The public offering consists of a new issue of equity shares up to Rs 350 billion and an offer-for-sale (OFS) of equity shares up to 7,500,000 by the promoter and selling shareholders, including up to 6,000,000 by the promoter Hardeep Singh and up to 1,500,000 by the promoter Surmeet Kaur ("Selling Shareholders").

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

 

A preferential issuance or any other strategy totaling up to Rs. 50 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.

 

On a combined basis, the proceeds from the new issuance worth Rs. 50 crore will be used to pay back or prepay, in full or in part, a number of borrowings taken out by the company and its subsidiaries. Additionally, Rs. 236.68 crore will be invested in the company's wholly owned subsidiary, IKIO Solutions Private Limited, in order to build a new facility in Noida, Uttar Pradesh, as well as for general corporate purposes.

Light-emitting diode ("LED") lighting products are produced in India by IKIO Lighting Limited. The business is committed to sustainability and offers low-energy LED products to aid India in achieving its sustainability objectives. As an original design manufacturer (or "ODM"), they typically create, develop, produce, and provide goods to clients who subsequently resell those goods under their own brands.

 

IKIO also works with its customers to develop, manufacture and supply products that are designed by our customers. Its products are categorised as LED lighting; refrigeration lights; ABS (acrylonitrile butadiene styrene) piping; and other products. The company's LED lighting offerings focus on the premium segment and include lighting, fittings, fixtures, accessories and components. We provide lighting solutions (lights, drivers, and controls) to commercial refrigeration equipment suppliers under our refrigeration light segment.

The company'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). (Source: F&S Report, September 2022).

 

IKIO has a history of high customer retention. In Fiscal 2022, the 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, IKIO 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). In Fiscal 2022, IKIO enjoyed relationships of over three years with seven out of these top ten customers. In addition, the company is building an international customer base, primarily in the United States.

 

IKIO's manufacturing operations are a key driver of its business. The company has four manufacturing facilities with one located in the SIDCUL Haridwar industrial park in Uttarakhand and three in Noida in the National Capital Region. The company's focus is to provide end-to-end product solutions and to develop better control of its supply chain and improve its margins, the company is backward integrated with its major manufacturing processes. They have developed in-house capabilities so that we manufacture all mechanical components inhouse (save diodes and resistors).