IKIO Technologies' US Subsidiary Faces Challenges in Meeting $8 Million Business Target

IKIO Technologies Limited , a prominent player in the lighting and electronics industry, has reported that its wholly owned US subsidiary, Royalux LLC, has fallen short of its ambitious $8 million business target set in collaboration with Metco Engineering Inc.

Performance Overview

The company disclosed in a regulatory filing that Royalux LLC achieved sales of approximately $679,648.00 during the first six months of the Memorandum of Understanding (MOU) period with Metco Engineering Inc. This figure falls significantly below the projected $8 million target that was initially agreed upon.

Extended Performance and Challenges

Period	Sales (USD)
First 6 months	679,648.00
9 months (up to Sept 30, 2025)	1,047,648.00

The cumulative sales for the nine months ending September 30, 2025, reached $1,047,648.00. IKIO Technologies attributed the shortfall to two primary factors:

Slower operational ramp-up
Prevailing market conditions in the US, particularly the impact of tariffs imposed by the US government

Future Outlook

While IKIO Technologies maintains that Royalux LLC and Metco Engineering Inc. continue to have a positive business relationship, the company expressed uncertainty regarding the achievement of the remaining pending orders in the coming months.

Implications

This development highlights the challenges faced by Indian companies expanding into international markets, particularly in navigating complex trade environments and adapting to local market conditions. The impact of US tariffs on the performance of Royalux LLC underscores the importance of considering geopolitical and economic factors in international business strategies.

Investors and stakeholders will likely be watching closely to see how IKIO Technologies addresses these challenges and adjusts its strategies to improve its US subsidiary's performance in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.77%	-2.46%	-10.21%	-11.58%	-22.34%	-56.62%

IKIO Technologies Limited , formerly known as IKIO Lighting Limited, has submitted its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of proceeds from its Initial Public Offering (IPO) launched in June 2023.

IPO Proceeds Allocation and Utilization

The company raised a total of Rs 6,065.00 million through its IPO, comprising a fresh issuance of Rs 3,500.00 million (revised net proceeds of Rs 3,261.41 million) and an offer for sale of Rs 2,565.00 million. The proceeds were allocated across three main objectives:

Objective	Allocated Amount (Rs million)	Utilized Amount (Rs million)	Remaining Amount (Rs million)
Repayment of borrowings	500.00	500.00	0.00
Investment in wholly-owned subsidiary IKIO Solutions	2,123.12	1,420.30	702.82
General corporate purposes	638.29	637.78	0.51
Total	3,261.41	2,558.08	703.33

Key Highlights

Full Utilization for Debt Repayment: The company has fully utilized the allocated Rs 500.00 million for repayment or prepayment of certain borrowings.
Subsidiary Investment Progress: Out of the Rs 2,123.12 million allocated for investment in IKIO Solutions Private Limited to set up a new facility in Noida, Rs 1,420.30 million has been utilized.
General Corporate Purposes: Nearly all of the Rs 638.29 million allocated for general corporate purposes has been utilized, with only Rs 0.51 million remaining.

Unutilized Proceeds Management

The company has managed its unutilized proceeds as follows:

A total of Rs 736.38 million in unutilized proceeds is currently deployed in fixed deposits and bank accounts.
The majority of these funds are invested in fixed deposits with HDFC Bank, with maturity dates ranging from October 2025 to August 2026.
These fixed deposits are earning interest rates between 6.15% and 7.55%.

Compliance and Transparency

CRISIL Ratings Limited, appointed as the Monitoring Agency, has reported no deviations from the disclosed objects of the issue. The company has obtained all required government approvals related to the stated objectives.

Future Outlook

With a significant portion of the IPO proceeds already utilized, IKIO Technologies is positioned to leverage its investments, particularly in its new manufacturing facility through IKIO Solutions. The company's allocation of funds towards debt repayment and expansion initiatives demonstrates its approach to financial management and growth.

Investors may view this report as an indication of the company's commitment to transparent financial practices and adherence to its stated objectives post-IPO. As IKIO Technologies continues to deploy the remaining funds, particularly in its subsidiary's new facility, stakeholders will be observing the impact on the company's operational capabilities and market position in the consumer electronics sector.