Business Profile of Lumino Industries Limited
Lumino Industries Limited was incorporated in 2005, is a product-driven engineering, procurement, and construction (EPC) company manufacturing and supplying conductors, power cables, electric wires and specialized components for India’s power distribution and transmission industry. A product-driven business model has developed by company, focused on designing, manufacturing, and distributing specialized products for power distribution, renewable energy, industrial and communication applications. The company is fastest growing player in conductors, EPC industry and power cables and also manufactures high temperature, low-sag (HTLS) conductors for distribution & transmission lines. The company electrical wire business operates in four states in India and also supplies products to international clients including USA, Nepal and Ghana. Currently company operates two manufacturing facilities in Howrah, West Bengal.
Objective of Lumino Industries IPO
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨ 5.00 each aggregating up to ₹ 6,000.00 millions and OFS consists XXXX shares at face value of ₨ 5.00 each aggregating up to ₨ 4,000.00 millions. There are fresh shares issues and OFS by company and main objective of company is funding repayment, capital expenditure and general corporate expenses.
Details of Lumino Industries IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹5.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₨10,000.00 million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₨ 6,000.00 million | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₨ 4,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Lumino Industries IPO: Issue Price & Size
The issue price of LUMINO INDUSTRIES LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ 10,000.00 million at the price of ₨XXXX.
Launch Date of Lumino Industries IPO
The IPO opening date of LUMINO INDUSTRIES LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Lumino Industries Limited
| Particulars (Rs in Millions) | Ended 30th Sept, 2024 | 31st Mar , 2024 | 31st Mar , 2023 | 31st Mar , 2022 |
| INCOME | ||||
| Revenue from Operations | 9,476.21 | 14,073.15 | 7,602.12 | 6,040.11 |
| Other Income | 219.97 | 197.10 | 128.87 | 128.95 |
| Total Income | 9,696.18 | 14,270.25 | 7,730.99 | 6,169.06 |
| EXPENSES | ||||
| Cost of materials consumed | 5,334.32 | 7,505.15 | 5,522.37 | 2,874.32 |
| Erection , sub - contracting and other project expenses | 2,811.81 | 3,643.39 | 920.62 | 872.88 |
| Increase/decrease in inventories of finished goods | ( 683.39 ) | ( 233.72 ) | ( 239.22 ) | 850.40 |
| Employee benefits expense | 372.28 | 614.22 | 337.77 | 377.20 |
| Finance costs | 298.17 | 362.35 | 198.88 | 139.92 |
| Depreciation and amortization expenses | 76.92 | 102.14 | 59.06 | 58.29 |
| Other expenses | 631.81 | 1,117.17 | 665.76 | 540.84 |
| Total Expenses | 8,841.92 | 13,110.70 | 7,465.24 | 5,713.85 |
| Restated Profit before tax | 854.26 | 1,159.55 | 265.75 | 455.21 |
| Tax Expense : | ||||
| ( 1 ) Current tax | 234.86 | 315.54 | 75.39 | 51.99 |
| ( 2 ) Income tax for earlier years | . | ( 0.33 ) | . | . |
| ( 3 ) Deferred tax | ( 23.71 ) | ( 22.00 ) | ( 3.62 ) | 65.85 |
| Total Tax Expenses | 211.15 | 293.21 | 71.77 | 117.84 |
| Restated Profit for the period/ year | 643.11 | 866.34 | 193.98 | 337.37 |
Key financial ratios of Lumino Industries Limited
| Particulars | Ended Sept 30 , 2024 | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Revenue from Operations (Rs in Mn) | 9,476.21 | 14,073.15 | 7,602.12 | 6,040.11 |
| Operating EBITDA (Rs in Mn) | 1,009.38 | 1,426.94 | 394.82 | 524.47 |
| Operating EBITDA Margin (%) | 10.65 | 10.14 | 5.19 | 8.68 |
| PAT (Rs in Mn) | 643.11 | 866.34 | 193.98 | 337.37 |
| PAT Margin (%) | 6.63 | 6.07 | 2.51 | 5.47 |
| Tangible Net worth (Rs in Mn) | 5,093.37 | 4,458.55 | 3,591.93 | 3,381.27 |
| Return on Equity (%) | NA | 21.52 | 5.56 | 10.63 |
| Return on Capital Employed (%) | NA | 19.60 | 7.73 | 11.95 |
| Asset Turnover Ratio | NA | 18.80 | 12.98 | 11.70 |
| Net Debt (Rs in Mn) | 5,965.82 | 3,098.11 | 1,280.29 | 1,353.53 |
| Net Debt/Equity | 1.17 | 0.69 | 0.36 | 0.40 |
| Net Debt/Operating EBITDA | NA | 2.17 | 3.24 | 2.58 |
Promoters & Shareholding Lumino Industries IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 100.00% shareholding in company.
