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Lumino Industries Submits DRHP for ₹1,000 Crore IPO


Last Updated: 22nd January 2025 - 12:19 pm
Lumino Industries, an engineering, procurement, and construction (EPC) firm specializing in conductors, power cables, and power EPC projects, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise ₹1,000 crore through an initial public offering (IPO).
The IPO structure includes a fresh issue of shares worth ₹600 crore and an offer-for-sale (OFS) of ₹400 crore by the company's promoters. The offer-for-sale will enable existing shareholders to offload a portion of their holdings, allowing for greater public participation in the company’s equity.
A part of the offering will be allocated to eligible employees under the employee reservation segment, providing them with an opportunity to invest in the company at potentially discounted rates.
Pre-IPO Placement and Fund Utilization
In addition to the IPO, the Kolkata-based company, in consultation with its book-running lead managers (BRLMs), may consider a pre-IPO placement of equity shares amounting to ₹120 crore. If this placement is executed, the fresh issue size may be reduced accordingly.
Lumino Industries intends to utilize ₹420 crore from the fresh issue proceeds to reduce its outstanding debt, thereby improving its financial position and lowering interest costs. A relatively small portion of ₹15 crore will be allocated for capital expenditure (capex), which suggests that the company is not heavily investing in infrastructure expansion at this stage. The remaining funds will be used for general corporate purposes, which may include operational expenses, working capital, and potential strategic initiatives.
Strengths and Growth Prospects
Lumino Industries has established itself as a significant player in the EPC sector, particularly in power infrastructure. The company’s expertise in manufacturing conductors and power cables has enabled it to secure large-scale projects, contributing to its sustained growth.
With India’s increasing focus on infrastructure development, electrification, and renewable energy expansion, companies like Lumino Industries stand to benefit from rising demand in the power sector. The government’s emphasis on strengthening power transmission and distribution networks presents further growth opportunities for the firm.
Additionally, reducing debt through IPO proceeds will improve the company's financial stability, enhancing its ability to bid for larger projects and compete with industry peers. The relatively small capex allocation indicates that the company may be focusing on optimizing its existing resources rather than pursuing aggressive expansion.
IPO Details and Market Outlook
The IPO will feature a face value of ₹5 per equity share. While specific price bands and listing dates will be announced later, market analysts will be closely watching investor sentiment toward the offering. Given the company’s track record and the sector's growth potential, Lumino Industries' IPO is expected to generate significant interest from both retail and institutional investors.
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