IKIO Lighting IPO: Ahead of subscription on Tuesday, GMP surges sharply; 10 key points here

Indian manufacturer of light emitting diode (LED) lighting solutions, IKIO Lighting's grey market premium (GMP) on Monday zoomed sharply ahead of the opening of its subscriptions from June 6th to 8th. The company plans to raise about ₹607 crore through the public offer. IKIO is focused on sustainability and providing low-energy LED products to help India meet its sustainability goal.

On Monday, IKIO's IPO was available for subscriptions for anchor investors. On this day, across market observers, the GMP price of the public offer was from ₹90 per share to ₹95 per share.

As per the 5Paisa website, the GMP on June 5, stood at ₹95 per share for IKIO compared to ₹73 per share on the previous day. It needs to be noted that GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO.

Meanwhile, the GMP price was at ₹90 as against ₹70 per share on the previous day, as per IPO Watch, According to TopShareBrokers website, the GMP was at ₹95 on Monday.

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Here are 10 key highlights of the IPO:

- The IPO will open on June 6th and will close on June 8, 2023.

- IKIO garnered ₹182 crore from anchor investors on June 5th. Data from BSE showed that IKIO allotted 63.84 lakh equity shares to a total of 16 funds at an issue price of ₹285 apiece.

- Under the IPO, the number of equity shares offered for subscription is to the tune of 1,52,24,074.

- Of the total, 50% of the IPO size is applicable to qualified institutional buyers (QIBs), 15% will be allotted to non-institutional investors, and the remaining 35% will be reserved for retail individual investors (RIIs).

- The price band for the IPO is fixed at the lower band of ₹270 per share and upper band of ₹285 per share. The face value of equity shares is ₹10 each.

- The IPO is a mixture of a fresh issue worth ₹350 crore and an offer for sale (OFS) of up to 90 lakh shares.

- Promoters Hardeep Singh and Sumeet Kaur will participate in the OFS by offloading 60 lakh and 30 lakh equity shares respectively.

- Market lot size is 52 equity shares. The maximum bid quantity is 1,52,24,040 equity shares for qualified institutional buyers and the maximum bid quantity is 1,09,81,464 equity shares for non-institutional investors. The minimum bid quantity is 52 equity shares.

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- Motilal Oswal Investment Advisors is the book-running lead manager of the IPO. KFin Technologies is the registrar of the issue.

- The proceeds from the fresh issue will be used for repayment of full or part of certain borrowings; investment in wholly-owned subsidiary IKIO Solutions for setting up a new facility at Noida, Uttar Pradesh; and general corporate purposes. Meanwhile, proceeds from OFS will go to selling shareholders.

IKIO is primarily an original design manufacturer (“ODM”) and design, develop, manufacture, and supplies products to customers who then further distribute these products under their own brands. The company's products are categorized as (i) LED lighting; (ii) refrigeration lights; (iii) ABS (acrylonitrile butadiene styrene) piping; and (iv) other products. Our LED lighting offerings focus on the premium segment and include lighting, fittings, fixtures, accessories, and components.