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Lumino Industries

• Lumino Industries is coming out with a 100% book building; initial public offering (IPO) of 8,97,43,588 shares of face value Rs 5 each in a price band Rs 78-82 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 27, 2026 and will close on August 31, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 15.60 times of its face value on the lower side and 16.40 times on the higher side.
• Book running lead managers to the issue are Motilal Oswal Investment Advisors, JM Financial and Monarch Networth Capital.
• Compliance officer for the issue is Vivek Jain. 

Profile of the company

Lumino Industries is a product-driven integrated engineering, procurement and construction (EPC) player in India, with strong focus on manufacturing and supplying conductors, power cables and electrical wires and other specialised products and components to the growing power transmission and distribution industry in India. The company is also manufacturing high-temperature low-sag (HTLS) conductors used in distribution and transmission lines in India. By leveraging its experience of more than three decades in the power transmission and distribution industry, it has developed a product driven business model focused on designing, engineering, manufacturing and distributing specialised products used in a wide range of power transmission and distribution, industrial applications, electrical wiring, renewable energy projects, communication systems, electrical panels and railway networks applications.

The company supplies conductors, power cables and other specialised products to large EPC players. The company also cater its products to international clients, which include government owned and controlled electricity companies, public enterprises and electricity boards, in countries such as United States of America, Mali, Burkina Faso, Nepal, Bangladesh, Kenya, Ghana, Rwanda and Ethiopia. Further, in line with its product-driven strategy and integrated operations, it also supplies products for captive consumption in the EPC projects executed by the company.

Its integrated operations ensure captive consumption of a portion of its specialised products and reduces external dependence, driving consistency in demand and enhancing revenue stability. The captive consumption of its products helps it in ensuring stable and predictable sales, while also streamlining production planning and reducing inventory risks. Similarly, by manufacturing critical products and components in-house, it has developed a reliable and uninterrupted supply chain for its EPC projects, reducing dependency on external vendors and mitigating risks associated with procurement delays or price volatility. The integrated operations enhance its project execution capabilities by allowing it to meet product specifications, while deriving cost efficiencies through economies of scale. Its distinct product driven business model improves its bidding capabilities for EPC projects (by minimizing external costs and maximizing operational flexibility) and enables it to improve its receivable cycle and overall profitability.

Proceed is being used for: 

• Prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by the company
• Capital expenditure by the company for purchase of equipment and machinery, civil works and interior development of an existing manufacturing facility 
• General corporate purposes

Industry overview

Electrical wires and cables are essential components used for transmitting electricity, data, or signals. While a wire typically consists of a single conductor, a cable is an assembly of one or more conductors, often insulated and bundled together. There are various types and varieties of cables, each designed to perform a specific function. Classification is based on the core structure of the conductor metal (majorly copper and aluminium), number of cores, type of insulation material and arrangement, etc.

In FY26, cables and wire market was valued at around Rs 1,618 billion, up from Rs 787 billion in FY20, registering a CAGR of 13%. This notable surge can be primarily attributed to a remarkable growth of High Voltage (HV) & Extra-High Voltage (EHV)- 33 kV and above cables and Elastomeric Cables also known as rubber cables, are a type of electrical cable that uses an elastomer (a flexible, rubber-like material) for insulation and/or sheathing, which have registered exponential growth on the back of increased expansion of transmission lines and electrification initiatives in rural areas. Other cable categories contributing substantially to the accelerated market growth include PVC Control Cables & Instrumentation, and building, driven by pickup in construction activities in both commercial and residential sectors. Additionally, the expansion is also driven by higher production volumes and elevated realizations due to rising commodity prices. 

Looking ahead, the wires and cables market to grow at a CAGR of 13-14% between FY26 and FY31, reaching Rs 2,980 billion - Rs 3,120 billion by FY31. This robust growth will be driven by substantial investments in distribution networks under the Revamped Distribution Sector Scheme (RDSS) in the lower voltage segment, as well as investment plans by Central Transmission Utility (CTUIL), the Inter-State Transmission System (ISTS), and the Green Energy Corridor (GEC) in the high voltage segment. Along with this, over long-term investment in building & construction is projected to increase at an average annual rate of 3-5% between fiscal years 2027 and 2031, in line with the growth in residential demand.

