IKIO Lighting IPO listing: Stock lists at a premium of 37% on NSE

Shares of IKIO Lighting listed at an 41% premium on the bourses today, opening at Rs 403 apiece.

IKIO Lighting's IPO opens for subscription on Tuesday, with the price band set at ₹270 to ₹285 per share. Most brokerages have assigned 'Subscribe' ratings to the IPO for the long term, citing strong business models and fair valuations.

IKIO Lighting IPO Subscription Status: The IPO has been subscribed 71% on the first day of the sale, according to BSE data. The majority of brokerages have given the IPO a ‘subscribe’ rating due to its solid business model and reasonable pricing.

Ikio Lighting's shares listed at a premium of 38% over the issue price of INR 285 and rallied further to trade at INR 404 on BSE. Analysts suggest investors hold the stock as the company has lucrative business opportunities and a consistent financial performance. They advise that the stock has higher growth potentials and suggest holding the stock for medium to long-term, keeping a stop loss of 10% below its listing price. The Rs 607 crore IPO with a fresh issue of Rs 350 crore received a tremendous response from investors and got subscribed 67 times.

As of 11:50 am, the public issue has been subscribed 1.77 times. The retail category displayed exceptional demand, oversubscribed by 7.01 times, while the Non-Institutional Investors (NII) portion garnered bids 1.67 times.

The stock is currently trading nearly 8% down at Rs 396.90 on BSE. It hit the day's low of Rs 387.75, translating into a fall of 11% from IPO price. The tepid listing was expected after the downtrend in company shares in the unlisted market since the IPO opened for subscription. The issue was subscribed 2.21 times at close

IKIO Lighting’s export revenue has grown rapidly in the last four years on a low base and new customer acquisitions. The company added a new product line for recreational vehicles in the export division which led to such expansion.

The NII part was subscribed 1.89 times so far, while there were no bids from qualified institutional buyers. According to market sources, the company's shares are commanding a premium of Rs 525-530 in the unlisted market, indicating big listing gains for investors if the trends sustain.

Utkarsh Small Finance Bank's IPO has been subscribed 10.67 so far times on Day 2, with strong response from retail and non institutional investors.

R K Swamy's IPO comprises a fresh issue of ₹173 crore and an offer-for-sale of up to 8,700,000 equity shares. Proceeds will fund working capital, digital video studio, IT infrastructure, customer experience centers, and more.