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DRChoksey Report
Lumino Industries IPO: Here are the 10 key things investors should know before investing
1. Dates
- Lumino Industries IPO will open for subscription today, August 27 and closes on Aug. 31.
- The allotment for the IPO is expected to be finalised on Sep. 01.
- The shares will be listed on both the National Stock Exchange and BSE On Sep. 03.
2. Price band
The manufacturer of cables and wires have fixed the price band in the range of Rs 78 to Rs 82 per equity share.
3. IPO size
The Rs 700-crore IPO comprises a fresh issue of 6.10 crore shares, worth up to Rs 500 crore and an Offer For Sale (OFS) of 2.44 crore shares aggregating up to Rs 200 crore.
4. Lot size and minimum investment
Investors can bid for a minimum lot of 182 equity shares. At the upper price band of Rs 82 per share, the minimum investment for one lot works out to Rs 14,924.
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5. BRLM
Motilal Oswal Investments Ltd., JM Financials Ltd.,Monarch Networth Capital Ltd. are the book running lead manager for the IPO, while Bigshare Services Pvt Ltd. is the registrar to the offer.
6. Peer comparison
Laser Power Infra,Polycab India, KEI Industries, Apar Industries, RR Kabel, Finolex Cables are the few other listed peer in the segment.
7. Key Growth Drivers
- Shift Towards Higher-Voltage Cables
- HTLS and High-Performance Conductors.
- Renewable Energy and Transmission Build-Out.
- Manufacturing Capacity Expansion.
- Backward Integration.
- EPC Mix Improvement.
- Integrated Manufacturing-EPC Model8.
- Expansion into Allied EPC Segments
- Export-Led Growth
- Product-Led Long-Term Growth Strategy.
8. Financials
- Revenue from operations rose 45.0% to Rs 2,041.07 crore in FY26 from Rs 1,407.32 crore in FY24.
- Operating Ebitda grew 64.7% to Rs 238.95 crore in FY26 from Rs 145.09 crore in FY24.
- Ebitda margin expanded to 11.71% in FY26 from 10.31% in FY24, an improvement of 140 bps.
- PAT margin improved to 7.66% in FY26 from 6.08% in FY24.
9. Key risks
- High working capital intensity due to elongated receivable cycles from government utilities and EPC contracts may constrain cash flows.
- Underutilised capacity and execution challenges could impact growth momentum.
- Dependence on government-led capex exposes the company to delays in order inflows and collections.
10. Valuation
At the upper price band, Lumino is valued at 15.62x FY26 P/E and 10.65x EV/Ebitda, at a significant discount to the listed peer average of ~46.8x P/E and ~30.3x EV/Ebitda.
Given the company's improving business mix, margin expansion potential and favourable power infrastructure outlook, the valuation appears reasonable and offers scope for re-rating as execution improves.
The brokerage recommends Subscribe to this IPO for Long term.
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