On June 16, the stock of the consumer electronics company made market debut with a 42 per cent gain. With today’s rally, the stock has zoomed 67 per cent over its issue price of Rs 285 per share.
IKIO is an integrated player providing original design manufacture (ODM) services in the LED lighting segment. LED lighting contributes around 87 per cent to overall revenue. The company’s LED lighting offerings focus on the premium segment and include lighting, fittings, fixtures, accessories and components.
The initial public offering (IPO) of IKIO saw a strong demand with the issue getting subscribed 67.75 times. The institutional investor portion was subscribed 163.06 times, the high net worth individual (HNI) portion was subscribed 65.38 times, and the retail institutional investor (RII) portion by 14.31 times.
“Considering the company’s strong focus on research and development (R&D), backward integration, well-established relationship with clients, and the company’s consistent financial performance, we suggest investors to hold this share for a longer period by keeping a stop loss 10 per cent below its listing price,” said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.
IKIO boasts a diverse customer base, including significant clients such as Signify Innovations India Limited (formerly Philips Electronics India Limited), Western Refrigeration Private Limited, Panasonic Life Solutions India Private Limited, and Novateur Electrical & Digital Systems Private Limited. The company places great emphasis on research and development (R&D), maintaining a dedicated team focused on product design, electronic circuit design, and prototype development.
“IKIO is well poised to capture growth of LED market with diverse product basket & focus on high-margin areas. Company enjoys long-term relationships with leading industry customers& has strong focus on R&D. We like the company as it has established infrastructure with backward integration along with strong and consistent financial performance,” Hem Securities had said in its IPO note.
