The initial public offering of IKIO Lighting has received bids for 2.36 crore equity shares against an offer size of 1.52 crore, subscribing 1.55 times on debut today, June 6.
The portion set aside for retail investors has subscribed 1.64 times, while high net-worth individuals have bid for 97.69 lakh equity shares against their portion of 32.94 lakh shares.
Qualified institutional buyers (QIBs) have bought 12.81 lakh shares of IKIO so far, against the allotted quota of 42.42 lakh shares.
After fund raising through anchor book, the part of QIBs, the offer size has been reduced to 1.52 crore shares, from 2.12 crore shares earlier. The company has mobilised Rs 181.95 crore from 16 anchor investors, including Societe Generale, Quant Mutual Fund, Mirae Asset India, Goldman Sachs, and HDFC Mutual Fund.
The LED lighting solutions provider aims to raise Rs 606.5 crore through public issue which consists of a fresh issue of Rs 350 crore, and an offer-for-sale of 90 lakh shares by promoters. It is 100 percent owned by promoters.
The price band for the offer is Rs 270-285 per share.
IKIO will use the issue proceeds for repaying debts, and investment in wholly owned subsidiary IKIO Solutions to set up new facility in Uttar Pradesh.
Also read: IKIO Lighting IPO | 10 things to know before you subscribe to the offer
Its product range comprises LED lighting solutions, electrical components for commercial refrigerators, accessories for recreation vehicles (ABS pipes, solar panels, charge controllers, switches, interior lights, exterior rights), and fan regulators and components for MCB switchgear.
According to Frost & Sullivan, the Indian LED market is expected to clock a 12.2 percent CAGR over FY22-FY26, from an estimated Rs 21,700 crore to a projected Rs 33,800 crore. The market for home and decorative lighting was Rs 3,500 crore in FY22 and could rise to Rs 6,000 crore by FY26, a 14 percent CAGR (versus 12 percent for the overall LED market).
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