IKIO Lighting shares extend gains after strong debut; Stock surges 56% above the issue price

Shares of IKIO Lighting extended its gains in the new week as the latest debutant of Dalal Street surged another 10 per cent on Monday. The company was listed on Friday and delivered a strong listing pop of 38 per cent over its issue price at Rs 285 to the investors.

Shares of IKIO Lighting surged as much as 10 per cent to Rs 443.80 on Monday compared to its previous close at Rs 403.75 on BSE. The stock is up about 14 per cent against its issue price at Rs 391 on BSE, while the stock is up almost 56 per cent over its given issue price.

On Friday, two schemes of Quant Mutual Fund bought a total of 12.03 lakh equity shares of IKIO Lighting at an average price of Rs 409.08 amounting to more than 49.21 crore, the bulk deal data from the National Stock Exchange (NSE) shows.

The initial public offering of IKIO Lighting had majorly garnered positive reviews from the analysts but after listing a few of them suggested to book profits and re-enter the counter at lower levels, while others considered to hold it for a long-term perspective.

IKIO Lighting made its strong debut in the market, which is better than expected, said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart on its debut. She had suggested investors to hold shares for a longer period considering its strong focus on R&D and backward integration, its well-established relationship with clients, and its consistent financial performance.

The Rs 607 crore-initial public offering (IPO) of IKIO Lighting was open for bidding between June 6-8 and the company had fixed a price band of Rs 270-285 apiece for the issue with a lot size of 52 equity shares. The issue garnered a strong response from the investors during the three-day bidding process.

The issue was overall subscribed more than 66.30 times, with the portion for qualified institutional bidders was booked 163.68 times; the category for non-institutional investors' category subscribed 63.35 times and the quota reserved for retail investors was subscribed 13.86 times.

Vaibhav Kaushik, Research Analyst, GCL Broking said that IKIO Lighting was expected to list above Rs 380 and existing investors are advised to keep for target Rs 500 and even higher in the next few quarters

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