Know the Price, GMP, Reviews, and Other Details Before Investing in the IKIO Lighting IPO on Day 1

Today, subscriptions for the initial public offering (IPO) of Ikio Lighting, a maker of LED lighting products, open. Three days will pass before it closes on Thursday. The initial public offering (IPO) consists of an offer for sale (OFS) of up to 90 lakh shares and a new issuance of equity shares valued up to Rs 350 crore.

The following are the most important facts of the IKIO Lighting IPO:

IPO Issue Price Band for IKIO Lighting:

Investors may bid for a minimum of 52 shares in one lot and additional shares in multiples of 52 after that. The Noida-based business has set a price range of Rs 270-285 per equity share.

IPO Issue Size for IKIO Lighting:

A new issuance of equity shares worth up to 350 crore and a promoter offer-for-sale (OFS) of up to 90 lakh equity shares equal the IKIO Lighting IPO’s total issue size of 607 crore.

IPO Lot Size for IKIO Lighting:

The minimum investment for regular investors in the IKIO Lighting IPO is 14,820 due to the 52-share lot size. Up to 13 lots are open to retail investors.

Basis of Allotment for the IKIO Lighting IPO:

On June 13, the basis for IPO share allocation will be determined, and on June 14, refunds will begin. On June 15, qualifying investors’ demat accounts will get credit for the IPO shares.

Date of IKIO Lighting’s IPO listing:

The Noida-based business is anticipated to float on stock exchanges on June 16 and join public competitors Elin Electronics, Dixon Technologies, Amber Enterprises, and Syrma SGS.

IKIO Lighting IPO The issue’s purpose:

The firm plans to use the money raised from the new issue to pay off debt, invest in its wholly-owned subsidiary IKIO Solutions, and for other general business needs.

IPO Registrar for IKIO Lighting:

The issue’s registrar is Kfin Technologies.

Lead managers for the IKIO Lighting IPO:

The IKIO Lighting IPO’s only book-running lead manager is Motilal Oswal Investment Advisors.

Today’s IKIO Lighting IPO GMP:

Ikio Lighting shares enjoyed a premium of Rs 90 per share in grey markets, which translates to an anticipated listing price of Rs 375 on the top price band, according to IPO watch.

IPO reviews for IKIO Lighting:

Anand Rathi analysts believe that despite operating on a smaller base than its competitors, which primarily serve the needs of leading brands in the mass market, the company’s ability to provide end-to-end solutions and its backward-integrated manufacturing have led to a strong business model with healthy RoEs. They said that in the higher price range, the company trades at 54 times the EPS of Rs. 5.3 for the 9MFY23.

According to Choice Equity analysts, the company’s competitors in the EMS industry do not run their businesses similarly to it and are only taken into account when comparing valuations. They said that Ikio is asking for a P/E multiple of 43.6x (to its restated FY22 EPS of Rs. 6.5), which is lower than the peer average of 94.6x. The requested P/E of 32.7x, based on FY23E earnings, is less than the peer group’s current trailing 12-month P/E multiple of 43.2x.