IKIO Lighting Ltd, the leading manufacturer of Light Emitting Diode, has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial public offering (IPO). According to the draft red herring prospectus (DRHP) – the IPO consists of a fresh issue of equity shares costs up to Rs 350 crore and an offer-for-sale (OFS) of more than 75 lakh equity shares by shareholders and promoters.

IKIO Lighting Limited is principally an original design manufacturer (ODM) that develops, designs, manufactures and supplies products to customers who later distribute them under their brand. The company has four manufacturing facilities, three out of four industries in Noida and one in the SIDCUL Haridwar industrial park in Uttarakhand.

The Proceeds from the fresh issuance worth Rs 50 crores would be used for the debt repayment as for August 2022, the total outstanding borrowing amounted to Rs 70 crore. And Rs 236.68 crore would be used towards the company’s entirely-owned subsidiary, IKIO Solutions, to establish a new facility at Noida, Uttar Pradesh.
For FY2022, the company’s revenue from operation stood at Rs 219.90 crores against Rs 159.66 crores of the previous year. For the financial year 2022, KIO Lighting’s revenue has surged by 55.47 per cent. Motilal Oswal Investment Advisors is the sole book runner for the issue.