IKIO Lighting
Book Building issueMainboard₹607 Cr issue
+37.19%
Listing gain over issue price
Issue size
₹607 Cr
1 lot at cut-off
₹14,820
Lot size
52shares
Open
06 Jun 2023
Close
08 Jun 2023
Allotment
13 Jun 2023
Listing
16 Jun 2023
Listing performance
Issue price
₹285
Listed at
₹391
Listing-day close
₹403.85
Latest price
₹167.28
Close on 23 Oct 2026
Listing gain
+37.19%
Return since issue
-41.31%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 06 Jun 2023 – 08 Jun 2023
- Listing date
- 16 Jun 2023
- Face value
- ₹10 per share
- Issue price
- ₹285 per share
- Lot size
- 52 shares
- Issue type
- Book Building issue
- Total issue size
- ₹607 Cr
- Market cap at offer price
- ₹2,203 Cr
- Promoter holding
- 100.00% → 72.46% pre-issue → post-issue
- ISIN
- INE0LOJ01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Motilal Oswal Investment Advisors Ltd.
- Registered office
- 411, Arunachal Building, 19 Barakhamba Road, Connaught Place, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 63,84,209 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 52 shares per lot, in multiples, at ₹285
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 52 | ₹14,820 |
| Retail (max) | 13 | 676 | ₹1,92,660 |
| S-HNI (min) | 14 | 728 | ₹2,07,480 |
| S-HNI (max) | 67 | 3,484 | ₹9,92,940 |
| B-HNI (min) | 68 | 3,536 | ₹10,07,760 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
63,84,209
Anchor portion
₹182 Cr
at ₹285 per share
Valuation and performance
Valuation at offer price
₹285 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.90 | — |
| P/E (×) | 36.08 | — |
| Market cap | — | ₹2,203 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 36.46%
- ROCE
- 26.00%
- Debt / equity
- 1.03
- PAT margin
- 15.12%
- NAV per share
- ₹11.76
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About IKIO Lighting
IKIO Lighting Limited, incorporated in 2016 and converted to public company in 2022, is a manufacturer of light emitting diode (LED) lighting solutions focused on sustainability and low-energy products. The company operates as an original design manufacturer (ODM) and also works on original equipment manufacturer (OEM) basis, designing, developing, manufacturing and supplying products to customers who distribute them under their own brands. Products are categorized into LED lighting (91.27% of restated revenue in 9M FY2023), refrigeration lights, ABS piping, and other products. The company has four manufacturing facilities: one in SIDCUL Haridwar industrial park in Uttarakhand and three in Noida in the National Capital Region. As of February 28, 2023, the company employed 1,470 employees and 19 contract workers.
Company Analysis
from RHPIKIO Lighting Limited is an Indian manufacturer of LED lighting solutions and related products, operating as an original design manufacturer (ODM) for customers in residential, industrial, and commercial lighting sectors.
IKIO Lighting Limited, incorporated in 2016 and converted to public company in 2022, is a manufacturer of light emitting diode (LED) lighting solutions focused on sustainability and low-energy products. The company operates as an original design manufacturer (ODM) and also works on original equipment manufacturer (OEM) basis, designing, developing, manufacturing and supplying products to customers who distribute them under their own brands. Products are categorized into LED lighting (91.27% of restated revenue in 9M FY2023), refrigeration lights, ABS piping, and other products. The company has four manufacturing facilities: one in SIDCUL Haridwar industrial park in Uttarakhand and three in Noida in the National Capital Region. As of February 28, 2023, the company employed 1,470 employees and 19 contract workers.
