Shares of IKIO Lighting made a better-than-expected debut today as the stock was listed at Rs 392.50 on NSE, a premium of 38% above its issue price of Rs 285. Similarly, on BSE, the issue was listed at Rs 391, 37% above its issue price
Grey market premium (GMP) for IKIO Lighting remained volatile ever since the IPO closed last week. Ahead of the listing, IKIO Lighting shares were commanding a grey market premium of around Rs 100 over its issue price of Rs 285. At its peak, IKIO Lighting GMP stood around Rs 120-125 apiece
IKIO Lighting raised about Rs 607 crore from its initial stake sale, which was opened for bidding between June 6 and June 8. The company had set 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 IPO was overall subscribed 66.30 times, with the portion for qualified institutional bidders (QIB) getting 163.68 times subscription; the category for non-institutional investors (NIIs) was subscribed 63.35 times and the quota reserved for retail investors was booked 13.86 times
"A better-than-expected response to IPO was mainly due to the business model of ODM, followed by its higher operating margins compared to peers and reasonable discounted valuations at the time of IPO when compared to listed peers," said Prashanth Tapse, Senior VP - Research, Mehta Equities
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart expected IKIO Listing to deliver an upside of around 30-35% on debut, thanks to its strong IPO response and sturdy premium in the grey market. "Its current performance and growth potential justify the gains," she said
"IKIO Lighting's issue price at the upper band was Rs 285, so it is around 37% of the gain for investors which is even more than expected. considering its strong focus on R&D and backward integration, its well-established relationship with clients, and its consistent financial performance we still have a positive view on this thus we will suggest investors hold this share for a longer period by keeping a stop loss 10% below its listing price," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart
Astha Jain, Senior Research Analyst at Hem Securities also expected IKIO Lighting shares to list at 25-30% premium. “We recommend partial profit booking on the listing day if it trades at 30-35% premium," she said
Incorporated in 2016, the Noida-based IKIO Lighting manufactures light-emitting diode (LED) lighting solutions. The company is primarily an original design manufacturer (ODM). The company's LED lighting offerings focus on the premium segment
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