June 5, 2023
IKIO Lighting Set to Launch IPO on June 6
$41 million company manufactures general lighting products in India
IKIO Lighting, an emerging LED lighting firm based in India, is set to launch its Initial Public Offering (IPO) tomorrow, June 6, prior to its scheduled listing on June 16, 2023. The company’s stock will be listed in India on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
IKIO Lighting, was founded in 2016 and has established a US presence with an office and warehouse location in Indianapolis, Indiana. The 2022 revenue of the company was approximately $41.08 million in US dollars given the current exchange rate of 1 USD to ₹ 82.7. Its products cater to a wide range of applications including industrial, commercial, multi-family residential and hospitality sectors, horticulture, and hazardous locations.
In North America, IKIO goes to market collaborating with lighting agents in various locations, although its network across the United States and Canada does not yet span coast to coast. The company cites partnerships with 19 agencies, including Luma Sales in Minnesota, SK Associates in New England and Spectrum Lighting & Controls in Wisconsin.
The IPO of IKIO Lighting, valued at ₹ 607 crore (approximately $73.36 million USD, at an exchange rate of 1 USD to ₹ 82.7), is set to begin accepting subscriptions Tuesday morning and will close on June 8. In anticipation of the IPO launch, IKIO Lighting's shares are currently garnering a premium of Rs 92-94 (approximately $1.11-$1.14 USD, at the given exchange rate) in the unlisted market.
The Initial Public Offering (IPO) comprises two primary components, according to the Draft Red Herring Prospectus (DRHP). The first component is a fresh issue of equity shares that is valued at up to Rs 350 crore (approximately $42.33 million USD, given the exchange rate of 1 USD to ₹ 82.7). The second component is an Offer-For-Sale (OFS) that includes up to 7.5 million equity shares, put forth by the promoters Hardeep Singh and Surmeet Kaur.
The company intends to allocate the net proceeds from the Initial Public Offering (IPO) towards a range of strategic objectives, according to its proposal. These include full or partial repayment or prepayment of specific borrowings leveraged by the company and its subsidiaries on a consolidated basis. The firm also plans to invest in its wholly owned subsidiary, IKIO Solutions Private Limited, with the aim of establishing a new facility in Noida, Uttar Pradesh. The remaining funds will be allocated to fulfill general corporate purposes.