Upcoming IPO: Neolite ZKW Lightings Files Draft Papers with SEBI to Raise ₹600 Crore

Neolite ZKW Lightings has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise ₹600 crore through an initial public offering (IPO).  

The proposed IPO consists of a fresh issue of equity shares worth up to ₹400 crore and an offer for sale (OFS) of shares worth ₹200 crore by promoters and one shareholder. 

As part of the OFS, promoter Rajesh Jain plans to sell shares valued at ₹114 crore, while Neokraft Global will divest shares worth ₹40 crore. Existing shareholder ZKW Group GmbH will offload shares amounting to ₹46 crore.  

The company may also raise up to ₹75 crore through a pre-IPO placement, which would reduce the size of the fresh issue. 

Use of Funds and Borrowings 

According to the draft red herring prospectus, a portion of the fresh issue proceeds will be used for capacity expansion. The company has earmarked ₹152.5 crore for setting up a new manufacturing facility at Kancheepuram in Tamil Nadu.  

Another ₹79 crore will be used to purchase plant and machinery, including SMT lines and testing equipment, at existing facilities. 

In addition, ₹65 crore has been allocated for repayment of debt. As of March 2025, Neolite ZKW Lightings reported total borrowings of ₹97 crore. The remaining proceeds will be used for general corporate purposes. 

Business Operations 

Founded in 1992, Neolite ZKW Lightings manufactures automotive lighting products for passenger vehicles, commercial vehicles, 2-wheelers, 3-wheelers and off-road vehicles. The company operates 3 manufacturing units located in Bahadurgarh, Haryana, and Pune, Maharashtra. 

Neolite ZKW has an alliance with Austria-based ZKW Group GmbH, which became a subsidiary of LG Electronics in 2018. The association allows the company to use certain product designs and technologies for the Indian market. 

Customers, Exports and Orders 

As of October 31, 2025, the company served over 40 original equipment manufacturers and had a portfolio of more than 830 stock keeping units.  

Its customers include Tata Motors, Daimler India Commercial Vehicles, JSW MG Motor India, Stellantis Automobiles India, JCB India and Piaggio Vehicles. 

The company exports products to over 50 countries across North America, Western Europe and CIS regions. Its order book stood at ₹172 crore as of October 2025, with execution planned up to FY27. 

Financials and Issue Management 

In FY25, revenue from operations rose to ₹512 crore from ₹403 crore a year earlier. Profit after tax increased to ₹53 crore from ₹19 crore. Anand Rathi Advisors and Systematix Corporate Services are the book-running lead managers to the issue. 

Read More: Zepto Pre-Filed Draft IPO Papers with SEBI: Eyeing Debut on Dalal Street Next Year ! 

Conclusion  

The draft prospectus details the company’s plans for fund utilisation, share sale by promoters and financial position. The IPO will proceed subject to SEBI clearance and completion of the issue process. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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