The stock got listed at Rs 391 on BSE, up 37.19%, as against the offer price. Ahead of the listing, the shares were commanding a premium of around Rs 99 in the unlisted market.
The net proceeds from the public offer will be used to repay borrowings, invest in its subsidiary IKIO Solutions for setting up a new facility in Noida and other general corporate purposes.
The Rs 607 crore IPO, with a fresh issue of Rs 350 crore and an offer of sale (OFS) of 90 lakh equity shares, had received tremendous a response from investors, making it one of the most successful primary market issues of the year.
The issue was subscribed by a whopping 67 times. While the qualified institutional buyers (QIBs) category was subscribed 163.58 times, the portion for non-institutional investors received 63.35 times bids and the retail investors’ quota got subscribed by 13.86 times.
“Better-than-expected response to its offer across investor categories was mainly due to its business model of original design manufacturing (ODM) followed by higher operating margins compare to peers and reasonable discounted valuations at the time of IPO when compared to listed peers,” said Prashanth Tapse, VP-Research, Mehta Equities.
IKIO Lighting designs, develops, manufactures and supplies products to customers who then further distribute these products under their own brands.The company’s consolidated revenue grew at a CAGR of 23% over FY20-22 led by LED lighting segment, which grew at a CAGR of 24% during the same period.
Revenue from operations on a proforma consolidated basis rose 55% year-on-year to Rs 331 crore in FY22 and profit after tax has increased 75% year-on-year to Rs 50.5 crore in the said period.
Motilal Oswal Investment Advisors acted as the sole book-running lead manager and KFin Technologies was the registrar to the offer.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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