2 days ago
Lumino Industries IPO Draws Strong Demand Amid Listing Gain Hopes
Lumino Industries is selling shares to the public for the first time.
The IPO price is between ₹78 and ₹82 per share.
Many investors have already placed bids, especially retail and non-institutional investors.
The grey market suggests the shares could list near ₹143, although this is not guaranteed.
Several brokerages recommended subscribing because the company has an integrated business and a sizeable order book.
They also highlighted strong profits, returns and relatively low valuation compared with some peers.
However, much of the company’s business comes from government and public-sector customers.
That dependence and the company’s need for working capital could create risks.
The IPO is expected to be listed on the BSE and NSE on 3 September.
Lumino Industries’ IPO was reported as 4.87 times subscribed, with strong retail and non-institutional demand.
The grey market premium stood at ₹61, implying an estimated ₹143 listing price, or a 74.39% premium to ₹82.
The ₹700 crore offering includes a ₹500 crore fresh issue and a promoter offer for sale worth up to ₹200 crore.
Brokerages recommended subscribing, citing integrated operations, profitability, order-book strength and discounted valuations.
Key risks include dependence on government and PSU customers, customer concentration, working-capital intensity and government-led projects.
- Who
- Lumino Industries, investors, brokerages and anchor investors.
- What
- Lumino Industries is conducting a ₹700 crore initial public offering comprising a fresh issue and promoter offer for sale.
- Where
- The shares are expected to be listed on the BSE and NSE, and the company operates across India.
- When
- The IPO opened on 27 August and is scheduled to close on 31 August; allotment is tentatively set for 1 September and listing for 3 September. The article’s headline says Day 3, while its subscription section refers to Day 2.
- Why
- The company plans to use ₹337 crore of fresh-issue proceeds to repay or prepay certain loans, ₹15 crore for capital expenditure and the remainder for general corporate purposes.
Reasons to Subscribe
Risks and Caution
Business and financial performance
Reasons to Subscribe
Brokerages cited Lumino Industries’ integrated EPC and manufacturing model, strong execution, healthy order book, profitability and return ratios.
Risks and Caution
The company has relatively high working-capital intensity, which brokerages identified as a risk.
Valuation and listing gains
Reasons to Subscribe
Brokerages said the IPO is attractively valued at 15.6 times FY26 earnings and below comparable EPC and cable companies; the grey market also indicated potential listing gains.
Risks and Caution
The grey market premium is an indication rather than a guaranteed listing price, and investors were advised to use prudent position sizing.
Customer concentration
Reasons to Subscribe
The company serves leading EPC contractors and has a diversified power-sector customer base, according to one brokerage.
Risks and Caution
Government and PSU customers account for 53%–86% of revenue, creating exposure to tender-driven business, uneven cash flows and government-led projects.
Key facts
- Price band
- ₹78–₹82 per equity share
- Issue size
- Fresh issue of up to ₹500 crore plus promoter OFS of up to ₹200 crore
- Reported subscription
- 4.87 times; retail 6.50 times, NII 7.78 times and QIB bids at 6% in the cited BSE data
- Grey market premium
- ₹61, implying an estimated ₹143 listing price and a 74.39% premium to the upper price band
- Anchor allocation
- ₹207 crore raised from anchor investors through more than 2.52 crore shares at ₹82 each
- Lot size
- 182 equity shares, with bids permitted in multiples of 182
- Proposed debt repayment
- ₹337 crore from the net fresh-issue proceeds
- Expected listing
- 3 September on the BSE and NSE
Sources
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