LED lighting manufacturingElectronics manufacturing services (EMS)Refrigeration equipment lightingABS piping manufacturingCommercial and industrial lighting
Objects of the Issue
- Repayment/prepayment, in full or part, of certain borrowings availed by our Company and its Subsidiaries on consolidated basis ₹500.00 million p.27
- Investment in our wholly owned Subsidiary, IKIO Solutions Private Limited, for setting up a new facility at Noida, Uttar Pradesh ₹2,123.11 million p.27
- General corporate purposes p.27
- Funding capital expenditure for capacity expansion of manufacturing facilities through wholly owned subsidiary IKIO Solutions Private Limited in Noida, including development of new manufacturing facility, capacity expansion, backward integration and R&D support ₹2,123.11 million p.44
- Repayment or prepayment of borrowings availed by subsidiaries p.59
- General corporate purposes p.73
- Repayment/prepayment, in full or part, of certain borrowings availed by our Company and its Subsidiaries on consolidated basis ₹500.00 million p.103
- Investment in our wholly owned Subsidiary, IKIO Solutions Private Limited, for setting up a new facility at Noida, Uttar Pradesh ₹2,123.11 million p.106
- General corporate purposes p.116
- Funding capex for the new manufacturing facility - construction of a new manufacturing facility of approximately 500,000 square feet in Noida ₹2,628.75 million p.196
- Construct a new manufacturing facility of approximately 500,000 sq.ft. at Noida to manufacture LED home lighting, solar panel & systems and ABS pipes Part of ₹2,123.11 million total investment (Fiscal 2023 to Fiscal 2024) p.412
- Purchase new plant & machinery Part of ₹2,123.11 million total investment (Fiscal 2023 to Fiscal 2024) p.412
- Fresh Issue by the Company aggregating up to ₹3,500 million ₹3,500 million p.495
Issue Structure
- Total Issue
- Up to [●] equity shares aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹ 3,500 million
- Offer for Sale
- Up to 9,000,000 Equity Shares aggregating up to ₹ [●] million comprising 6,000,000 shares by Hardeep Singh and 3,000,000 shares by Surmeet Kaur
- Price Band
- Price band of a minimum price of ₹ [●] per Equity Share (Floor Price) and the maximum price of ₹ [●] per Equity Share (Cap Price), to be announced at least two Working Days prior to Bid/Offer Opening Date
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 per Equity Share
Business Model
The company operates as an ODM and OEM, manufacturing and supplying LED lighting products and components to customers who further distribute under their own brands or use for their own applications. Revenue is generated through the sale of manufactured products to customers, with over 85% from top 20 customers. The company maintains inventory of raw materials, work-in-progress and finished goods, with average lead time for inventory receipt being 15 days to 3 months.
Business Segments
Premium segment LED lighting offerings including lighting, fittings, fixtures, accessories and components.
Lighting solutions (lights, drivers and controls) provided to commercial refrigeration equipment suppliers.
Manufacturing of an alternative to polyvinyl chloride (PVC) piping called ABS piping primarily used by US customers for plumbing applications in recreational vehicles (RVs).
Manufacturing and assembly of other products including fan regulators designed by clients, light strips, moulding and other components and spares.
Manufacturing of LED lighting products including lighting, fittings, fixtures, accessories and components including LED strip lights and individual LED bulbs, as well as AC light strips, moulding and fan regulators
Manufacturing of acrylonitrile butadiene styrene (ABS) piping as an alternative to polyvinyl chloride (PVC) piping
Contract manufacturing and assembly services for OEMs and branded companies seeking outsourced manufacturing solutions in the electronics sector
Manufacturing and assembly of LED lighting products and fixtures
Manufacturing of ABS pipe products
Manufacturing of refrigeration lighting products
Other electronic and component products
Manufactures and designs LED lights, fittings, fixtures, accessories, LED strip lights, individual LED rechargeable bulbs and RV lights. Products are innovated, developed, and manufactured to compete with international markets on quality, delivery and pricing.
Provides lighting solutions (lights, drivers and controls) to commercial refrigeration equipment suppliers. Key customers include Voltas Limited, Frigoglass India Private Limited and Western refrigeration Private Limited.
Manufactures ABS piping as an alternative to PVC piping, consisting of pipes made of thermoplastic resin used for plumbing applications in recreational vehicles, primarily for US customers.
Manufactures and assembles fan regulators and switches designed by clients, light strips, moulding, and other components and spares. One promoter commenced the fan regulator switches business in Fiscal 1999.
