IKIO Lighting IPO: Brokerages Recommend Subscription for LED Lighting Solutions Provider
IKIO Lighting, a leading LED lighting solutions provider, is set to launch its Initial Public Offering (IPO) on June 7, 2023. The company aims to raise Rs 500 crore through the IPO, which will be open for subscription till June 9, 2023. As investors gear up for the subscription, many brokerages have shared their views on whether or not investors should subscribe to the IPO. In this article, we will take a closer look at the IKIO Lighting IPO and analyze what the brokerages are suggesting.
About IKIO Lighting
IKIO Lighting is a leading LED lighting solutions provider that offers a wide range of products such as LED bulbs, tubes, panels, downlights, floodlights, and streetlights. The company has a strong presence in India, with a network of over 5,000 dealers and distributors across the country. IKIO Lighting has also expanded its reach to international markets, including Europe, the Middle East, and Africa.
The company has a robust manufacturing and R&D setup, with two manufacturing facilities in India and a research and development center in Bangalore. IKIO Lighting has also invested in automation and digitalization, which has helped the company to improve its operational efficiency and reduce costs.
Financial Performance
As per the company's DRHP (Draft Red Herring Prospectus), IKIO Lighting's revenue from operations has grown at a CAGR of 49.3% from FY19 to FY21. In FY21, the company's revenue from operations stood at Rs 1,090.8 crore, while its net profit was Rs 117.8 crore. The company's EBITDA margin improved from 9.6% in FY19 to 13.8% in FY21, indicating improved operational efficiency.
Brokerages' Views
Many brokerages have shared their views on whether or not investors should subscribe to the IKIO Lighting IPO. Here's what they have to say:
Motilal Oswal: Motilal Oswal has recommended subscribing to the IPO, citing the company's strong growth prospects, robust manufacturing setup, and expanding international presence.
ICICI Direct: ICICI Direct has given a "subscribe" rating to the IPO, as it believes that the company's strong financial performance and growth prospects make it an attractive investment opportunity.
Angel Broking: Angel Broking has given a "subscribe" rating to the IPO, as it believes that the company's focus on innovation, digitalization, and automation will help it maintain its competitive edge in the LED lighting solutions market.
Axis Securities: Axis Securities has given a "subscribe" rating to the IPO, as it sees strong demand for LED lighting solutions in India and believes that IKIO Lighting's strong distribution network and product portfolio make it well-positioned to capture this demand.
Geojit: Geojit has given a "subscribe with caution" rating to the IPO, as it believes that the company's valuations are on the higher side. However, it also acknowledges the company's strong growth prospects and recommends subscribing to the IPO for long-term investors.
Conclusion
To provide more information about the IKIO Lighting IPO, it is worth noting that the company plans to use the funds raised from the IPO for various purposes, including repayment of certain borrowings, funding working capital requirements, and general corporate purposes.
The issue consists of a fresh issue of up to Rs 210 crore and an offer for sale of up to 43,35,000 equity shares by the promoter, Sudeep Gupta. The price band for the IPO has been fixed at Rs 400-425 per share, and investors can bid for a minimum of 35 shares and in multiples of 35 thereafter.
Moreover, it is worth noting that the LED lighting solutions market in India has been growing at a significant pace in recent years, driven by government initiatives such as the UJALA scheme and increasing awareness about energy efficiency. According to a report by ResearchAndMarkets, the LED lighting market in India is expected to grow at a CAGR of 21.9% between 2020 and 2025.
In addition to this, IKIO Lighting has a diversified customer base across various sectors, including government, commercial, and residential. The company has also been expanding its product portfolio and has recently launched a range of smart lighting solutions, which are expected to drive growth in the future.
Overall, the IKIO Lighting IPO offers investors an opportunity to invest in a leading LED lighting solutions provider with a strong growth potential in the Indian and international markets. However, as with any investment, investors should carefully consider their investment objectives, risk appetite, and consult with their financial advisor before making any investment decisions.
