Kolkata-based Lumino Industries, a well-known conductors, power cables, and electrical wires manufacturer, has taken a big leap towards its next growth phase. The company has filed preliminary papers with the Securities and Exchange Board of India (SEBI), setting the stage to raise INR 1,000 crore through an Initial Public Offering (IPO). This marks a significant milestone in Lumino’s expansion plans.
Lumino Industries’ IPO Breakdown
The upcoming IPO will be split into two components:
- Fresh issue: Shares worth INR 600 crore will be issued.
- Offer-for-sale (OFS): Promoters Devendra Goel and Jay Goel will offload shares worth INR 400 crore.
There’s also the possibility of a pre-IPO placement to bring in up to INR 120 crore. If that materializes, the size of the fresh issue will be adjusted.
Utilization of Funds
Lumino Industries has laid out a clear plan for utilizing the funds:
- Debt repayment: INR 420 crore will go toward reducing its financial burden.
- Facility upgrade: INR 15.08 crore is earmarked for improving its manufacturing unit. This will cover everything from equipment purchases to civil work and interiors.
A Closer Look at Lumino Industries
For years, Lumino Industries has supplied conductors, power cables, and specialized electrical products to large EPC (engineering, procurement, and construction) companies. Its clientele includes industry heavyweights like Kalpataru Projects International, Warora Kurnool Transmission, and RS Infraprojects, among others.
But its reach isn’t limited to India. Lumino exports its products to countries such as the United States, Nepal, Bangladesh, Kenya, Ghana, Rwanda, and Ethiopia.
A Financial Growth Story
The numbers tell an impressive story. In FY 2024, Lumino’s revenue soared to INR 1,407.3 crore, an 85.1% jump compared to FY 2023, when it posted INR 760.2 crore. Profits saw an even bigger leap—346% growth, to be exact—hitting INR 86.6 crore in FY 2024, compared to INR 19.4 crore the previous year.
And the momentum hasn’t slowed. For the six months ending 30 September 2024, the company recorded a profit of INR 63.7 crore on revenue of INR 947.6 crore.
As of 30 September 2024, Lumino Industries reported an order book of INR 1,803.5 crore. This includes a mix of domestic and international projects, reflecting a diverse and robust pipeline.
Book Running Lead Manager
The company has roped in Motilal Oswal Investment Advisors, JM Financial, and Monarch Networth Capital as the book-running lead managers for the IPO. With experienced hands on deck, Lumino appears well-prepared for its market debut.
What’s Next?
Lumino Industries’ IPO isn’t just about raising funds. It’s a strategic move to strengthen its foothold in a growing market. By reducing its debt and upgrading its facilities, the company aims to set itself up for sustained growth.
The demand for conductors and power cables continues to rise in India and abroad, creating a ripe opportunity for Lumino to capitalize on. Its stellar financial performance, expanding international presence, and strong order book will likely draw keen interest from investors.
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