Neolite ZKW Lightings Limited plans to expand its manufacturing footprint and upgrade production capacity as part of its proposed initial public offering, with investments spanning a new greenfield facility and equipment additions at existing plants. The expansion is intended to support higher volumes and increased electronic content in automotive lighting systems as the company scales operations.
The company has filed draft papers with the Securities and Exchange Board of India to raise up to INR 6 billion through an initial public offering. The issue comprises a fresh issue of equity shares worth up to INR 4 billion and an offer for sale of shares aggregating INR 2 billion by promoters and an existing shareholder, according to the draft red herring prospectus.
According to the filing, Neolite ZKW Lightings has earmarked INR 1.525 billion from the fresh issue proceeds to set up a new manufacturing facility at Kancheepuram in Tamil Nadu. The proposed plant is intended to add incremental capacity and strengthen the company’s manufacturing presence in southern India.
In addition to the greenfield project, the company plans to invest INR 0.79 billion in plant and machinery at its existing facilities. This includes the installation of additional surface mount technology lines and testing equipment to support higher electronic content and advanced lighting systems, aimed at improving throughput and supporting new product programmes.
The draft filing also states that INR 0.65 billion from the fresh issue proceeds will be used for repayment or prepayment of borrowings. As of March 2025, the company reported total borrowings of INR 0.97 billion. The balance of the proceeds is proposed to be used for general corporate purposes. The company may also undertake a pre-IPO placement of up to INR 0.75 billion, which would proportionately reduce the size of the fresh issue.
Founded in 1992, Neolite ZKW Lightings manufactures automotive lighting products for passenger vehicles, commercial vehicles, two-wheelers, three-wheelers and off-road vehicles. The company operates three manufacturing units located in Bahadurgarh, Haryana, and Pune, Maharashtra, and has a technical alliance with Austria-based ZKW Group GmbH, which became a subsidiary of LG Electronics in 2018.
As of 31 October 2025, the company served more than 40 original equipment manufacturers and offered over 830 stock keeping units. Its order book stood at INR 1.72 billion, with execution planned up to FY27. In FY25, revenue from operations increased to INR 5.12 billion from INR 4.03 billion a year earlier, while profit after tax rose to INR 0.53 billion from INR 0.19 billion.
