Strong Listing Expected for IKIO Lighting IPO, Analysts Suggest Partial Profit Booking.

IKIO Lighting is poised for a robust listing on June 16, with analysts anticipating a significant premium. The company's strengths, including long-term relationships with industry leaders, a strong focus on R&D, established infrastructure, and consistent financial performance, contribute to the positive outlook for its IPO. This article delves into the reasons behind analysts' optimistic predictions and provides insights into IKIO Lighting's market potential.


The response to IKIO Lighting's initial public offering (IPO) has been overwhelming, reflecting the company's current performance and growth potential. With a strong grey market premium and high demand during book building, analysts expect the stock to list at an upside of approximately 30-35 percent. Anubhuti Mishra, an Equity Research Analyst at Swastika Investmart Ltd., justifies this projection, emphasizing IKIO Lighting's strengths, such as its focus on R&D, backward integration, and enduring client relationships.

Despite a recent decrease in the grey market premium, which reached a peak of Rs 125 or 44 percent above the issue price, analysts remain unfazed. Astha Jain, Senior Research Analyst at Hem Securities, expects the company to list at a premium of 25-30 percent. She advises investors to consider partial profit booking if the stock trades at a premium of 30-35 percent on the listing day. Additionally, Jain suggests that investors who received an allocation should hold a partial allotment for the long term, as IKIO Lighting is well-positioned to capitalize on the growth of the LED market through its diverse product portfolio and focus on high-margin segments.

The IKIO Lighting IPO garnered significant interest, with the overall subscription reaching 66.30 times during June 6-8. Qualified institutional buyers' portion was oversubscribed by 163.58 times, while high net worth individuals subscribed 63.35 times and retail investors subscribed 13.86 times. Manish Chowdhury, Head of Research at Stoxbox, attributes this strong response to IKIO Lighting's adoption of the original design manufacturing (ODM) business model, which fosters long-term customer relationships and enables higher premiums for its designs. Furthermore, the company's commitment to diversifying its product offerings and the promising growth potential of the Indian high-end home and decorative lighting market contribute to favorable future business prospects.

IKIO Lighting's product range encompasses LED lighting, refrigeration lights, ABS piping, and other related items. The company, along with its shareholders, raised Rs 606.5 crore through the IPO, at the upper end of the price band ranging from Rs 270 to Rs 285 per share. The funds raised will primarily fuel the company's expansion plans.

Market participants have shown substantial interest in the IKIO Lighting IPO, and analysts expect a significant premium at the time of listing. Investors are advised to exercise caution and consult certified experts before making any investment decisions. With its strong fundamentals, strategic focus, and market potential, IKIO Lighting appears well-positioned for future growth in the LED industry and related high-margin segments.

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