The electronics manufacturing services (EMS) market supporting the domestic LED lighting market has also grown by 21.5 percent CAGR during FY18-22 to Rs 4,800 crore and is expected to grow by 27 percent CAGR over FY22-26 to a size of Rs 12,500 crore, according to RHP.
Image-: Free Press Journal
IKIO Lighting dazzled investors on June 16, exceeding analysts’ predictions with a 37 percent surge above its issue price. The stock erupted on the NSE and BSE, igniting at Rs 391 compared to its original price of Rs 285. Investors clamored for a piece of the pie, with the public issue of Noida-based IKIO subscribed a mind-boggling 66.30 times during June 6-8. Qualified institutional buyers’ reserved portion was booked a staggering 163.58 times, while high net-worth individuals and retail investors were left fighting over scraps, with 63.35 and 13.86 times subscriptions, respectively.
Analysts had predicted a premium of 30-35 percent, but the stock was trading for an even higher price in the grey market before its debut. However, the grey market premium dropped in the last few days, reaching a peak of Rs 125 or 44 percent over the issue price. IKIO raised Rs 606.5 crore through its public issue, at the upper end of its price band of Rs 270-285 per share. The fresh issue of Rs 350 crore will be used to fund its LED lighting, refrigeration lights, ABS (acrylonitrile butadiene styrene) piping, and other products.
As population growth and urbanization continue, demand for environmentally sustainable and cost-effective lighting solutions has skyrocketed, leading to a rapid increase in the market for LED lighting. The domestic LED lighting market has grown by 12.4 percent CAGR to Rs 21,708 crore during FY18-22. Further, the domestic LED lighting market is expected to increase by 11.7 percent CAGR over FY22-26 to reach a size of Rs 33,820 crore, with improved applications across the residential, commercial, and industrial sectors. The electronics manufacturing services (EMS) market supporting the domestic LED lighting market has also grown by 21.5 percent CAGR during FY18-22 to Rs 4,800 crore and is expected to grow by 27 percent CAGR over FY22-26 to a size of Rs 12,500 crore, according to RHP.
