Indian automotive lighting products manufacturer Neolite ZKW Lightings has taken a significant step towards going public. The company has submitted a Draft Red Herring Prospectus (DRHP) with market regulators for an initial public offering (IPO) worth ₹600 crore.
IPO Structure and Fund Utilisation
The proposed ₹600 crore IPO is a mix of a fresh issue of equity shares and an offer for sale (OFS). The fresh issue component aims to raise ₹400 crore, while the OFS from existing shareholders will account for the remaining ₹200 crore.
The company plans to deploy the net proceeds from the fresh issue for several strategic purposes. A major portion will finance the capital expenditure for establishing a new greenfield manufacturing facility in Kancheepuram, Tamil Nadu. Funds are also earmarked for purchasing plant and machinery, SMT lines, and testing equipment to upgrade and expand the existing Unit 1 manufacturing plant.
Furthermore, a part of the proceeds will be used to repay certain outstanding borrowings, which will strengthen the company's balance sheet. The remaining amount is designated for general corporate purposes to support ongoing operations.
Business Overview and Market Position
Neolite ZKW Lightings is a prominent player in the automotive lighting sector. The company manufactures and supplies lighting products and components directly to original equipment manufacturers (OEMs). Its portfolio serves a wide range of vehicle categories, including passenger vehicles (PVs), commercial vehicles (CVs), three-wheelers (3Ws), and two-wheelers (2Ws). Additionally, the company has a presence in the aftermarket segment for automotive lighting.
According to a CRISIL report cited in the DRHP, Neolite ZKW holds a dominant 34.43% market share in the domestic commercial vehicle lighting segment for FY25. The company is also a key exporter, shipping products to over 50 countries across regions like CIS, North America, and Western Europe.
As of October 31, 2025, the company supplies its products to 38 OEMs within India and 6 OEMs globally through its export channels.
Financial Performance and Advisors
The company has demonstrated strong financial growth in recent years. Its profit after tax has shown a consistent upward trajectory, rising from ₹15.6 crore in FY23 to ₹19.1 crore in FY24, and further jumping to ₹52.8 crore in FY25.
Revenue from operations has also been robust, standing at ₹405.4 crore in FY23, ₹403 crore in FY24, and increasing to ₹512.1 crore in FY25.
The book-running lead managers for the issue are Anand Rathi Advisors Limited and Systematix Corporate Services Limited. KFin Technologies Limited has been appointed as the registrar to the issue, responsible for processing applications and allotments.
The IPO marks a pivotal moment for Neolite ZKW Lightings, providing capital to scale manufacturing capacity, reduce debt, and solidify its position as a leader in the automotive components industry.
