Now Reading: Lumino Industries sets IPO price band at Rs 78-82 per share
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Lumino Industries sets IPO price band at Rs 78-82 per share
Lumino Industries, a Kolkata-based power cables and electrical wires maker, will launch its Rs 700-crore initial public offering on August 27. The company has fixed the price band at Rs 78-82 per…
Lumino Industries, a Kolkata-based power cables and electrical wires maker, will launch its Rs 700-crore initial public offering on August 27. The company has fixed the price band at Rs 78-82 per equity share, with a face value of Rs 5 per share. The IPO comprises a fresh issue of up to Rs 500 crore and an offer for sale of up to Rs 200 crore by promoters Devendra Goel and Jay Goel.
Proceeds worth Rs 337 crore from the fresh issue will be used for prepayment or repayment of outstanding borrowings. Around Rs 15 crore will go toward capital expenditure for equipment, machinery, and civil works at an existing facility. The company also plans to use funds for general corporate purposes. A new manufacturing facility in West Bengal is expected to become operational in the second half of the current financial year, which will help expand its product range.
Lumino Industries has two verticals: product (cables and conductors) and EPC (engineering, procurement, construction), with about 70 per cent of revenue from products and 30 per cent from EPC. The company currently operates two plants in Kolkata with an annual installed capacity of 40,000 tonnes. It aims to increase exports to the US and African markets. The IPO will close on August 31, and shares will be listed on BSE and NSE.
Indian Opinion Analysis
This IPO comes as India's power transmission and distribution sector sees sustained investment under the government's Revamped Distribution Sector Scheme (RDSS) and the National Infrastructure Pipeline. Lumino Industries, with its integrated product and EPC model, is positioned to benefit from grid modernisation and rural electrification projects. The company's reliance on debt repayment for 67 per cent of fresh proceeds suggests a leveraged balance sheet, a key risk for investors to watch. The price band of Rs 78-82 values the firm at a price-to-earnings multiple comparable to listed peers such as KEI Industries and Polycab, but the premium will depend on execution of the new West Bengal facility and export ramp-up. The subscription figures on the closing date, August 31, will be the first market signal.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
