Noida-based IKIO Lighting is an Indian manufacturer of light-emitting diode (LED) lighting solutions. It is an original design manufacturer (ODM) and designs, develops, manufactures and supplies products.
According to the DRHP, the issue consists of issuance of fresh equity shares aggregating to Rs 350 crore and an offer for sale (OFS) of up to 7.5 crore equity shares by the promoters of the company.
The promoters participating in the OFS include Hardeep Singh and Surmeet Kaur who will sell 6 crore and 1.5 crore shares, respectively.
The company, in consultation with merchant bankers of the issue, may consider a preferential issue or any other method aggregating up to Rs 50 crore. If such placement is completed, the fresh issue size will be reduced.
The company has reserved 50 per cent of shares for qualified institutional buyers (QIBs), whereas 15 per cent of shares are reserved for non-institutional buyers (NIIs). Retail bidders will get the remaining 35 per cent shares.
The net proceeds from the fresh issuance will be utilized towards repayment of certain borrowings availed by the company and its subsidiaries, investment in the company’s wholly-owned subsidiary and setting up a new facility at Noida.
The company’s LED lighting offerings focus on the premium segment and include lighting, fittings, fixtures, accessories and components among other solutions.
Its customer is Signify Innovations India, erstwhile Philips Electronics India, which according to Frost & Sullivan in Fiscal 2022 had a 50 per cent market share in India’s functional decorative lighting category.
The company reported a revenue of Rs 331.84 in the fiscal year 2021-22, which is 55 per cent higher than the revenue of Rs 213.45 crore in the previous year. The company reported a profit after tax of Rs 50.52, 75 per cent higher in FY22.
Investment Advisors is the sole book-running lead manager and KFin Technologies is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
