The India-based company manufactures light-emitting diodes for LED lighting solutions. IKIO Lighting is an original design manufacturer (ODM), focused on sustainability and low-energy LED products. The company’s operations involve designing, developing, manufacturing, and supplying LED lighting solutions to customers.
A diversified product portfolio covers the products mentioned below.
- LED lighting
- Refrigerator lights
- Acrylonitrile butadiene styrene piping
- Other products
Western Refrigeration Pvt. Ltd., Panasonic Life Solutions India Pvt. Ltd., Novateur Electrical & Digital Systems Pvt. Ltd., and Signify Innovations India Ltd. are some of the eminent customers of IKIO Lighting. Its largest customer, Signify Innovations India Ltd. or Philips Electronics India Ltd. (previously), held a 50% market share in India’s functional decorative lighting category in FY 2022 (a report by Frost & Sullivan).
The company has four manufacturing facilities - Haridwar Industrial Park in Uttarakhand (1), and Noida, UP (3).
IKIO Lighting Limited IPO Details
IKIO Lighting IPO is a combination of fresh shares and an offer for sale of equities. The company plans to raise Rs. 350 crore from fresh issues, while the selling promoters will offload 75 lakh equity shares from their reserves. Details of IKIO Lighting IPO price and date are not yet announced.
IKIO Lighting Limited IPO Objective
The key objectives of the IPO are the following.
- Repayment/prepayment of certain market borrowings.
- Investing in the wholly-owned subsidiary to set up a new facility in Noida, Uttar Pradesh.
- To meet general corporate purposes.
Should you invest in IKIO Lighting Limited?
Here are a few key reasons to consider before investing in the IPO:
- The company has a strong track record of building long-term relationships and retaining customers.
- IKIO Lighting is well-positioned to capitalise on the growth of the LED market, supported by the government’s energy savings and efficiency policies.
- The company has increased its lighting product portfolio from 660 in fiscal 2020 to 936 in fiscal 2022, a growth of 41.82%.
- The company had catered to 900 domestic and 6 international customers in the last three fiscal years.
Competitive Peers
The other players in the segment as recognised by the company are Dixon Technologies (India) Ltd., Amber Enterprises India Ltd., and Syrma SGS Technology Ltd.
Noteworthy Highlights of IKIO Lighting Limited
- 93.56% of the company’s restated revenue from operations in FY 2022 was generated by repeat customers.
- It had a total annual installed capacity of 20.31 million pieces of LED lights in 2022.
IKIO Lighting Ltd Company Financials
| Particulars | Year ending on March 31, 2022 (₹ Lakh) | Total ExpeYear ending on March 31, 2021 (₹ Lakh)nse |
|---|---|---|
| Revenue from Operations | 2,198.95 | 1,596.63 |
| Profit After Tax (PAT) | 280.10 | 205.80 |
| PAT Margin | 12.69% | 12.86% |
| EBITDA | 401.50 | 302.82 |
| EBITDA Margin | 18.26% | 18.97% |
| ROE | 36.64% | 42.59% |
Know before investing
Strengths
3It offers a diversified product portfolio, including LED lights, ABS pipes, refrigerator lights, and others.
The company enjoys long-term relationships of 3 years or more with 7 of its top 10 customers.
It’s supported by a robust R&D department, involved in module, electronic circuit, and prototype design.
Risks
3The company depends on a few customers for a major portion of its revenue.
The loss of key customers in the future can impact the brand’s operational and financial performance.
The business is heavily dependent on and will continue to rely on manufacturing facilities to continue operating.
