Ikio Lighting shines bright on debut, lists at a 37% premium to issue price

• IKIO Lighting listed on the bourses at ₹391 – that’s a premium of ₹106 to the issue price, and in line with what the grey market was expecting.
  
• The Delhi-based company’s IPO was subscribed 67 times, and it intends to use the funds from the IPO to repay debt, invest in a subsidiary and for general corporate purposes.
  
• The company is into automotive lighting, LED lighting, daytime running light and much more.
  

The stock of IKIO Lighting made its debut on the bourses on Friday at a 37% premium. Its shares listed at ₹391 – that’s ₹106 higher than its initial public offering (IPO) price of ₹285.

As of 9:49 am, the company’s market cap stood at ₹3,021 crore, as per data on BSE. As per grey market indications, the company’s listing was expected to be stellar, with an over ₹100 premium. GMP is the premium at which unlisted company shares are traded in an unofficial market before they are listed on the stock exchanges.

“Considering the overwhelming response from all types of investors and oversubscribed by 66.30 times, we are expecting a healthy 25-30% listing performance backed by a market mood. Better- than-expected response to its offer across investor categories was mainly due to its business model of ODM (original design manufacturer) followed by higher operating margins compared to peers and reasonable discounted valuations at the time of IPO when compared to listed peers,” said Prashanth Tapse, senior vice president (research), Mehta Equities.

The ₹607-crore IPO opened on June 6 and closed on June 8. The Delhi-based company’s IPO was subscribed 67 times, as it received bids for 101.9 crore equity shares against 1.52 crore shares on offer.

While the qualified institutional buyer portion was subscribed 163 times, the non-institutional investors portion was subscribed 65.38 times. The retail portion also witnessed good participation and was subscribed 14.3 times.

The IPO had comprised a fresh offer of shares as well as an offer-for-sale by the promoters. The company plans to use the IPO proceeds to repay debt, invest in a subsidiary and for general corporate purposes.

The company is into automotive lighting, LED lighting, daytime running lights and more.