| Name | Number of Equity Shares | % Equity Shares |
| Promoters | ||
| Purushottam Dass Goel | 800,000 | 0.33 |
| Devendra Goel | 119,431,856 | 49.03 |
| Jay Goel ) | 86,560,000 | 35.54 |
| Total ( A ) | 206,791,856 | 84.90 |
| Members of Promoter Group | ||
| Rashmi Goel | 22,544,904 | 9.26 |
| Rohit Goel | 1,336 | 0.00 |
| RAG Private Family Trust | 14,000,000 | 5.75 |
| Devendra Goel Private Family Trust |
80,000 | 0.03 |
| Jay Goel Private Family Trust |
80,000 | 0.03 |
| Rohit Goel Private Family Trust |
80,000 | 0.03 |
| Total ( B ) | 36,786,240 | 15.10 |
| Total (A+B) | 24,35,78,096 | 100 |
Should You Subscribe To Lumino Industries IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Lumino Industries IPO:
Fastest growing player in EPC industry
The company is the fastest growing player in the conductors, power cables and power EPC industry in terms of revenue from operations, CAGR between fiscal 2022to 2024, among peers considered according to the CRISIL report. It is a product-driven integrated EPC player in India, with a strong focus on manufacturing and supplying high-quality conductors, power cables and electrical wires, and other specialized products and components in the transmission industry in India.
Integrated manufacturing facilities
The manufacturing facilities are important to the company's product-driven business model and enable the company to manufacture high-quality products in an efficient manner, which can be used in a captive manner in EPC projects undertaken by the company. The manufacturing facilities allow the company to maintain and ensure that the specialized products used in EPC projects executed by the company adhere to high-quality standards. These manufacturing facilities are accredited to Indian and International standards, which ensure to meet the unique demand of each sector.
Strong and diversified order book
The company order book showcases technical and engineering capabilities, management expertise, and robust internal systems. The pan-India presence enables the company to decrease its dependence on project activity in any particular region of India. As of September 30, 2024, the company's order book was Rs 14,585.37 million for EPC projects and Rs 3,449.89 million for manufacturing. The ability of the company to manage projects across India allows for the delivery of comprehensive solutions to regional requirements.
Strong strategic alliances and partnership
The company has entered into a joint deed of undertaking dated May 10, 2024, with Tokyo Rope International to license their technical expertise for the design and manufacturing of high-performance conductors (“HPC”). Additionally, the company has entered into a joint venture agreement with SMC Infrastructure Private Limited to carry out the water EPC-related project in the name of Lumino SMC JV. These alliances and partnerships will allow the company to leverage a combination of its partners’ technologies, engineering, and construction capabilities.
Risk Factors of Lumino Industries IPO:
Revenue concentration
The business and revenues of the company are substantially dependent on orders received from state-owned electricity boards (SEBs) and public sector power utilities. Revenue from the operations of the company in six months ended September 30, 2024 was 88.92% and 85.68% in fiscal 2024, is from government entities, and in the event that clients cease to issue tenders, could adversely affect the company business.
Product risk
The sale of cables and conductors manufactured by the company contributes a significant portion to its revenue from operations (more than 47% for six months ended September 30, 2024, and fiscals 2024, 2023 and 2022). The cables and conductors market is dependent primarily on government-planned expenditure on building new transmission and distribution networks. Any adverse development in performance in the manufacturing business could have an adverse effect on the business and cash flows.
Raw material price risk
The operations of the company are dependent upon the prices and availability of the primary raw material required for the production of aluminum conductors, power cables, and electric wires. The company sources raw material through a short-term contract with its supplier, exposing to fluctuations in material prices risk. Any increase in the cost of production could lead to higher product prices, which may adversely affect the demand of products.
High working capital
The working capital requirement is expected to increase in the future with the undertaking of larger or additional projects with a long gestation period or deferred payment schedules. The company has high working capital requirements, and a continued increase in working capital requirements or inability to obtain financing at favorable terms may have an adverse effect on the company's financial condition.
Lumino Industries IPO Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Lumino Industries Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
