Noida-based LED IKIO Lighting files DRHP with SEBI to raise ₹350 crore

• The IPO consists of a fresh issue of ₹350 crore and an offer for sale of upto 7.5 million shares by shareholders and promoters.
• The proceeds from the IKIO Lighting IPO will be used to repay debt worth ₹50 crore. As of August 2022, the company’s total outstanding borrowings amounted to ₹70 crore.
• It is looking to open a new facility at Noida, Uttar Pradesh.

IKIO Lighting, which is a provider of light-emitting diode (LED) lighting solutions, has filed draft papers with the Securities Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The company intends to raise as much as ₹350 crore, via a fresh issue and an offer for sale.

The proceeds from the IPO will be used to repay debt worth ₹50 crore. As of August 2022, the company’s total outstanding borrowings amounted to ₹70 crore.

Further, it is looking to open a new facility at Noida, Uttar Pradesh by investing IPO proceeds worth ₹236 crore via its subsidiary IKIO Solutions.

IKIO Lighting has four facilities with one in the SIDCUL Haridwar industrial park in Uttarakhand and three in Noida. As of March 2022, it had an annual installed capacity to manufacture 20.31 million LED light pieces.

The company had witnessed a partial shutdown of its units during lockdown. “Due to the nationwide lockdown, we were required to shut down our manufacturing operations from March 25, 2020 to May 3, 2020. Any future restrictions on our workforce’s access to any of our manufacturing facilities and the health and availability of our workforce could limit our ability to meet customer orders and have a material adverse effect on our business, results of operations and financial condition,” said the company in DRHP.

In the past three fiscal years, it provided products to over 900 domestic and six international customers. Philips Electronics is one of its largest customers.

The company is in negotiations with some of its existing customers to supply their LED home lighting products to their international supply chain.

Along with its improving profitability in the last three years, the company’s EBITDA margin has also improved over time. It was at 23.3% in FY22; 22.4% in FY21 and 16.94% in FY20.


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