Automotive lighting products and components manufacturer Neolite ZKW Lightings has filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 29 to raise Rs 600 crore through an initial public offering (IPO).
The proposed IPO consists of a fresh issue of equity shares worth Rs 400 crore and an offer-for-sale (OFS) of shares worth Rs 200 crore by existing shareholders, including Rajesh Jain, Neokraft Global, and ZKW Group GmbH.
Post the issue, the company’s promoters—Rajesh Jain, Pramod Plastic Industries, and Neokraft Global—currently hold a combined 77.38 percent stake, while ZKW Group GmbH, a subsidiary of LG Electronics, owns the remaining 22.62 percent.
Based in Haryana, Neolite ZKW Lightings has a strategic alliance with Austria-headquartered ZKW Group GmbH, which became part of the LG Electronics group in 2018. The partnership provides Neolite access to advanced lighting technologies and engineering expertise. Founded in 1938, ZKW Group is a global supplier of high-end LED and laser headlamp systems to leading automobile manufacturers such as BMW and Audi.
The company may also explore raising up to Rs 75 crore through a pre-IPO placement, which would be part of the fresh issue component, according to the draft papers.
Neolite ZKW Lightings plans to deploy Rs 152.5 crore from the fresh issue proceeds towards setting up a new greenfield manufacturing facility in Kancheepuram, Tamil Nadu. An additional Rs 79 crore will be used for the purchase of plant and machinery, surface-mount technology (SMT) lines, and testing equipment to expand and upgrade its existing Unit 1 facility. About Rs 65 crore is earmarked for debt repayment, while the balance will be used for general corporate purposes.
The company, which claims leadership in the domestic commercial vehicle lighting segment, has posted a strong financial performance in recent periods. Its profit for FY25 surged 177.2 percent to Rs 52.8 crore, compared with Rs 19 crore in the previous fiscal, while revenue rose 27 percent to Rs 512 crore from Rs 403 crore.
For the quarter ended June 2025, Neolite ZKW Lightings reported a profit of Rs 22.2 crore on a revenue of Rs 124.8 crore.
The IPO is being managed by Anand Rathi Advisors and Systematix Corporate Services as the book-running lead managers.
