Neolite ZKW Lightings Ltd, a maker of car lights, has applied for a big public offering that could bring in ₹600 crore.
Company snapshot
Founded in 1992, Neolite ZKW supplies lighting products and components to many automobile manufacturers. It works with over 40 OEMs, including Tata Motors, Stellantis, JSW MG Motor, Daimler India and Isuzu. The firm offers more than 830 different LED and electric‑vehicle lighting solutions.
IPO structure
- Fresh issue: Up to ₹400 crore of new equity shares.
- Offer‑for‑sale (OFS): ₹200 crore of shares from existing promoters.
- Promoter sell‑off:
- Rajesh Jain – up to ₹114 crore.
- Neokraft Global Pvt Ltd – up to ₹40 crore.
- ZKW Group GmbH – up to ₹46 crore.
- Possible pre‑IPO placement: Up to ₹75 crore, subject to final agreement with lead managers.
How the money will be used
- ₹152.5 crore to build a new greenfield plant in Kancheepuram, Tamil Nadu.
- ₹79 crore for new plant‑and‑machinery and upgrades at existing factories.
- Up to ₹65 crore to repay some outstanding loans.
- Any remaining amount will go toward general corporate needs.
Recent financial performance
- Revenue (Q2 FY25): ₹124.85 crore, with 55% from exports.
- Full‑year FY25 revenue: ₹512 crore.
- Gross profit margin rose to 49.18% (from 37.84% in FY23).
- EBITDA grew to ₹96.46 crore, an 18.84% margin.
- Profit after tax reached ₹52.82 crore, a 10.32% PAT margin.
Order book and outlook
As of the end of October 2025, the company had orders worth ₹171.87 crore, expected to be fulfilled by March 2027. The strong domestic market share (about 34% in commercial‑vehicle lighting) and the growing demand for LED and EV‑focused lights suggest continued growth.
Lead managers
Anand Rathi Advisors Ltd and Systematix Corporate Services Ltd are handling the book‑running for the issue.
Disclaimer
Remember, this is an overview, not a recommendation. Do your own research and consider your risk tolerance before investing.