Automotive lighting products and components maker Neolite ZKW Lightings, which is backed by LG Electronics subsidiary ZKW Group GmbH, has tapped capital markets on December 29 by filing preliminary papers with SEBI to raise Rs 600 crore via initial share sale.
The IPO comprises fresh issuance of shares worth Rs 400 crore, and an offer-for-sale of Rs 200 crore worth shares by existing shareholders - Rajesh Jain, Neokraft Global, and ZKW Group GmbH.
Promoters - Rajesh Jain, Pramod Plastic Industries, and Neokraft Global - held 77.38 percent stake in the company, while a 22.62 percent shares are owned by ZKW Group GmbH,
The Haryana-based company has an alliance with ZKW Group GMBH, which became a subsidiary of LG Electronics in 2018, getting access to its advanced technologies and engineering capabilities.
Founded in 1938, Austria-headquartered ZKW group provides high-tech LED and laser headlamps to marquee global OEMs such as BMW and Audi.
Neolite ZKW Lightings may consider raising funds up to Rs 75 crore in pre-IPO round, which is a part of fresh issue component.
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The company that claims the leader in domestic commercial vehicle lighting segment intends to utilise Rs 152.5 crore of fresh issue proceeds for setting up a new greenfield manufacturing facility at Kancheepuram, Tamil Nadu, and Rs 79 crore for purchase of plant and machinery, SMT lines and testing equipment for electronic expansion and upgradation of existing Unit 1 manufacturing facility.
Further, Rs 65 crore will be used for repayment of debt, and the remaining funds for general corporate purposes.
Neolite ZKW Lightings has recorded healthy financial performance in the recent past years with profit in the fiscal 2025 increasing sharply by 177.2 percent to Rs 52.8 crore compared to Rs 19 crore in previous financial year. Revenue during the same period jumped 27 percent to Rs 512 crore, up from Rs 403 crore.
Profit in the quarter ended June 2025 was at Rs 22.2 crore on topline of Rs 124.8 crore.
The merchant bankers managing the Neolite ZKW Lightings IPO are Anand Rathi Advisors, and Systematix Corporate Services.
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