{
  "id": 3638119,
  "title": "Can Lumino Industries IPO deliver long-term growth for high-risk investors?",
  "url": "https://urgent.news/2026/08/27/can-lumino-industries-ipo-deliver-long-term-growth-for-high-risk",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-27T01:17:27.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/ipos/fpos/can-lumino-industries-ipo-deliver-long-term-growth-for-high-risk-investors/articleshow/133553642.cms"
  },
  "original_language": "en",
  "account": "In the financial world, Lumino Industries, an engineering, procurement and construction company specializing in power cables, is set to make a bold move by issuing shares. The IPO aims to raise ₹500 crore to tackle debt and boost production, while an additional ₹200 crore will be offered for sale. This will reduce the promoter's stake from 100% to 71.9%.\n\nLumino Industries has been experiencing a surge in orders, which is expected to continue as there's a growing demand for wires and cables. This is primarily due to investments in power infrastructure and network expansion. However, the company has also faced challenges. Its debt has risen due to expansion and longer working capital requirements. Additionally, volatile raw material prices and concentration on specific customers pose risks.\n\nDespite these risks, the IPO could be a good fit for long-term investors who can tolerate higher risk. Established in 2005, Lumino Industries manufactures and supplies conductors, power cables, electrical wires, and specialized components to the power transmission and distribution sector. Its facilities are located in Howrah, West Bengal, with a combined production capacity of 40,000 metric tonnes.\n\nAs of March 31, 2026, the company had a substantial order book worth ₹3,149.9 crore. This includes ₹1,991.9 crore in EPC orders and ₹1,157.90 crore in manufacturing orders, with 53% of its FY26 revenue coming from government entities. This concentration of revenue could be risky. The company's raw materials, including aluminium, copper, and steel, are subject to price volatility.\n\nFinancially, Lumino Industries has seen significant growth. Revenue increased by 20% annually to ₹2,041.1 crore in FY26 from ₹1,407.3 crore in FY24. Operating profit before depreciation and amortisation (EBITDA) rose to ₹238.9 crore from ₹145.1 crore, improving the EBITDA margin to 11.7% from 10.3%. Net profit also saw a 36% annual increase to ₹160 crore in FY26 from ₹86.6 crore in FY24. The return on equity improved to 24.6% in FY26 from 21.5% in FY24, which is within the peer range of 1%-15.8%.\n\nComparatively, the company seeks a price-earnings (P/E) multiple of 15.6 on a post-IPO basis. This is lower than the P/E multiples of its peers - KEC International (18.9), KEI Industries (57.6), and Apar Industries (73.1).",
  "summary": "Lumino Industries plans a ₹700 crore initial public offering to reduce debt and boost manufacturing capacity. The company expects to benefit from increased demand for wires and cables. However, its debt has risen significantly due to expansion and working capital needs. Raw material price volatility and customer concentration present key operational risks. The issue is suitable for long-term…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}