Manufacture and sale of LED lighting products including refrigerator lights, LED fixtures, and LED drivers
Manufacture and export of ABS pipes
The company deals in one business segment namely Manufacturing of LED Lighting
Manufacturing and sale of LED lighting products
Manufacturing and sale of LED lighting related products
Manufacturing and sale of LED lighting products
Export of LED lighting products
Premium segment LED lighting offerings including lights, fittings, fixtures, accessories and components
Lighting solutions (lights, drivers and controls) provided to commercial refrigeration equipment suppliers
Manufacture of acrylonitrile butadiene styrene (ABS) piping as an alternative to polyvinyl chloride (PVC) piping, primarily used by US customers for plumbing applications in recreational vehicles (RVs)
Manufacture and assembly of other products including fan regulators designed by clients, light strips, moulding, and other components and spares
SWOT Analysis
Strengths
- • ODM and OEM manufacturing capabilities with design and development expertise(p.25)
- • Diversified product portfolio across LED lighting, refrigeration lights, ABS piping and other products(p.25)
- • Strong R&D capability with approximately 450 new products developed in last three years(p.42)
- • Multiple manufacturing facilities with operational infrastructure(p.37)
- • Strategic positioning in high-growth LED and EMS markets(p.120)
- • Diversified product portfolio spanning high-margin segments(p.120)
- • Established long-term customer relationships(p.120)
- • Strong R&D capabilities and infrastructure(p.120)
- • Consistent financial performance(p.120)
- • Experienced leadership team(p.120)
- • Leading ODM player in premium LED lighting with proven track record(p.188)
- • Strong relationship with marquee customer Signify (Philips) commanding 50% market share in functional decorative lighting(p.188)
- • Significant manufacturing capacity with backward integration capabilities(p.193)
- • Strong financial performance with consistent CAGR growth(p.194)
- • High customer retention with 93.56% repeat customers in Fiscal 2022(p.188)
- • Diversified product portfolio across LED lighting, refrigeration lights, ABS piping and other products(p.188)
- • Positioned to capitalize on growing LED market tailwinds driven by governmental policies(p.190)
- • Experienced management team with founder having 20+ years in electronics manufacturing(p.195)
- • Backward integrated manufacturing with in-house component production(p.205)
- • Diversified raw material suppliers with multiple sourcing options(p.206)
- • Strong quality control infrastructure with certified team(p.207)
- • ISO certifications across quality, environment, and occupational health(p.207)
- • Gender diversity in workforce with nearly 50% female employees(p.209)
- • Stable workforce with no material labor disputes(p.209)
- • Established manufacturing operations with significant asset base(p.321)
- • Consolidated subsidiary companies expanding production capacity(p.275)
- • Significant revenue growth from consolidated operations(p.331)
- • Right-of-use assets from subsidiary property leases(p.277)
- • Strong customer relationships with established OEM partners, especially Signify (Philips)(p.407)
- • High customer retention and diversified customer base across segments(p.407)
- • Backward integrated manufacturing with in-house component production capabilities(p.408)
- • Strong R&D capability with dedicated specialized team(p.407)
- • Growing revenue and profitability track record(p.429)
Weaknesses
- • Extreme customer concentration with 70% revenue from single customer (Signify/Philips)(p.35)
- • No long-term purchase commitments from customers; orders placed on monthly basis(p.35)
- • High inventory holding levels (143 days as of December 31, 2022) indicating inventory management challenges(p.39)
- • Negative operating cash flows in prior years (FY2021 and FY2022)(p.40)
- • Dependency on leasehold properties with short renewal windows (some expiring in 2023-2024)(p.41)
- • Capacity expansion subject to delays, cost overruns, and government approvals(p.44)
- • High working capital requirements and deteriorating working capital ratios(p.45)
- • Extended inventory and receivable days indicating working capital stress(p.46)
- • Significant receivables concentration with extended payment terms(p.47)
- • Substantial unsecured promoter loans subject to recall at any time(p.60)
- • High employee attrition and dependence on key personnel(p.46)
- • Subsidiary with no operating revenue history supporting expansion(p.44)
- • Pending litigation including tax proceedings(p.52)
- • Subsidiary losses and accumulated deficits(p.106)
- • High debt burden in subsidiaries requiring repayment(p.106)
- • Concentration of shareholding with two promoters(p.95)
- • Reliance on unproven new facility expansion(p.102)
- • Heavy concentration on single large customer Signify (Philips)(p.192)
- • Significant debt burden with net debt/EBITDA ratio of 2.86 in nine months ended December 31, 2022(p.194)
- • Lack of long-term supply contracts with customers relying on periodic purchase orders(p.200)
- • Dependence on imported critical components including diodes and resistors(p.193)
- • High dependence on imported raw materials from China(p.206)
