At 15:09 IST on Day 1, IKIO Lighting Ltd’s initial public offering (IPO) has been subscribed 1.02 times. Subscriptions for the public edition, which began accepting orders on June 6th, will end on June 8th. Non-Institutional Investors (NIIs) showed strong interest in the offering on the first day of subscription, subscribing 1.60 times the amount originally offered.
The amount intended for retail investors was oversubscribed by 1.18 times, while the portion for eligible institutional purchasers was oversubscribed by 29%. At 15:09 IST, the BSE reported that 1,55,35,624 shares had been bid on, compared to 1,52,24,074 available shares.
Qualified institutional buyers (QIBs) only showed interest in 12,11,600 shares out of a total of 42,42,592. Of the 76,87,037 shares put up for sale to individual investors, 71,29,668 were purchased. Out of the 32,94,445 shares available to non-institutional investors, 52,70,668 were bid on. No subscription was made to the workers’ share.
An OFS of up to 90 lakh shares by the founders and a new issue of 350 crores bring the total value of the IKIO Lighting IPO to 607 crores. The IPO pricing range is between 270 and 285 yen. The OFS will include the participation of the company’s promoters, Hardeep Singh and Sumeet Kaur, who will each sell 60,000 and 30,000 equity shares, respectively.
Anchor investors have provided IKIO Lighting with 182 crores as of June 5. At an issue price of 285.00 per share, the business issued 63.84 lakh equity shares to a total of 16 funds, as reported on the BSE.
Because of its sustainable business strategy and competitive pricing, the majority of brokerages have given the IKIO Lighting IPO a ‘Subscribe’ grade for the long term.
Investors in the IPO, says Mehta Equities, will be able to put their money into one of the fastest-growing original design manufacturer (ODM), electronics manufacturing service provider (EMS) companies that are poised to benefit from the positive trends in the LED lighting market, which have been fueled in part by government policies aimed at conserving energy and protecting the environment.
According to the issue’s valuation assessment, at the high end of the price range (285–), the market cap is being sought at 2203 crore. Compared to the average PE of around 55 times in the industry, IKIO’s asking price of 32 times on the basis of proforma consolidated earnings and 47 times on the basis of consolidated restated numbers seems reasonably priced.
We thus advise investors to ‘Subscribe’ to the IKIO Lighting IPO offer with a long-term view, taking into account the company and industry development rationales. With market sentiments improving, the brokerage advised authorized clients to cash in their gains if the listing price increased by more than 25%.
Because of its sustainable business strategy and competitive pricing, the majority of brokerages have given the IKIO Lighting IPO a ‘Subscribe’ grade for the long term.
Investors in the IPO, says Mehta Equities, will be able to put their money into one of the fastest-growing original design manufacturer (ODM), electronics manufacturing service provider (EMS) companies that is poised to benefit from the positive trends in the LED lighting market, which have been fueled in part by government policies aimed at conserving energy and protecting the environment.
According to the issue’s valuation assessment, at the high end of the price range (285–), the market cap is being sought at 2203 crore. Compared to the average PE of around 55 times in the industry, IKIO’s asking price of 32 times on the basis of proforma consolidated earnings and 47 times on the basis of consolidated restated numbers seems reasonably priced.
It thus advises investors to ‘Subscribe’ to the IKIO Lighting IPO offer with a long-term view, taking into account the company and industry development rationales. With market sentiments improving, the brokerage advised authorized clients to cash in their gains if the listing price increased by more than 25%.
