Automotive lighting products and components company Neolite ZKW Lightings Limited has filed a Draft Red Herring Prospectus (DRHP) for its initial public offering (IPO) with the Securities and Exchange Board of India (Sebi). The company plans to raise ₹600 crore from the issue.
The IPO will comprise a fresh issue of equity shares aggregating up to ₹400 crore, along with an offer for sale (OFS) worth ₹200 crore, where promoters Rajesh Jain, Neokraft Global Private Limited and ZKW Group GmbH will be the selling shareholders.
While Jain will offload shares aggregating up to Rs 114 crore, Neokraft and ZKW will pare their stake amounting to ₹40 crore and ₹46 crore, respectively.
The company may also consider a pre-IPO placement up to ₹75 crore in consultation with the Book Running Lead Managers (BRLMs).
About Neolite ZKW Lightings
Incorporated in 1992, Neolite ZKW is a manufacturer and global supplier of automotive lighting products and components for OEMs. Citing a CRISIL report,the DRHP claims that the company’s market share in the domestic commercial vehicle lighting segment was 34.43 per cent in fiscal 2025.
The Company has a strategic alliance with ZKW Group GMBH (which became a subsidiary of LG Electronics in 2018).
As of October 31, 2025, the company served over 40 OEMs and offered a portfolio of more than 830 SKUs, including LED and EV-focused lighting solutions.
Its diversified customer base includes Tata Motors Limited, Stellantis Automobiles India Private Limited, JSW MG Motor India Private Limited, Daimler India Commercial Vehicles Private Limited, VE Commercial Vehicles Limited and Isuzu Motors, among others.
IPO proceeds
The company plans to utilise ₹152.51 crore from its net proceeds from the fresh issue towards setting up a new greenfield manufacturing facility at Kancheepuram, Tamil Nadu. It has proposed to use another 79 crore for the purchase of plant & machinery and electronic expansion at existing manufacturing facilities.
Out of the total proceeds, the company will deploy up to ₹65 crore towards repayment of certain outstanding borrowings. The balance proceeds, if any, will be utilised for general corporate purposes.
Neolite ZKW Lightings financials
For the three-month period ending June 30, 2025, revenue from operations stood at ₹124.85 crore, with exports contributing 55.08 per cent and domestic sales accounting for 44.92 per cent of total revenue. In Fiscal 2025, revenue from operations increased to ₹512 crore.
Profitability improved materially over the period, with gross profit margin increasing to 49.18 per cent in FY25 from 37.84 per cent in FY23.
Operating EBITDA rose to ₹96.46 crore in FY25 from ₹41.55 crore in FY23, with operating EBITDA margins expanding to 18.84 per cent from 10.25 per cent.
Profit After Tax (PAT) increased to ₹52.82 crore in FY 2025 from ₹15.58 crore in FY23, translating into a PAT margin of 10.32 per cent.
As of October 31, 2025, the company had an order book of ₹171.87 crore, which is expected to be executed by the financial year ending March 31, 2027.
Anand Rathi Advisors Limited and Systematix Corporate Services Limited are the Book Running Lead Managers to the issue.