Pros and strengths 

Company is a growing player in the power EPC industry: The company is a product-driven integrated EPC player in India, with strong focus on manufacturing and supplying high-quality conductors, power cables and electrical wires and other specialised products and components to the growing power transmission and distribution industry in India. It commenced its operations in 1989 as a power conductor and cables manufacturer. In 2007, it identified a strategic opportunity to enhance its value chain through integration and started participation in execution of EPC projects by leveraging its product-driven approach and using the products captively manufactured by the company. This strategic shift has allowed it to leverage its manufacturing capabilities more effectively by integrating its manufacturing operations with its EPC business. Its Manufacturing and EPC segments are complimentary to each other, allowing it to bid at more competitive rates and shorten the execution timelines, while providing a market for captive consumption of its in-house manufactured products.

Cost efficient and unique business model with complimentary and integrated business segments: The integration of its Manufacturing and EPC business segments through its product-driven strategy and leveraging the synergy of its business segments is the cornerstone of its success. The integration of its two business segments allows it to streamline processes, reduce costs, and optimize resource utilization, creating a strong competitive advantage. Its product-driven strategy ensures captive consumption of a substantial portion of its specialised products in the EPC projects undertaken by the company, which reduces external dependence, driving consistency in demand and enhancing revenue stability. In Fiscal 2026, 23.08% of the specialised products used in the EPC projects were manufactured by it in-houses. By aligning production output with project requirements, it minimizes excess inventory and optimizes resource utilization, leading to more efficient production cycles and reduced operational costs. This strategic synergy not only improves cost efficiencies but also strengthens supply chain resilience, enabling it to achieve better economies of scale, maximize profitability, and ensure long-term growth.

Well-developed and integrated manufacturing facilities with extensive product range: Its manufacturing facilities are critical to its product-driven business model and enable it to manufacture high-quality products in an efficient manner, which can be used in a captive manner in the EPC projects undertaken by the company. Its manufacturing facilities allow it to maintain and ensure that the specialized products used in the EPC projects executed by it adheres to high quality standards. It operates two manufacturing facilities in India and four warehouses to support its manufacturing facilities. Its manufacturing facilities enables it to manufacture its diversified products efficiently. These facilities are accredited to Indian and international standards, and capable of precision manufacturing its range of products. its products cater across industries and have a wide range of power transmission and distribution, industrial applications, electrical wiring, renewable projects, communication systems, electrical panels and railway networks applications. Apart from power generation, transmission, and distribution industry it also caters to industries like renewable energy, railway electrification, and other infrastructure projects.

Strong strategic alliances and partnerships with prominent international companies: One of its key strengths is its ability to identify, develop and forge strategic alliance and partnership with leading international company. It considers that such alliance and partnership will allow it to leverage the combination of its partners’ technologies with its project management, engineering and construction capabilities as well as its knowledge of the market and customers in order to provide effective solutions for clients. The company has entered into a strategic collaboration with CTC Global Corporation (“CTC”) for the manufacture, sale and distribution of aluminium conductor composite core (“ACCC”) conductors. This strategic collaboration enhances its product portfolio and enables it to cater to the evolving requirements of the power transmission sector. Additionally, it has entered into a joint venture agreement dated January 27, 2023 with SMC Infrastructure Private Limited, to carry out the water EPC related projects including engineering and/or contract works jointly in the name of Lumino SMC JV.

Risks and concerns

Significant dependence on top ten customers, primarily government authorities: The company derives a significant portion of its Revenue from Operations from its top ten customers which are state and central government authorities and thus it is majorly dependent on these state and central government authorities. Revenue from its top 10 customers comprise a significant portion of its Revenue from Operations (46.52% for the Fiscal 2026, 80.33% for the Fiscal 2025 and 90.78% for the Fiscal 2024). It cannot assure that it will be able to maintain or increase business from these customers. While it has not faced any instances of complaints or cancellation/termination of contracts from its top 10 customers during the Fiscals 2026, 2025 and 2024, any such cancellation/termination or failure by the company to retain these top 10 customers in the future may have an adverse effect on its business, results of operations, financial condition and cash flows. In addition, any factors or events which adversely affect the business or operations of its key customers could in turn adversely affect its business, if its sale of products to these customers decrease.

