Ikio Lighting IPO GMP: The IPO of Noida-based company IKIO Lighting opens for subscription from today. The gray market share price of the company, which manufactures Light Emitting Diode (LED) lighting in the country, has doubled in a single day. Let’s know all about it.
New Delhi: The initial public offering (IPO) of Noida-based company ‘IKIO Lighting Limited’, which manufactures LED Light Emitting Diode (LED) lighting, has opened today. The company has already raised Rs 181.94 crore from 14 anchor investors. The amount of confidence investors have shown in it can be gauged from the fact that its Gray Market Price (GMP) doubled in a single day. Investors can bid for this IPO till June 8.
Anchor Investors bought shares at Rs.285.
14 anchor investors bought 63,84,209 shares in IKIO Lighting Limited, according to stock market information. The company has allotted these shares at Rs 285 per share. This is the higher end of the price band. These anchor investors include HDFC Mutual Fund, ICICI Prudential Mutual Fund, Goldman Sachs Asset Management, Malabar India Fund, Mirai Asset Global, Rohdia Master Fund, Motilal Oswal Select Opportunities Fund, Cohesion M.K. Best Ideas, Bengal Finance and Investment etc.
What is the price band of this IPO?
IKIO Lighting Ltd has fixed a price band of Rs 270 to Rs 285 per scrip by Rs 10. Investors have to bid for a minimum of 52 shares in a lot. Thus retail investors have to invest a minimum of Rs 14,820 to bid for one lot. Retail investors can bid for a maximum of 13 lots.
What are the company’s products?
This Noida-based company provides solutions related to LED lights. Its products are divided into other categories including LED lighting, refrigeration lights, ABS (acrylonitrile butadiene styrene) piping. In the year 2022, Signify Innovations India Limited, (formerly known as Philips Electronics India Limited) was the company’s largest customer. Other key customers of the company include Western Refrigeration Pvt Ltd, Panasonic Life Solutions India Pvt Ltd and Innovator Electrical & Digital Systems Pvt Ltd.
What will the company do with the proceeds from the IPO?
IKIO Lighting has said it will use the proceeds from the IPO to reduce its debt, invest in its wholly-owned subsidiary IKIO Solutions and for other general corporate purposes. After the completion of the IKIO Lighting IPO bidding process, the allotment of its shares will take place on June 13. Investors who do not get shares will be refunded on June 14. On the other hand, the shares will be deposited in the demat account of the successful investors on June 15. Motilal Oswal Investment Advisors is the sole book-running lead manager of the IPO.
GMP almost doubled.
Gray market premium (GMP) of IKIO Lighting shares continues to rise. Last Friday it was running between Rs 45-50, which went up to Rs 92-94 yesterday i.e. Monday. However, the premium to gray market price is not a parameter to measure the popularity of a company’s IPO. But it gives some idea.