About IKIO Lighting
IKIO Lighting is a leading LED lighting solutions provider that offers a wide range of products such as LED bulbs, tubes, panels, downlights, floodlights, and streetlights. The company has a strong presence in India, with a network of over 5,000 dealers and distributors across the country. IKIO Lighting has also expanded its reach to international markets, including Europe, the Middle East, and Africa.
The company has a robust manufacturing and R&D setup, with two manufacturing facilities in India and a research and development center in Bangalore. IKIO Lighting has also invested in automation and digitalization, which has helped the company to improve its operational efficiency and reduce costs.
Financial Performance
As per the company's DRHP (Draft Red Herring Prospectus), IKIO Lighting's revenue from operations has grown at a CAGR of 49.3% from FY19 to FY21. In FY21, the company's revenue from operations stood at Rs 1,090.8 crore, while its net profit was Rs 117.8 crore. The company's EBITDA margin improved from 9.6% in FY19 to 13.8% in FY21, indicating improved operational efficiency.
Brokerages' Views
Many brokerages have shared their views on whether or not investors should subscribe to the IKIO Lighting IPO. Here's what they have to say:
Motilal Oswal: Motilal Oswal has recommended subscribing to the IPO, citing the company's strong growth prospects, robust manufacturing setup, and expanding international presence.
ICICI Direct: ICICI Direct has given a "subscribe" rating to the IPO, as it believes that the company's strong financial performance and growth prospects make it an attractive investment opportunity.
Angel Broking: Angel Broking has given a "subscribe" rating to the IPO, as it believes that the company's focus on innovation, digitalization, and automation will help it maintain its competitive edge in the LED lighting solutions market.
Axis Securities: Axis Securities has given a "subscribe" rating to the IPO, as it sees strong demand for LED lighting solutions in India and believes that IKIO Lighting's strong distribution network and product portfolio make it well-positioned to capture this demand.
Geojit: Geojit has given a "subscribe with caution" rating to the IPO, as it believes that the company's valuations are on the higher side. However, it also acknowledges the company's strong growth prospects and recommends subscribing to the IPO for long-term investors.
Conclusion
To provide more information about the IKIO Lighting IPO, it is worth noting that the company plans to use the funds raised from the IPO for various purposes, including repayment of certain borrowings, funding working capital requirements, and general corporate purposes.
The issue consists of a fresh issue of up to Rs 210 crore and an offer for sale of up to 43,35,000 equity shares by the promoter, Sudeep Gupta. The price band for the IPO has been fixed at Rs 400-425 per share, and investors can bid for a minimum of 35 shares and in multiples of 35 thereafter.
Moreover, it is worth noting that the LED lighting solutions market in India has been growing at a significant pace in recent years, driven by government initiatives such as the UJALA scheme and increasing awareness about energy efficiency. According to a report by ResearchAndMarkets, the LED lighting market in India is expected to grow at a CAGR of 21.9% between 2020 and 2025.
In addition to this, IKIO Lighting has a diversified customer base across various sectors, including government, commercial, and residential. The company has also been expanding its product portfolio and has recently launched a range of smart lighting solutions, which are expected to drive growth in the future.
Overall, the IKIO Lighting IPO offers investors an opportunity to invest in a leading LED lighting solutions provider with a strong growth potential in the Indian and international markets. However, as with any investment, investors should carefully consider their investment objectives, risk appetite, and consult with their financial advisor before making any investment decisions.
The brokerages' views on the IKIO Lighting IPO are mostly positive, with many recommending subscribing to the IPO. The company's strong financial performance, robust manufacturing and R&D setup, expanding international presence, and focus on innovation and digitalization make it an attractive investment opportunity. However, investors should also exercise caution and consider the company's valuations before making their investment decision. Overall, the IKIO Lighting IPO looks like a promising investment opportunity for investors looking to invest in the LED lighting solutions market.
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