong customer relationships. However, as with any IPO investment, it is crucial to conduct thorough research, evaluate your financial goals and risk tolerance, and seek advice from a financial professional before making any investment-related decisions.
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing.