IKIO-Lighting- Limited-ipo-elite

IKIO Lighting Limited IPO Company Profile :

IKIO Lighting Limited is an Indian manufacturer of light-emitting diode (“LED”) lighting solutions. The company is focused on sustainability and providing low-energy LED products to help India meet its sustainability goals. IKIO Lighting Limited primarily is an original design manufacturer (“ODM”) and design, develop, manufacture, and supplies products to customers who then further distribute these products under their own brands. The company also works with its customers to develop, manufacture, and supply products that are designed by the customer.

IKIO Lighting Limited’s largest customer is Signify Innovations India Limited, erstwhile Philips Electronics India Limited (“Signify (Philips)”), which according to Frost & Sullivan in Fiscal 2022 had a 50% market share in India’s functional decorative lighting category including LED spotlights, LED downlights, and cove lights and a 10% market share in India’s true-blue decorative lighting segment including chandeliers, wall lights, pendants, outdoor lights. In addition to Signify (Philips), the company has a diversified customer base across industry sectors and geographies which include Western Refrigeration Private Limited, Panasonic Life Solutions India Private Limited, and Novateur Electrical & Digital Systems Private Limited. The company has a history of high customer retention. In Fiscal 2022, it derived approximately 93.56% of its restated revenues from operations from repeat customers.


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    IKIO Lighting Limited IPO Products:

    • LED lighting:

      IKIO Lighting Limited commenced its LED lighting business in Fiscal 2012. The company produces LED lights, fittings, fixtures, accessories, LED strip lights, individual LED rechargeable bulbs, and RV lights for customers in this segment as an ODM. The key customers in this product category are Signify (Philips), Rlux RV LLC, and Zenergy Inc. The products are innovated, developed, and manufactured ingeniously to compete with international markets on quality, delivery, and pricing.

    • ABS piping:

      IKIO Lighting Limited commenced its ABS piping business in Fiscal 2022. ABS piping is an alternative to PVC piping, which consists of pipes made of a thermoplastic resin that has traditionally been used as drainpipes and water supply lines due to their shock resistance and strength, as well as their resistance to temperature fluctuations and decay. The company produces ABS piping for customers in this segment as an ODM. The key customers in ABS Piping are RLux RV LLC and Znergy Inc., which supply Forest River Inc.

    • Refrigerator LED lighting:

      IKIO Lighting Limited commenced its refrigerator LED lighting business in Fiscal 2016. The company produces refrigerator LED lighting for customers in this segment as an ODM. The key customers in refrigerator LED lighting are Voltas Limited, Frigoglass India Private Limited, and Western refrigeration Private Limited.

    • Other Products:

      IKIO Lighting Limited produces fan regulators and switches for customers in this segment under ODM and assembly business models. The key customers in this product category are Honeywell, Anchor Panasonic, Le-grand, and Signify (Philips). Additionally, the company manufactures and assembles light strips, moldings, and fittings, as well as other component parts that are utilized among the other product offerings.

    IKIO Lighting Limited IPO Product segment analysis:

    Segment FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) % CAGR
    LED Lighting 287.98 86.78 186.3 87.26 187.68 85.21 15.3%
    ABS Pipes 5.09 1.53 0.0 0.00 0.00 0.00 Not applicable
    Refrigerator Lights 13.35 4.02 8.3 3.87 13.43 6.10 -0.2%
    Others 25.43 7.66 18.9 8.87 19.13 8.69 9.9%
    Total 331.84 100.00 213.45 100.00 220.25 100.00 14.6%

    IKIO Lighting Limited IPO Details:

    IPO Open Date Not Disclosed
    IPO Close Date Not Disclosed
    Listing Date Not Disclosed
    Face Value ₹10 per share
    Price Not Disclosed
    Lot Size Not Disclosed
    Issue Size [●] shares
    (aggregating up to [●] Cr)
    Fresh Issue [●] shares

    (aggregating up to ₹350.00 Cr)

    Offer for Sale 7,500,000 shares

    (aggregating up to [●])

    Issue Type Book Built Issue IPO
    Listing At BSE, NSE
    QIB Shares Offered Not more than 50% of the Offer
    NII (HNI) Shares Offered Not less than 15% of the Offer
    Retail Shares Offered Not less than 35% of the Offer
    Company Promoters Hardeep Singh, and Surmeet Kaur

    IKIO Lighting Limited IPO Financial analysis:

    Particulars FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) CAGR
    Revenue from operations 331.8 213.4 220.2 14.6%
    Other Income 2.2 1.1 1.6  
    Cost Of Goods Sold 192.2 120.4 139.2  
    Employee Cost 42.3 29.4 28.7
    Other expenses 20.0 15.8 15.0
    EBITDA 79.47 48.94 38.89 26.9%
    EBITDA margin% 23.95% 22.93% 17.66%  
    Depreciation 5.08 4.69 4.07
    Interest 4.92 4.37 4.64
    PBT 69.47 39.88 30.18 32.0%
    Total tax 18.95 11.08 8.77
    PAT 50.52 28.81 21.41 33.1%
    PAT margin% 15.12% 13.42% 9.65%  
    Dep./revenue% 1.53% 2.19% 1.85%
    Int./revenue% 1.48% 2.05% 2.11%

