Automotive Lighting Major, Neolite ZKW Lightings files DRHP for 600 cr IPO
Chandigarh, Dec 29: Neolite ZKW Lightings Limited, an established manufacturer and global supplier of automotive lighting products and components for OEMs and among the leading players in the domestic commercial vehicle lighting segment with a market share of 34.43% in Fiscal 2025, as per CRISIL report, has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).
The company’s initial public offering aggregates up to ₹6,000.00 million and comprises a fresh issue of equity shares aggregating up to ₹4,000.00 million by the company and an offer for sale of equity shares aggregating up to ₹2,000.00 million by the selling shareholders — Rajesh Jain (₹1,140.00 million), Neokraft Global Private Limited (₹400.00 million) and ZKW Group GmbH (₹460.00 million).
In consultation with the Book Running Lead Managers, the company may also consider a pre-IPO placement of specified securities aggregating up to ₹750 million, as permitted under applicable law.
The net proceeds from the fresh issue are proposed to be utilised towards setting up a new greenfield manufacturing facility at Kancheepuram, Tamil Nadu, amounting to ₹1,525.10 million; purchase of plant and machinery and electronic expansion at existing manufacturing facilities amounting to ₹790.79 million; and repayment and/or pre-payment, in full or in part, of certain outstanding borrowings aggregating to ₹650 million. The balance proceeds, if any, will be deployed towards general corporate purposes.
Incorporated in 1992 and led by its founder and promoter Mr Rajesh Jain along with its CEO Mr Rajesh Soni, Neolite ZKW Lightings has established itself as a manufacturer and global supplier of automotive lighting products catering to OEMs across passenger vehicles, commercial vehicles, off-road vehicles, two-wheelers and three-wheelers, as well as the aftermarket segment. The Company has a strategic alliance with ZKW group GMBH (which became a subsidiary of LG Electronics in 2018). What began as a strategic initiative to strengthen business growth, technical competencies and geographic reach turned into a collaborative arrangement since 2012. It is one of the leading players in global automotive lighting industry, known for its expertise in premium lighting solutions and for supplying high-tech LED and laser headlamps to marquee global OEMs such as BMW and Audi. Backed by LG’s expertise in electronics, ZKW has also advanced in digital and matrix lighting solutions, aligning with the autonomous driving trend.
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.
The Company supplies products to across PV, CV, EV, 3W, OR, and aftermarket segments. 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, Isuzu Motors India Private Limited, Piaggio Vehicles Private Limited, and Thai Swedish Assembly Co. Limited, JV Uzchasys LLC, JCB India Limited, Same Deutz-Fahr India Private Limited, Escorts Kubota Limited, and JSC Uzauto Motors.
Neolite ZKW operates three partially vertically integrated, semi-automated manufacturing facilities located at Bahadurgarh, Haryana (Units 1 and 2) where and Pune, Maharashtra (Unit 3). It is amongst the few leading exporters of automotive lighting products and components from India, exporting to over 50 countries across CIS regions, North America, and Western Europe.
As of October 31, 2025, the Company had an order book of ₹1,718.76 million comprising project-based assignments and tooling in the automotive lighting segment, which are expected to be executed by the financial year ended March 31, 2027.
The Company has demonstrated strong and improving financial performance, supported by a diversified revenue mix across domestic and export markets. For the three months period ended June 30, 2025, revenue from operations stood at ₹1,248.55 million, with exports contributing 55.08% and domestic sales accounting for 44.92% of total revenue. In Fiscal 2025, revenue from operations increased to ₹5,120.75 million, with exports contributing ₹2,373.51 million (46.35%) and domestic revenues at ₹2,747.24 million (53.65%), reflecting the Company’s expanding global footprint.
Profitability improved materially over the period, with gross profit margin increasing to 49.18% in Fiscal 2025 from 37.84% in Fiscal 2023. Operating EBITDA rose to ₹964.60 million in Fiscal 2025 from ₹415.54 million in Fiscal 2023, with operating EBITDA margins expanding to 18.84% from 10.25%. Profit After Tax (PAT) increased to ₹528.24 million in Fiscal 2025 from ₹155.85 million in Fiscal 2023, translating into a PAT margin of 10.32%. The Company also reported strong return ratios in Fiscal 2025, with ROE and ROCE at 33.90% and 31.12%, respectively, underlining improved capital efficiency and operating leverage.
Anand Rathi Advisors Limited and Systematix Corporate Services Limited are the Book Running Lead Managers to the issue.