- • Low insurance coverage for fixed assets(p.208)
- • Limited intellectual property portfolio with no patents(p.208)
- • Reliance on third-party logistics with no long-term contracts(p.207)
- • High leverage with significant short-term borrowings(p.254)
- • High dependence on related party transactions for operations(p.303)
- • Significant unsecured borrowing from directors and relatives(p.289)
- • Rising current liabilities and borrowing obligations(p.322)
- • Increasing inventory levels requiring working capital management(p.322)
- • Trade receivables with significant credit risk(p.279)
- • High reliance on few major customers(p.382)
- • Significant concentration of debt and dependence on related party funding(p.370)
- • Deteriorating liquidity reflected in declining cash balances(p.338)
- • Inventory build-up requiring working capital management(p.358)
- • Weak profitability in current period despite revenue(p.398)
- • Significant customer concentration with dominant player(p.409)
- • No long-term contracts with customers, leaving revenue vulnerable to cancellation(p.410)
- • Significant reliance on imported raw materials exposed to supply volatility(p.408)
- • High debt-equity ratio indicating increased financial leverage(p.427)
- • Substantial capital requirements for planned expansion may strain resources(p.412)
- • High reliance on inventory buffer due to COVID-19 supply chain disruptions(p.450)
- • Significant increase in debt to fund operations and working capital(p.453)
- • High debt concentration in short-term borrowings and cash credit facilities(p.465)
- • Substantial trade receivables concentration from single customer(p.458)
Opportunities
- • LED lighting market growth in India aligned with sustainability goals(p.25)
- • Expansion of customer base beyond top customer through subsidiaries and new products(p.35)
- • Significant wallet share with largest customer (45%) suggesting growth potential(p.35)
- • New facility investment in Noida to expand manufacturing capacity(p.27)
- • Expand into new product lines and diversify revenue streams(p.53)
- • Increase manufacturing capacity for existing and new products(p.53)
- • Expand customer base and geographic presence(p.53)
- • Increase R&D investment and ODM business(p.53)
- • Growth in EMS sector driven by outsourcing trends(p.50)
- • Backward integration to support manufacturing efficiency(p.48)
- • ESG and sustainability focus aligned with government goals(p.53)
- • India emerging as alternative EMS manufacturing hub to China(p.141)
- • Government incentives and PLI scheme for electronics manufacturing(p.141)
- • Rapid growth in LED lighting market(p.146)
- • Expansion into new business verticals including solar and RV segments(p.106)
- • Significant growth runway in Indian electronics market(p.143)
- • Indian LED lighting market expected to grow at CAGR of 12.2% to reach INR 338,000 million by FY26(p.195)
- • Plan to expand manufacturing capacity with new 500,000 sq ft facility in Noida(p.196)
- • Export market for electronics products expected to grow at CAGR of 50.1% driven by PLI scheme(p.200)
- • Strategy to expand into new product lines including solar energy solutions and accessories(p.195)
- • Plan to expand geographically focusing on North American, European and South East Asian markets(p.196)
- • Government initiatives driving LED adoption through UJALA and Street Lighting National Program(p.166)
- • National Policy on Electronics positioning India as global ESDM hub(p.212)
- • Mandatory LED lamp registration and quality standards creating market consolidation(p.211)
- • Export promotion through EPCG scheme for reduced duty on capital goods(p.213)
- • Expansion through acquisition of subsidiary entities(p.319)
- • Increasing export earnings demonstrating international market potential(p.305)
- • Growth in consolidated profit demonstrating operational synergies(p.331)
- • Expansion of production footprint through multiple subsidiary locations(p.288)
- • LED lighting market expansion driven by energy efficiency trends(p.341)
- • Growth through subsidiary and export market expansion(p.389)
- • Scaling production through capital investment in manufacturing(p.354)
- • Diversified revenue streams across multiple entities and customer segments(p.382)
- • Growing Indian LED lighting market with strong CAGR(p.411)
- • Rapidly expanding export business, particularly to the United States(p.411)
- • Benefit from geopolitical shift in manufacturing from China to alternative locations(p.411)
- • Growing diversification into new product lines and segments(p.410)
- • Increasing consumer adoption and affordability of LED lighting(p.411)
- • Expansion through acquisition of multiple subsidiaries(p.451)
- • Capital investment in manufacturing facility expansion(p.453)
- • Growth through increased capital expenditure on plant and machinery(p.456)
- • Scale operations through proforma consolidated revenue growth(p.450)
Threats
- • Risk of loss of largest customer or reduction in their orders(p.35)
- • Heavy dependence on imported raw materials (55.67% of materials from China, Singapore, Hong Kong, Taiwan)(p.39)
- • Supply chain risks and price volatility for critical semiconductor components(p.38)
- • Geographically concentrated manufacturing (Uttarakhand and NCR) exposed to regional risks(p.37)