    Pre-Offer shareholding of the Selling Shareholders:

    S. No. Name of the Selling Shareholder No. of Equity Shares

    held

    Percentage of the pre-Offer paid

    Up equity share capital (%)

    1. Hardeep Singh 38,999,142 60.00%
    2. Surmeet Kaur 26,000,000 40.00%
    Total   64,999,142 100.00%

    Offer for Sale Details:

    S. No. Name of the Selling Shareholder Number of Equity Shares

    being offered in the Offer for Sale (Up to)

    1. Hardeep Singh 6,000,000 Equity Shares
    2. Surmeet Kaur 1,500,000 Equity Shares

    IKIO Lighting Limited IPO Strengths:

    • With a proven operational and financial track record, IKIO Lighting Limited is well-positioned to capitalize on opportunities provided by the tailwinds in the LED lighting market driven in part by governmental policies for energy saving and environment protection and importantly, the increasing awareness and adoption of LED lighting versus incandescent lighting. The number of LED lighting products manufactured has grown by 41.82% from 660 in Fiscal 2020 to 936 in Fiscal 2022, and the company is continuously expanding its portfolio. As on March 31, 2022, and March 31, 2021, and March 31, 2020, the total annual installed capacity of LED Lights is 20.31 million pieces, 17.13 million pieces, and 11.10 million pieces, respectively.

    • IKIO Lighting Limited currently manufactures more than 600 SKUs for its largest customer, Signify (Philips) in India. In addition, the company is in negotiations with some of its existing customers to supply LED home lighting products to its international supply chain. The diverse product offering allows the company to cater to the increasing requirements of the customers, and, more importantly, it is able to supply a larger portion of the products needed by the customers in their project engagements.

    • IKIO Lighting Limited has a history of high customer retention. In Fiscal 2022, the company derived approximately 93.56% of its restated revenues from operations from repeat customers (defined as customers from which we have had revenues in the past three fiscal years). In Fiscal 2022, the company derived 78.81% of its proforma consolidated revenues from operations from repeat customers (defined as customers from which we have had revenues in the past three fiscal years).

    • IKIO Lighting Limited R&D department focuses on product designing, tools, and mould designing, electronic circuit designing, and prototype designing. The R&D department independently develops ODM designs and verifies and develops OEM designs received from customers and converts such designs into deliverable products by improving the designs, recommending suitable raw materials, and testing trial products. This enables the company to address consumers’ diverse needs, introduce new and innovative products in the market, enhance existing products with emerging technologies, and optimize costs across products through value analysis and value engineering.

    • IKIO Lighting Limited’s presence in product segments with growing demand, a top-tier global customer base in their respective industries, and a continuous focus on efficiency and productivity has enabled the company to deliver consistent and strong financial performance.

    IKIO Lighting Limited IPO Risk factors:

    • IKIO Lighting Limited is dependent on, and derives a substantial portion of its revenue from, a single customer, Signify Innovations India Limited, erstwhile Philips India, and over 85% of its revenue is derived from the top twenty customers. Cancellation by the top customers or delay or reduction in their orders could have a material adverse effect on the business, results of operations, and financial condition of the company.

    • The markets in which the customers of IKIO Lighting Limited compete are characterized by consumers and their rapidly changing preferences and other related factors including alternatives available at lower costs. If the company is unable to keep up with the requirements of the customers in a timely manner or at all, it may adversely affect the business, results of operations, and financial condition of the company.

    • IKIO Lighting Limited relies on a number of third-party suppliers for its key components, materials, and stock-in-trade as well as customer support services including product repairs and returns. Any shortfall in the supply of the components and raw materials or an increase in the component or raw material costs, or other input costs, may adversely affect the pricing and supply of the products and have an adverse effect on the business, results of operations, and financial condition of the company.

    • IKIO Lighting Limited has incurred significant capital expenditure during the last three Fiscal Years. The company may require substantial financing for its business operations and planned capital expenditure and the failure to obtain additional financing on terms commercially acceptable to the company may adversely affect its ability to grow and its future profitability.

    IKIO Lighting Limited IPO Objects of the Offer:

    The company proposes to utilize the Net Proceeds towards funding the following objects:

    • Repayment/ prepayment,  in  full  or  part,  of  certain  borrowings  availed  by  the  Company  and  its  Subsidiaries  on a consolidated basis;

    • Investment in the wholly owned subsidiary of the company, IKIO Solutions Private Limited, for setting up a new facility at Noida, Uttar Pradesh; and

    • General corporate purposes

    IKIO Lighting Limited IPO Prospectus :

    Registrar to the offer:

    KFin Technologies Limited

    Contact Person: M Murli Krishna

    Tel: +914067162222/18003094001

    E-mail: IKIO Lighting.ipo@kfintech.com

     

     

     

    IKIO Lighting Limited IPO FAQ

    Ans.IKIO Lighting Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.

    Ans. The IKIO Lighting Limited IPO opens on <>.

    Ans. The minimum lot size that investors can subscribe to is <> shares.

    Ans. The IKIO Lighting Limited IPO listing date is not yet announced.

    Ans. The minimum lot size for this upcoming IPO is <> shares.