Automotive lighting major Neolite ZKW Lightings has filed its draft prospectus with the Securities and Exchange Board of India (SEBI) to launch an IPO worth up to INR 600 crore. Neolite ZKW Lightings IPO comprises a fresh issue (INR 400 crore) and an offer for sale (INR 200 crore), according to the DRHP. The issue is being managed by Anand Rathi Advisors and Systematix Corporate Services, with KFin Technologies as the registrar.
Neolite ZKW Lightings IPO: Company Overview
Founded in 1992 and headquartered in New Delhi, Neolite ZKW Lightings is an established manufacturer and global supplier of automotive lighting systems catering to passenger vehicles (PVs), commercial vehicles (CVs), off-road (OR) vehicles, three-wheelers (3Ws), and two-wheelers (2Ws).
As of October 2025, Neolite offers more than 830 SKUs and serves over 40 original equipment manufacturers (OEMs) across India and 50+ international markets, including North America, Western Europe, and the CIS region. The company’s clientele includes marquee names such as Tata Motors, VE Commercial Vehicles, Daimler India, JSW MG Motor India, Piaggio, and JCB.
Neolite holds a 34.43% market share in India’s commercial vehicle lighting segment (FY2025), as per CRISIL, making it a leading domestic player and one of India’s prominent exporters of lighting components.
Neolite ZKW Lightings IPO: Financial Performance
Neolite’s financial trajectory showcases consistent top-line growth and improving profitability:
| Particulars | FY2023 | FY2024 | FY2025 | Q1 FY2026 |
|---|---|---|---|---|
| Revenue | 405.38 | 402.99 | 512.08 | 124.86 |
| PAT | 15.59 | 19.05 | 52.82 | 22.26 |
| PAT Margin (%) | 3.84 | 4.73 | 10.32 | 17.83 |
| EPS (INR) | 2.64 | 3.23 | 8.96 | 3.77 |
The company’s gross profit margin rose from 37.8% in FY2023 to 49.2% in FY2025, while return on equity (ROE) stood at 33.9% and return on capital employed (ROCE) at 31.1%, outpacing listed peers. Exports contributed 46.35% of FY2025 revenues.
The financial leverage has also improved: net debt reduced from INR 85.6 crore in FY2023 to INR 59.9 crore in FY2025, resulting in a Net Debt-to-EBITDA ratio of 0.62x.
Neolite ZKW Lightings IPO: Utilisation of Funds
Neolite plans to utilise the IPO proceeds as follows:
| Purpose | Allocation (INR Cr) |
|---|---|
| Greenfield manufacturing facility at Kancheepuram, Tamil Nadu | 152.51 |
| Electronic expansion and upgradation of Unit 1 (Bahadurgarh, Haryana) | 79.08 |
| Debt repayment and prepayment | 65.00 |
| General corporate purposes | Balance |
The Kancheepuram facility will strengthen Neolite’s footprint in southern India, strategically positioning it closer to major automotive clusters and enhancing supply chain efficiency.
Ownership & Promoter Group
The company’s promoters include Rajesh Jain, Vaishali Jain, and Pramod Plastic Industries. As per the DRHP, promoter shareholding pre-issue is as follow:
| Shareholder | % Pre-Offer Holding |
|---|---|
| Rajesh Jain | 67.22% |
| ZKW Group GmbH | 26.00% |
| Pramod Plastic Industries Pvt. Ltd. | 6.78% |
| Neokraft Global Pvt. Ltd. | 0.00% |
ZKW Group GmbH, a subsidiary of LG Electronics since 2018. However, Neolite emphasizes that it has “evolved into a self-reliant company”, retaining full control over strategy, R&D, and execution.
Manufacturing and R&D Capabilities
Neolite operates three manufacturing units and two design centers:
- Unit 1 – Bahadurgarh, Haryana: Main OEM and aftermarket facility.
- Unit 2 – Bahadurgarh, Haryana: Sheet metal fabrication and precision stamping.
- Unit 3 – Pune, Maharashtra: New automotive lighting OEM plant.
Together, they have a capacity of 11.88 million units per annum, spread across 407,702 sq. ft. The upcoming Kancheepuram plant will mark its southern expansion.
Design centers at Bahadurgarh and Pune focus on 3D modeling, optical design, and prototyping—enhancing Neolite’s in-house product development and time-to-market advantage.
Product Portfolio: Diversified and Technology-Driven
Neolite’s extensive portfolio spans:
- Front lighting: Halogen, LED projector, and light-source unit-based headlamps.
- Rear lighting: Tail lamps, signal lamps, CHMSLs, and rear fog lamps.
- Interior lighting: Ambient and capacitive-touch roof lamps, puddle lights.
The company is transitioning toward LED systems, with LED-based products accounting for 59.5% of Q1 FY2026 revenue, up from 35.3% in FY2025, reflecting its alignment with global trends toward energy efficiency and EV compatibility.
Industry Context: Riding the Auto Lighting Boom
According to CRISIL, India’s automotive lighting industry is projected to grow at a CAGR of 17–19%, reaching INR 22,500–24,500 crore by FY2030. This growth will be driven by rising vehicle production, premiumization, and LED adoption, areas where Neolite is well-positioned due to its technological tie-up with ZKW and strong domestic OEM presence.
Conclusion
Neolite ZKW Lightings IPO filing underscores a transformational growth story blending legacy manufacturing expertise with modern LED and EV lighting innovation. As India’s automotive sector accelerates toward electrification and premiumization, Neolite’s planned expansion and strengthened R&D foundation may establish it as a formidable player in global automotive lighting.
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