IKIO Lighting IPO Overview: IKIO Lighting Restricted is arising with its Preliminary Public Providing. The IPO will open for subscription on 6 June 2023, and shut on 8 June 2023. On this article, we are going to take a look at the IKIO Lighting IPO Overview 2023 and analyze its strengths and weaknesses. Maintain studying to seek out out!
IKIO Lighting IPO Overview – About The Firm
The corporate was integrated as Ikio Lighting Non-public Ltd on March 21, 2016, having an trade presence of over 6 years. Initially, the corporate started operations in manufacturing fridge lights, earlier than transitioning to numerous LED lighting options.
The corporate is basically an Authentic Design Producer that designs, manufactures and provides merchandise to prospects. They produce LED lighting merchandise, throughout their 4 manufacturing vegetation current between NCR and Uttarakhand, India. The corporate has a mixed manufacturing presence of over 18 million fixtures on an annual foundation, with 58,000 remaining merchandise being assembled each 12 hours.
Providers Offered by the Firm
IKIO Lighting Ltd has a diversified merchandise portfolio which incorporates:
(Supply: RHP of the corporate)
ABS Piping utilized in leisure automobiles
Fridge LED lighting
Fan Regulators and Switches
LED Spare Elements & Others
IKIO Lighting IPO Overview – Monetary Highlights
If we take a look at the financials of IKIO Lighting IPO we discover out that their belongings have grown from Rs.144.83 crores in March 2020 to Rs.335.50 crores in December 2022.
Equally, the corporate has even witnessed important development in its income, it has grown from Rs. 221.83 crores in March 2020 to Rs. 334.00 crores in March 2022. As of December 2022, the corporate’s income stood at Rs 332.79 crores for FY23 which is near the FY22 earnings and likewise a transparent indication of the corporate exceeding its income as soon as once more.
The earnings of the corporate have additionally adopted an identical pattern. Their earnings have grown from Rs. 21.41 crores in March 2020 to Rs. 50.52 crores in March 2022. As of December 2022, the corporate’s earnings stand at Rs 51.35 crores for FY23 which is already exceeding the online revenue of the earlier monetary yr.
It is usually vital to notice that the corporate’s borrowing has elevated from Rs. 46.86 crores In March 2020 to Rs.136.33 crores on December 22.
(Supply: RHP of the corporate)
IKIO Lighting IPO Overview – Rivals
(Supply: RHP of the corporate)
Strengths
The corporate is well-positioned to seize development within the LED market, which is pushed by varied components a few of which embody an increase in good metropolis/ infrastructure tasks and an elevated demand for energy-efficient lighting
The corporate presents a various vary of merchandise starting from LED lighting to ABS pipings which assist the corporate unfold into totally different industries. This helps them seize prospects from totally different segments permitting them to extend their market share.
The corporate has provided its merchandise to virtually 900 prospects and 16 worldwide prospects. The corporate additionally has relationships with main trade prospects like Signify (Philips), Western Refrigeration Non-public Restricted, Panasonic Life Options India Non-public Restricted and Novateur Electrical & Digital Techniques Non-public Restricted
The R&D division generates ODM designs independently, in addition to evaluates and develops OEM designs obtained from shoppers, and converts such designs into deliverable merchandise by enhancing the designs, suggesting appropriate uncooked supplies, and testing the trial merchandise
Other than the diodes and resistors utilized in for LED lighting merchandise, all mechanical parts are manufactured by the corporate with their in-house software room.
Weaknesses
A good portion of the corporate’s income is gained by means of Signify Ltd and 85% of its income is gained by means of 20 of its prime prospects. Any delay or discount within the demand or termination of the connection by any of the important thing prospects will disrupt the move of enterprise.
The corporate doesn’t have a long-term settlement with any of its prospects. Which means that the corporate operations shall be adversely affected if the shoppers don’t renew their contracts.
For its parts, provides, and stock-in-trade, in addition to buyer assist companies equivalent to product repairs and returns, the agency depends on a unique of third-party suppliers. Any shortfalls on the a part of the suppliers can result in a damaging impression on the corporate.
The corporate additionally imports varied uncooked supplies required to run its operations from different nations. Any disruption referring to the uncooked materials provide or its prices can disrupt the operations of the corporate.
The corporate requires a major sum of working money to capital for its continued operation and development. The shortcoming to fulfill working capital necessities might need a damaging impression on working efficiency and monetary place.
IKIO Lighting IPO Overview – GMP
The shares of IKIO Lighting traded at a premium of 14.04% within the gray market on June 2nd, 2023. The shares tarded at Rs 325. This provides it a premium of Rs 10 per share over the cap worth of Rs 40.
IKIO Lighting IPO Overview – Key IPO Data
Promoters: Hardeep Singh and Surmeet Kaur
Ebook Operating Lead Supervisor: Motilal Oswal Funding Advisors Restricted
Registrar to the Provide: KFin Applied sciences Restricted
The Goal of the Problem
The online proceeds from this concern shall be utilized for the next functions:
Reimbursement/ prepayment of sure borrowings availed by the corporate and its subsidiaries in full or partially.
Investing in its wholly-owned subsidiary, IKIO Options Non-public Restricted, with a purpose to arrange a brand new facility in Noida, Uttar Pradesh.
Basic company functions
IKIO Lighting IPO Overview – GMP
As of now there isn’t any GMP accessible, we are going to replace the article as soon as we get an replace on it.
In Closing
On this article, we seemed on the particulars of IKIO Lighting IPO Overview 2023. Analysts stay divided on the IPO and its potential positive aspects. It is a good alternative for traders to look into the corporate and analyze its strengths and weaknesses. That’s it for this publish.
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