IKIO Lighting IPO: GMP shoots up ahead of subscription on Tuesday

The Rs 607 crore initial share sale of IKIO Lighting will open for subscription on Tuesday and close on June 8. Ahead of the IPO opening, the company's shares are commanding a premium of Rs 92-94 in the unlisted market.

The current grey market premium has almost doubled from Rs 40-45 a few days earlier, according to market sources.

However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.


The IPO comprises fresh equity issue of up to Rs 350 crore and an offer for sale (OFS) of up to 90 lakh shares. Under the OFS, Promoters Hardeep Singh will offload 60 lakh shares and Surmeet Kaur will sell about 30 lakh.

The Noida-based company has fixed a price band of Rs 270-285 per equity share. Investors can bid for a minimum of 52 shares in one lot and multiples thereafter.

At the upper IPO price band, the stock is valued at 54 times in relation to its nine-month FY23 EPS of Rs 5.3.
About 50% of the offer is reserved for qualified institutional buyers (QIB), 35% is set aside for retail investors and 15% for non-institutional investors.

The net proceeds from the public offer will be used to repay borrowings, for investment in subsidiary IKIO Solutions and for setting up a new facility in Noida, and other general corporate purposes.

IKIO Lighting is an Indian manufacturer of light emitting diode (LED) lighting solutions. The company is primarily an original design manufacturer and supplies products to customers, who then further distribute these products under their own brands.

Its equipment and systems are used in various industries and products, including residential, industrial and commercial lighting.

The company's revenue from operations on a pro forma consolidated basis grew 55% year-on-year to Rs 331 crore in fiscal 2022 and profit after tax has increased 75% year-on-year to Rs 50.5 crore in the said period.

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