Lumino Industries has set a price band of Rs 78 to Rs 82 per share for its Rs 700 crore IPO, which opens for subscription on August 27. The company plans to use the proceeds primarily to repay debt and fund capital expenditure. Investors should evaluate the firm's reliance on power sector orders and customer concentration before proceeding.
Lumino Industries, a manufacturer of conductors and power cables, has officially announced the price band for its upcoming Initial Public Offering (IPO). The company will offer shares in the range of Rs 78 to Rs 82 each. The total fundraising target is set at Rs 700 crore, which will be achieved through a combination of a fresh issue of shares worth Rs 500 crore and an offer-for-sale by existing promoters totaling Rs 200 crore. The subscription window for public investors is scheduled from August 27 to August 31, 2026, with shares expected to list on the exchanges on September 3, 2026.
Financial Performance and Order Book
For the fiscal year ended March 2026, the company reported a profit of Rs 160 crore, up from Rs 124.6 crore in the previous year. Revenue from operations also grew, reaching Rs 2,041 crore, reflecting a 6.4% year-on-year increase. The company's order book stood at Rs 3,149.8 crore as of March 2026, showing growth compared to the Rs 2,436.2 crore recorded in the same period last year. This backlog provides some visibility into future revenue.
Debt Management and Capital Usage
A significant portion of the funds raised will be directed toward improving the company's balance sheet. Out of the fresh issue proceeds, the company intends to use Rs 337 crore to repay outstanding loans. As of the latest reporting, the company carried total borrowings of Rs 1,856.7 crore. By lowering this debt, the company aims to reduce its interest burden, which could potentially support profitability in the future. Additionally, Rs 15 crore is earmarked for purchasing equipment and facility development, with the remainder allocated for general corporate purposes.
Risks and Sector Context
While the company has a strong order book, investors should be aware of several operational risks. Lumino Industries operates in a business that requires significant working capital, meaning a large amount of cash is often tied up in inventory and waiting for payments from customers. Furthermore, the company faces concentration risk, as it relies heavily on a limited number of large clients, such as Kalpataru Projects International and Jackson, for a significant portion of its revenue.
Being in the power cable and conductor manufacturing business, the company is also sensitive to government policy and spending in the power sector. Any delays in government project clearances or shifts in power infrastructure spending could affect demand. Additionally, the business is exposed to fluctuations in the prices of raw materials like aluminum, steel, and copper, which can directly impact profit margins. The company's success will depend on its ability to manage these costs and execute its existing order book on time. Investors may track the subscription trends starting August 27 and pay attention to any updates regarding project execution and debt repayment milestones.