Neolite ZKW Lightings Limited, a leading manufacturer and global supplier of automotive lighting products, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India, marking a key step toward its proposed initial public offering.
The proposed IPO aggregates up to ₹6,000 million and comprises a fresh issue of equity shares worth up to ₹4,000 million by the company, along with an offer for sale of equity shares aggregating up to ₹2,000 million by existing shareholders. The offer for sale includes shares worth ₹1,140 million by promoter Rajesh Jain, ₹400 million by Neokraft Global Private Limited, and ₹460 million by ZKW Group GmbH. In addition, the company may consider a pre-IPO placement of specified securities aggregating up to ₹750 million, subject to regulatory approvals.
According to the DRHP, the net proceeds from the fresh issue are proposed to be utilised primarily for capacity expansion and balance-sheet strengthening. This includes ₹1,525.10 million for setting up a new greenfield manufacturing facility at Kancheepuram in Tamil Nadu, ₹790.79 million for the purchase of plant and machinery and electronic expansion at existing facilities, and ₹650 million towards repayment or pre-payment of certain outstanding borrowings. The remaining funds will be used for general corporate purposes.
Incorporated in 1992 and led by its founder Mr. Rajesh Jain along with CEO Mr. Rajesh Soni, Neolite ZKW Lightings has built a strong presence across passenger vehicles, commercial vehicles, off-road vehicles, two-wheelers, three-wheelers and the aftermarket. The company holds a strategic alliance with ZKW Group GmbH, which became a subsidiary of LG Electronics in 2018. What began as a strategic collaboration in 2012 has evolved into a long-term partnership focused on technology, product development and global reach. ZKW Group is globally recognised for premium lighting solutions, including advanced LED and laser headlamps supplied to OEMs such as BMW and Audi, as well as for its work in digital and matrix lighting aligned with autonomous driving trends.
As of October 31, 2025, Neolite ZKW served over 40 OEMs and offered a portfolio of more than 830 SKUs, including EV-focused lighting solutions. Its customer base spans major automotive players such as Tata Motors, Stellantis India, JSW MG Motor India, Daimler India Commercial Vehicles, VE Commercial Vehicles, Isuzu Motors India, Piaggio Vehicles, JCB India, Escorts Kubota and several international OEMs.
The company operates three partially vertically integrated and semi-automated manufacturing facilities located at Bahadurgarh in Haryana and Pune in Maharashtra. It is also among the few Indian automotive lighting manufacturers with a strong export footprint, supplying products to more than 50 countries across CIS markets, North America and Western Europe. As of October 31, 2025, the company reported an order book of ₹1,718.76 million, comprising project-based assignments and tooling expected to be executed by March 31, 2027.
Neolite ZKW has posted strong financial growth over recent years. Revenue from operations stood at ₹1,248.55 million for the quarter ended June 30, 2025, with exports contributing 55.08 percent. For Fiscal 2025, revenue rose to ₹5,120.75 million, with exports accounting for 46.35 percent and domestic sales 53.65 percent. Profitability also improved significantly, with gross margins rising to 49.18 percent in Fiscal 2025 from 37.84 percent in Fiscal 2023. Operating EBITDA increased to ₹964.60 million, while profit after tax rose to ₹528.24 million, translating into a PAT margin of 10.32 percent. The company also reported robust return ratios, with ROE at 33.90 percent and ROCE at 31.12 percent in Fiscal 2025.
Anand Rathi Advisors Limited and Systematix Corporate Services Limited are acting as the book running lead managers to the issue.