- • Intense competitive environment with larger competitors having greater resources(p.42)
- • Regulatory and environmental compliance risks including potential facility shutdowns(p.43)
- • Cyclical demand vulnerable to economic downturns(p.50)
- • Rapidly changing market preferences and technology obsolescence(p.52)
- • Customer decision to reduce outsourcing or source from competitors(p.50)
- • Dependence on third-party transportation and logistics providers(p.47)
- • Aggressive pricing pressure from customers and competitors(p.52)
- • Supply chain disruptions and raw material price volatility(p.49)
- • Seasonal business with stronger Q3 and Q4 demand(p.50)
- • Foreign exchange rate fluctuations affecting exports(p.54)
- • Indian economic slowdown and macroeconomic headwinds(p.64)
- • Regulatory changes and compliance uncertainty(p.65)
- • Trade barriers and tariffs impacting exports(p.66)
- • COVID-19 related disruptions and lockdowns(p.49)
- • Natural calamities and geopolitical risks affecting India(p.66)
- • High competition in EMS industry with numerous market participants(p.139)
- • Industry-wide margin compression(p.139)
- • Supply chain complexity and disruptions(p.139)
- • Global semiconductor chip shortage impacting production(p.143)
- • Import dependence on Chinese components and rising costs(p.149)
- • Regulatory and IP compliance risks(p.139)
- • Global semiconductor shortage impacting component availability and pricing(p.193)
- • Supply chain disruptions from Russia-Ukraine war affecting semiconductor supply(p.164)
- • India heavily dependent on imported components for electronics manufacturing(p.164)
- • Intense competition from established global EMS players and Chinese manufacturers(p.152)
- • Depreciation in Rupee value impacting margins of importers(p.174)
- • Competitive pressure from Chinese LED producers entering Indian market(p.167)
- • Commodity price volatility impacting raw material costs(p.206)
- • Severe competition from large domestic and global EMS players(p.208)
- • Supply chain disruption risks from third-party logistics dependence(p.207)
- • Regulatory compliance burden from multiple environmental and safety laws(p.207)
- • Lease-dependent property with short-term renewal risks(p.209)
- • Floating rate interest exposure on significant debt(p.313)
- • Foreign exchange fluctuation risk from export exposure(p.312)
- • Regulatory compliance requirements and government authority interactions(p.295)
- • Dependence on bank credit facilities with multiple creditors(p.288)
- • Input cost volatility from raw material purchases in foreign currency(p.305)
- • Rising raw material costs impacting profitability(p.389)
- • Interest rate volatility affecting borrowing costs(p.397)
- • Foreign exchange risk from export operations(p.396)
- • Significant outstanding contingent liability(p.379)
- • High leverage and debt service pressure(p.398)
- • Volatility in raw material prices not fully controllable(p.408)
- • Inability to guarantee raw material supply and sourcing at acceptable terms(p.409)
- • Macroeconomic factors and global demand cycles significantly impact business(p.409)
- • COVID-19 and similar disruptions could restrict workforce access and disrupt operations(p.410)
- • Risk of slowdown in LED adoption due to increased supply chain costs(p.411)
- • Seasonality affects revenue distribution within fiscal years(p.412)
- • Supply chain disruptions requiring high inventory buffers(p.451)
- • Single customer revenue concentration risk(p.462)
- • Cyclical demand in served markets(p.462)
- • Currency and commodity price exposure(p.460)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Hardeep Singh | Promoter | 60.00% | — |
| Surmeet Kaur | Promoter | 40.00% | — |
| Hardeep Singh | Promoter/Chairman and Managing Director | — | — |
| Surmeet Kaur | Promoter/Whole-Time Director | — | — |
| Hardeep Singh | Promoter | 60.00% | — |
| Surmeet Kaur | Promoter | 40.00% | — |
| Ishween Kaur | Promoter Group | Negligible | — |
| Harjeet Singh | Promoter Group | Negligible | — |
| Hardeep Singh | Promoter/Promoter Group | — | — |
| Hardeep Singh | Promoter | 100% (38,999,142 shares) | — |
| Surmeet Kaur | Promoter | 100% (26,000,000 shares) | — |
| Hardeep Singh | Promoter | 60.00% | — |
| Surmeet Kaur | Promoter | 40.00% | — |
| Hardeep Singh | Promoter | 60.00% | — |
| Surmeet Kaur | Promoter | 40.00% | — |
| Hardeep Singh | Promoter/Managing Director | — | — |
| Hardeep Singh | Selling Shareholder | — | — |
| Surmeet Kaur | Selling Shareholder | — | — |
| Hardeep Singh | Selling Shareholder | — | — |
| Surmeet Kaur | Selling Shareholder | — | — |
Leadership
Hardeep Singh · Chairman and Managing Director
Surmeet Kaur · Whole-time Director
Sanjeet Singh · Whole-time Director
Subhash Chand Agrawal · Chief Financial Officer
Sandeep Kumar Agarwal · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
IKIO Lighting IPO FAQs
What is the lot size of IKIO Lighting IPO?
The minimum lot size of IKIO Lighting IPO is 52 shares. One lot costs ₹14,820 at the cut-off price.
When does IKIO Lighting IPO open and close?
IKIO Lighting IPO opened for subscription on 06 Jun 2023 and closed on 08 Jun 2023.
What is the listing date of IKIO Lighting IPO?
IKIO Lighting IPO listed on 16 Jun 2023.