Neolite ZKW Lightings Files ₹600 Crore IPO with SEBI

Neolite ZKW Lightings Limited has submitted its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering aggregating up to ₹600 crore. The company manufactures and supplies automotive lighting products and components to original equipment manufacturers globally.

The IPO comprises a fresh issue of equity shares worth ₹400 crore and an offer for sale of ₹200 crore by existing shareholders. The selling shareholders include founder Rajesh Jain (₹114 crore), Neokraft Global Private Limited (₹40 crore), and ZKW Group GmbH (₹46 crore). The company may also consider a pre-IPO placement of up to ₹75 crore.

According to a CRISIL report, Neolite ZKW holds a market share of 34.43% in the domestic commercial vehicle lighting segment as of Fiscal 2025, positioning it among the leading players in this space.

Incorporated in 1992, the company operates under the leadership of founder Rajesh Jain and CEO Rajesh Soni. It maintains a strategic alliance with ZKW Group GmbH, which became a subsidiary of LG Electronics in 2018. This collaboration, which began in 2012, has strengthened the company's technical capabilities and geographic reach.

The net proceeds from the fresh issue will be allocated toward establishing a greenfield manufacturing facility in Kancheepuram, Tamil Nadu (₹152.51 crore), purchasing plant and machinery for existing facilities (₹79.08 crore), and repaying outstanding borrowings (₹65 crore). Remaining funds will support general corporate purposes.

As of October 31, 2025, Neolite ZKW served over 40 OEMs and offered more than 830 stock keeping units, including LED and electric vehicle-focused lighting solutions. The company operates three manufacturing facilities located in Bahadurgarh, Haryana, and Pune, Maharashtra.

The customer base spans passenger vehicles, commercial vehicles, electric vehicles, three-wheelers, off-road vehicles, and aftermarket segments. Key clients include Tata Motors Limited, Stellantis Automobiles India Private Limited, JSW MG Motor India Private Limited, Daimler India Commercial Vehicles Private Limited, and VE Commercial Vehicles Limited, among others.

The company exports to over 50 countries across CIS regions, North America, and Western Europe. As of October 31, 2025, it had an order book of ₹171.88 crore expected to be executed by March 31, 2027.

For the three months ended June 30, 2025, revenue from operations stood at ₹124.86 crore, with exports contributing 55.08% and domestic sales 44.92%. In Fiscal 2025, revenue reached ₹512.08 crore, with exports at ₹237.35 crore (46.35%) and domestic revenues at ₹274.72 crore (53.65%).

The company reported improved profitability metrics, with gross profit margin rising to 49.18% in Fiscal 2025 from 37.84% in Fiscal 2023. Operating EBITDA increased to ₹96.46 crore in Fiscal 2025 from ₹41.55 crore in Fiscal 2023, with margins expanding to 18.84% from 10.25%. Profit after tax grew to ₹52.82 crore in Fiscal 2025 from ₹15.59 crore in Fiscal 2023, reflecting a PAT margin of 10.32%.

Return on equity and return on capital employed stood at 33.90% and 31.12%, respectively, in Fiscal 2025, indicating improved capital efficiency.

Anand Rathi Advisors Limited and Systematix Corporate Services Limited are serving as the Book Running Lead Managers for the issue.