Neolite ZKW Lightings Limited has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO), marking a significant milestone in the automotive lighting manufacturer's journey to go public. The company aims to raise ₹600.00 crore through this offering, positioning itself to tap into public markets for growth capital.

IPO Structure and Components

The proposed IPO comprises a strategic mix of fresh capital raising and existing shareholder divestment:

The fresh issue of ₹400.00 crore will enable the company to raise new capital for expansion initiatives and potential debt reduction. The Offer for Sale component of ₹200.00 crore allows existing shareholders to partially monetize their investments.

Regulatory Filing and Public Announcement

According to the public announcement dated December 30, 2025, the company has filed its DRHP dated December 29, 2025, with SEBI and stock exchanges. The filing includes comprehensive details about the company's operations, financial performance, and future growth strategies.

Strong Market Position

Neolite ZKW Lightings has established a commanding presence in the automotive lighting sector, particularly excelling in the commercial vehicle segment:

This substantial market share demonstrates the company's strong competitive position and established customer relationships in the commercial vehicle lighting space, which could be an attractive proposition for potential investors.

Company Background and Evolution

The company has undergone several transformations since its inception. Originally incorporated as "Praplasin Industries Private Limited" in 1992, it evolved through various name changes to become "Neolite ZKW Lightings Limited" following its recent conversion from private to public company status in December 2025.

Investment Considerations

The DRHP filing initiates a 21-day public comment period, during which stakeholders can provide feedback on the proposed offering. The company has made the document available across multiple platforms including its website, SEBI's portal, and stock exchange websites for transparency and public access.

As the IPO process progresses through regulatory reviews, market participants will closely monitor the company's detailed financials, growth strategies, and pricing mechanisms. The success of this offering could potentially influence other automotive component manufacturers considering similar public market entries.

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.

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.

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:

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.