IKIO Lighting IPO

May 16, 2023

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IKIO Lightings Ltd. is an integrated player providing original design manufacture services in the LED lighting segment. The company's LED lighting offerings focus on the premium segment and include lighting, fittings, fixtures, accessories and components.

IKIO's business segment includes: LED lighting, refrigeration lights, ABS piping and other products. LED lighting contributes ~87% to overall revenue.

Signify (Philips) is one of the major clients of the company in LED lighting segment. IKIO is largely into manufacturing premium products. It reported strong revenue, earning compound annual growth rate of ~23%, ~54% in FY20-22, respectively.

Key triggers/Highlights:

Government incentives, China plus one strategy to drive growth of domestic LED lighting EMS industry.

Rising aspirations, incomes to drive high end home and decorative lighting.

Focus on expansion into high margin product categories.

Brownfield expansion through IPO proceeds to drive future revenue growth.

Long term relationships with leading industry customers.

Leveraging existing customer base to push export revenue.

Key risk and concerns

High customer concentration.

Dependency on single product category.

High dependency on imports for supply of raw materials.

Has a high working capital.

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