IPO listed on 16 Jun'23
IKIO Lighting Ltd
Minimum Investment
₹ 14,820 / 52 shares
Grey market premium
₹ 103 (36% premium)
Issue price
₹ 285
Listing price
₹ 392
Listing day %
42%
Listing on
June 16, 2023
Our Verdict:
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- IKIO has shown steady revenue and profit growth through its comprehensive solutions and in-house manufacturing. It boasts a robust business model with healthy return ratios, even though it operates on a smaller scale than its peers, servicing leading brands
- With a P/E ratio of 47.8x 9MFY23 annualised EPS, the IPO appears to be fairly valued compared to its peers. Investors may subscribe with a long-term perspective
About the company
Founded in
21 Mar'16
Managing director
Hardeep Singh
- A leading manufacturer of light-emitting diode (LED) lighting solutions in India that offers products in 4 categories: (i) LED lighting; (ii) Refrigeration lights; (iii) ABS piping; and (iv) Allied products
- 4 manufacturing facilities in India - As on December 31, 2022, the total annual installed capacity of LED Lights was 2.06 crore pieces and Fan and Switches was 2.18 crore pieces
STRENGTHS
- High customer retention: In FY22, IKIO derived ~94% of its consolidated revenue from operations from repeat customers
- Company’s largest customer, Signify-Philips, had a 50% market share in India’s functional decorative lighting category and a 10% market share in the true-blue decorative lighting segment in FY22
- Strong and consistent financial performance: IKIO saw a 25% CAGR in consolidated revenue over FY20-22, and 9MFY23 revenue reached Rs 2.4 bn, up from Rs 2.2 bn in the previous year
- PAT grew at a 32% CAGR from FY20-22, hitting Rs 346 mn in 9MFY23, up from Rs 280 mn a year ago
- PAT margins also improved, rising from 11.36% in FY20 to 14.22% in 9MFY23
RISK FACTORS
- Declining trend in RoNW: Return on Net worth dropped from 57.8% in FY20 to 36.6% in FY22, and was at 27.3% in 9MFY23
- Revenue concentration risk: IKIO's main customer is Signify-Philips, from whom it derived ~70% of its revenue in 9MFY23. Any significant market loss for the latter could severely impact IKIO's intake
- Besides India, IKIO is expanding its customer base in the US. However, potential US recession could dampen demand and hinder growth
Issue details
Issue type
Mainstream
Issue size
₹ 607 crore
Fresh Issue
₹ 350 crore
OFS
₹ 257 crore
Price range
₹ 270 - 285
Lot size
52 shares
Issue Objective
Net proceeds of the issue (fresh issue) will be utilised towards:
- Repayment/ prepayment of certain borrowings availed by the company and its subsidiaries on a consolidated basis
- Investment in wholly-owned subsidiary, IKIO Solutions Pvt Ltd, for setting up a new facility at Noida, Uttar Pradesh
- General corporate purposes
Dates
Bidding open
6 Jun'23
Bidding close
8 Jun'23
Allotment date
13 Jun'23
Refund date
14 Jun'23
Listing
16 Jun'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.