IKIO Lighting IPO: GMP holds steady amid Robust QIB and NII bidding

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IKIO Lighting IPO Witnesses Strong QIB and NII Bidding as GMP Remains Steady

Despite market volatility, IKIO Lighting has maintained a strong grey market premium (GMP) due to the impressive subscription rate for its initial public offering (IPO). The IPO concluded on Thursday with an overall subscription of 66.30 times, demonstrating significant investor enthusiasm.

Qualified institutional bidders showed exceptional interest, subscribing a remarkable 163.68 times the allotted portion, while non-institutional investors subscribed to 63.35 percent. Retail investors also displayed significant participation, subscribing 13.86 times the reserved quota, according to data from BSE.

In the grey market, IKIO Lighting’s shares are currently commanding a premium of Rs 118-120 per equity share, indicating a potential upside of over 40 percent compared to the upper limit of the issue’s price band. The GMP on the final day of bidding was Rs 125-130. However, considering the broader market’s volatility, the premium in the unofficial market has experienced a slight correction.

Analysts closely monitoring the grey market attribute the strong GMP to robust subscription levels, reasonable valuations, positive market sentiments, and the recent successful listing of Mankind Pharma. These factors have contributed to the premium observed in the grey market.

Abhay Doshi, Co-founder at UnlistedArena, expressed confidence in IKIO Lighting’s prospects, noting the strong bidding activity at Dalal Street. He believes that if broader market sentiments remain favorable, the company may experience a significant listing boost.

“IKIO kept the valuations reasonable, making it an attractive proposition for investors in the primary markets. The recent successful listing of Mankind Pharma suggests that there is still hope in this sector if companies provide enticing opportunities to investors,” said Doshi.

The IPO of IKIO Lighting, worth Rs 607 crore, was offered in the price range of Rs 270-285 per share from June 6 to June 8. The subscription received bids for over 100 crore equity shares against a net offer of 1.52 crore equity shares, considering the allocation to anchor investors.

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IKIO Lighting raised Rs 181.95 crore by allocating 63.84 lakh equity shares to 16 anchor investors at a price of Rs 285 per share, the upper price band, as stated in a circular with BSE.

Established in 2016, IKIO Lighting is a Noida-based company specializing in the manufacturing of light-emitting diode (LED) lighting solutions. The company primarily operates as an original design manufacturer (ODM) and focuses on providing premium LED lighting solutions.

Krishna Raghavan, Founder at Unlistedkart, highlighted IKIO Lighting’s focus on sustainability, premium offerings, and strong financial track record. He stated, “Investors seeking long-term prospects in the lighting sector should consider subscribing to the IKIO Lighting IPO, as it offers the potential for substantial returns while contributing to a greener and more sustainable future.”

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