Indian LED lighting solutions provider, IKIO Lighting, has successfully mobilized ₹182 crore from anchor investors ahead of its upcoming initial public offering (IPO). The company allotted 63.84 lakh equity shares to 16 funds at a price of ₹285 per share, signaling strong investor interest in the IPO.
Notable anchor investors include Societe Generale, Citigroup Global Markets Mauritius, Goldman Sachs, Malabar India Fund, Quant Mutual Fund (MF), HDFC MF, and ICICI Prudential MF. IKIO Lighting’s IPO, with a price band of ₹270-285 per share, will be open for public subscription from June 6th to 8th.
The IPO comprises a fresh issue of equity shares worth up to ₹350 crore and an offer-for-sale (OFS) of up to 90 lakh equity shares by promoters Hardeep Singh and Surmeet Kaur. At the upper end of the price band, the IPO is expected to raise ₹606.5 crore.
The proceeds from the fresh issuance, amounting to ₹50 crore, will be utilized for debt payment, while ₹212.31 crore will be invested in IKIO Lighting’s wholly-owned subsidiary, IKIO Solutions, for establishing a new facility in Noida, Uttar Pradesh. The remaining funds will be allocated for general corporate purposes.
The IPO allocation reserves 50% of the issue size for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. The minimum bid quantity is set at 52 equity shares, with multiples of 52 equity shares thereafter.
IKIO Lighting, primarily an original design manufacturer (ODM), focuses on designing, developing, manufacturing, and supplying LED lighting products to customers who further distribute them under their own brands. The company aims to provide sustainable and energy-efficient LED solutions to support India’s sustainability goals.
The successful fundraising from anchor investors, coupled with the positive response in the grey market with the grey market premium (GMP) surging, indicates a strong market demand for IKIO Lighting’s IPO. The IPO’s opening is anticipated with high expectations as the company seeks to expand its operations and contribute to India’s growing LED lighting market.
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