Revenue concentration in Cables and Conductors business: The sale of cables and conductors manufactured by the company contributes a significant portion to its Revenue from Operations. For the Fiscals 2026, 2025, and 2024, respectively, its Revenue from Operations from the Manufacturing segment (i.e. revenue from sale of conductors and cables) has contributed to 69.74%, 64.96% and 65.60% of its Revenue from Operations. Any adverse development in its performance in the manufacturing business could have an adverse effect on its business, cash flows, results of operation and financial position.

Reliance on key suppliers for raw material requirements: The company relies on a limited number of parties for the supply of its raw material. Its top 10 suppliers contributed to 87.50%, 87.86%, and 85.67% of its revenue from operations during Fiscals 2026, 2025 and 2024, respectively. If one or more of its suppliers ceases supply to the company for reasons including due to commercial disagreements, insolvency of the supplier or supply chain issues, it may be unable to source its raw materials from alternative suppliers on similar commercial terms or within a reasonable timeframe. This may adversely impact its production and eventually its business, results of operations, financial conditions and cash flows. In such a scenario, it may also breach contractual terms of delivery and installation which it has entered into with its customers, which may have an adverse impact on its results of operations, financial conditions and cash flows.

Geographical concentration of manufacturing facilities and warehouses: The company has two operational manufacturing facilities and four warehouses, all situated in Howrah, West Bengal. The concentration of its manufacturing facilities and warehouses in West Bengal exposes it to risks and adverse events specific to the state. These regional risks include disruptions to infrastructure, natural disasters, workforce disruptions, changes in general economic conditions, civil unrest, the regulatory environment, and local government policies, amongst others. Any such disruptions in the future could adversely affect its business, results of operations, financial condition, and cash flows.

Outlook

Lumino Industries is engaged in the manufacturing and selling of cables and conductors. The company is also manufacturing HTLS conductors used in distribution and transmission lines in India. The company supplies conductors, power cables and other specialised products to large EPC players. On the concern side, it faces competitive pressures from the existing competitors and new entrants in both public and private sector. Increased competition and aggressive bidding by such competitors are expected to make its ability to procure business in future more uncertain which may adversely affect its business, financial condition and results of operations.

The issue has been offering 8,97,43,588 shares in a price band of Rs 78-82 per equity share. The aggregate size of the offer is around Rs 700.00 crore to Rs 735.90 crore based on lower and upper price band respectively. Minimum application is to be made for 182 shares and in multiples thereon, thereafter. On performance front, its total income increased by 7.33%, from Rs 19,466.81 million for Fiscal 2025 to Rs 20,893.13 million for Fiscal 2026. Its restated profit for the year increased by 28.42% from Rs 1,245.86 million for Fiscal 2025 to Rs 1,599.99 million for Fiscal 2026.

Meanwhile, its strategic move to expand its business scope and as well provide it a platform to directly supply and implement its in-house manufactured conductors has allowed it to participate in large electrification projects. The electrification projects have proved to be a high-margin business model and further enabled it to capture more value by offering end-to-end solutions. This strategic shift has strengthened its market presence, diversified its revenue streams, and increased profitability by ensuring a consistent demand for its products and also helping it to participate in the growing infrastructure and energy sectors. The company aims to enhance its value proposition to its customers by expanding its product portfolio and introducing new product lines through product development and innovation. Further, it intends to expand its production capabilities for helping it to deepen its pan-India and global presence. Its new under-construction manufacturing facility located in Ranihati, Howrah, West Bengal, will help it in expanding its product portfolio and further strengthen its manufacturing capabilities by manufacture of wide range of cables and conductors.