IKIO Lighting IPO Listing Date Today: What To Expect On Dalal Street?

IKIO Lighting will begin trading on Dalal Street today, June 16, 2023. The shares will be listed on the BSE and NSE platforms. Grey market observers, however, predict an enormous listing premium before the IKIO Lighting IPO listing. Market observers suggest that shares of IKIO Lighting Ltd. are signalling a grey market premium (GMP) of Rs 90, and since the listing price for the IKIO Lighting IPO is Rs 285, market watchers anticipate a listing gain of around 31.58 percent over the issue price taking the IKIO Lighting opening price to Rs 375 level.

Nainesh Thakkar, Head of One Percent Academy by Fisdom said "IKIO Lighting Ltd., a LED manufacturing company incorporated in 2016, has shown impressive revenue growth over the past few years. From 2020 to 2022, their revenue increased from 221 Crs to 332 Crs,this growth indicates that the company is successfully capturing market share and benefiting from increasing demand for LED products."

The company's financials also reveal a positive trend in profitability. IKIO Lighting Ltd. reported a Profit After Tax (PAT) of 21 Crs in 2020, which grew to 51 Crs in 2022. Key financial indicators such as Return on Equity (ROE) and Return on Capital Employed (ROCE) are also quite impressive. With an ROE of 36% and an ROCE of 26%, IKIO Lighting Ltd. Furthermore, the Debt/Equity ratio of 1.03 suggests a balanced capital structure," said Nainesh Thakkar.

"The subscription status of the IPO reflects strong investor interest, with oversubscription in all categories. The IPO was subscribed 163 times by Qualified Institutional Buyers (QIBs), 65 times by Non-Institutional Investors (NIIs), and 14 times by Retail investors. Considering the company's strong financial performance, robust growth potential, and favorable market sentiment, we anticipate the stock to open at a premium of approximately 38-40% above the IPO issue price, around Rs. 390-400," Nainesh Thakkar further added.

Commenting on the listing of IKIO Lighting IPO, Milan Sharma, Founder, 35North Ventures said "In my opinion, IKIO should list at premium given the strong growth potential and sustained past financial performance. In my view, this should list anywhere between 40 to 50 percent over the issue price. Overall, it is a great story, and one can hold for a long term in a portfolio."

Commenting on the share price prediction of IKIO Lighting IPO, A R Ramachandran, Co-founder & Trainer-Tips2trades said "Even though return ratios and consistent profit growth make IKIO Lighting a good buy, investors should also be wary of its high debt-equity ratio. Considering current valuations post expected listing as per GMP would be at a premium of at least 30%, investors should book partial profit for listing gains."

Commenting on the listing premium of IKIO Lighting IPO, Ravi Singh, Vice President and Head of Research, Share India said "The current market sentiments are favourable for IPO listings and it is most probable that IKIO Lighting may list at a premium of 35 to 40 percent on the listing day."

Vaibhav Kaushik, Research Analyst, GCL Broking said "Ikio lighting can list above 380 investors are advised to keep for target above 500 levels in few quarters."

The IPO being offered by IKIO Lighting Limited includes both a Fresh Issue with a value of Rs 350.00 Cr and an OFS (Offer For Sale) with 90 lakh shares. The IPO's subscription window operated from May 6 through June 8, 2023. The face value of each equity share in this initial public offering (IPO) is Rs 10, and the issue's price band is from Rs 270 to Rs 285 per share, with a minimum lot size of 52 shares.

Disclaimer

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