IKIO Lighting files DRHP for IPO

4 Oct 2022 , 09:24 AM

Light-emitting diode (“LED”) lighting products are produced in India by IKIO Lighting Limited. 

To raise money through an initial public offering, it has submitted its draft red herring prospectus to the capital markets regulator, the Securities and Exchange Board of India (IPO).

The public offering consists of a new issue of equity shares up to Rs350 crore and an offer-for-sale (OFS) of up to 7,500,000 equity shares by the promoter and selling shareholders, of which up to 6,000,000 will come from the promoter Hardeep Singh and up to 1,500,000 will come from Surmeet Kaur (“Selling Shareholders”).

The offer is being made through the book-building process, in which not less than 15% of the offer must be made available to non-institutional bidders, not less than 35% of the offer must be made available to retail individual bidders, and not more than 50% of the offer may be allocated to qualified institutional buyers.

A preferential issuance or any other strategy totaling up to Rs50 crore may also be considered by the company in conjunction with merchant bankers. If such a placement is successful, the size of the new issue will be decreased.

The 50 crore rupee earnings from the new issuance would be used for prepayment or repayment, on a consolidated basis, in whole or in part, of certain borrowings used by the company and its subsidiaries. A total of Rs236.68 crore will be invested in the company’s fully owned subsidiary, IKIO.

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