Neolite ZKW Lightings Files ₹600 Crore IPO Application with Sebi for Market Debut
Neolite ZKW Lightings Limited has filed its DRHP with Sebi for a ₹600 crore IPO, comprising ₹400 crore fresh issue and ₹200 crore OFS by promoters. The automotive lighting manufacturer, incorporated in 1992, holds 34.43% market share in India's commercial vehicle lighting segment and serves over 40 OEMs. The company reported strong financial performance with revenue of ₹512 crore in FY25 and significant profitability improvements, including PAT growth to ₹52.82 crore from ₹15.58 crore in FY23.
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Neolite ZKW Lightings Limited, a prominent automotive lighting products and components manufacturer, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) for its maiden public offering worth ₹600 crore. The company aims to leverage the capital markets to fund its expansion plans and strengthen its market position in the automotive lighting sector.
IPO Structure and Shareholding Details
The public offering is structured as a combination of fresh capital raising and existing shareholder divestment. The company has designed the issue to balance growth capital requirements with partial exit opportunities for current investors.
| Component | Amount (₹ crore) | Details |
|---|---|---|
| Fresh Issue | 400.00 | New equity shares for company |
| Offer for Sale | 200.00 | Existing shareholder divestment |
| Total Issue Size | 600.00 | Combined offering |
The offer for sale will see three key promoters reducing their stakes. Rajesh Jain will divest shares worth ₹114 crore, while Neokraft Global Private Limited and ZKW Group GmbH will sell stakes valued at ₹40 crore and ₹46 crore respectively. Additionally, the company may consider a pre-IPO placement of up to ₹75 crore in consultation with the Book Running Lead Managers.
Company Profile and Market Position
Incorporated in 1992, Neolite ZKW Lightings has established itself as a significant player in the automotive lighting industry. The company operates as a manufacturer and global supplier of automotive lighting products and components for original equipment manufacturers (OEMs). According to a CRISIL report cited in the DRHP, the company commands a substantial 34.43% market share in India's domestic commercial vehicle lighting segment for fiscal 2025.
The company maintains a strategic alliance with ZKW Group GmbH, which became a subsidiary of LG Electronics in 2018. As of October 31, 2025, Neolite ZKW Lightings serves over 40 OEMs and offers an extensive portfolio of more than 830 stock keeping units (SKUs), including LED and electric vehicle-focused lighting solutions.
Customer Base and Market Reach
Neolite ZKW Lightings has built a diversified customer portfolio spanning major automotive manufacturers. The company's client base includes several prominent names in the Indian automotive sector:
- Tata Motors Limited
- Stellantis Automobiles India Private Limited
- JSW MG Motor India Private Limited
- Daimler India Commercial Vehicles Private Limited
- VE Commercial Vehicles Limited
- Isuzu Motors
Fund Utilization Strategy
The company has outlined a comprehensive plan for deploying the net proceeds from the fresh issue across multiple growth and operational initiatives.
| Purpose | Amount (₹ crore) | Description |
|---|---|---|
| New Manufacturing Facility | 152.51 | Greenfield facility in Kancheepuram, Tamil Nadu |
| Equipment & Expansion | 79.00 | Plant & machinery, electronic expansion |
| Debt Repayment | 65.00 | Outstanding borrowings settlement |
| General Corporate Purposes | Balance | Remaining proceeds allocation |
Financial Performance and Growth Trajectory
Neolite ZKW Lightings has demonstrated strong financial performance with significant improvements in profitability metrics. For the three-month period ending June 30, 2025, the company reported revenue from operations of ₹124.85 crore, with exports contributing 55.08% and domestic sales accounting for 44.92% of total revenue.
The company's annual performance shows robust growth, with revenue from operations reaching ₹512 crore in Fiscal 2025. Profitability metrics have improved substantially across multiple parameters:
| Financial Metric | FY25 | FY23 | Improvement |
|---|---|---|---|
| Gross Profit Margin | 49.18% | 37.84% | +11.34 percentage points |
| Operating EBITDA | ₹96.46 cr | ₹41.55 cr | +132.19% |
| Operating EBITDA Margin | 18.84% | 10.25% | +8.59 percentage points |
| Profit After Tax | ₹52.82 cr | ₹15.58 cr | +239.03% |
| PAT Margin | 10.32% | - | Strong profitability |
As of October 31, 2025, the company maintains a healthy order book of ₹171.87 crore, which is scheduled for execution by the financial year ending March 31, 2027.
Issue Management
Anand Rathi Advisors Limited and Systematix Corporate Services Limited have been appointed as the Book Running Lead Managers for the public offering, bringing their expertise in capital market transactions to facilitate the company's market debut.
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