ET Intelligence Group: Lumino Industries, a power cable manufacturer and EPC contractor, plans to raise ₹500 crore through a fresh issue to repay debt and expand capacity, and ₹200 crore through offer for sale. The promoter stake will fall to 71.9% after the IPO from 100%. The company has reported strong growth in the order book. It is expected to benefit from increasing demand for wires and cables, supported by robust investments in power infrastructure and network expansion projects. However, its debt burden has increased due to capacity expansion and elongated working capital cycle. Additionally, raw-material price volatility and customer concentration remain key operational risks. Given these factors, the issue appears to be suitable for long-term investors with a higher risk tolerance.

Business

Incorporated in 2005, Lumino Industries is an integrated engineering, procurement, and construction (EPC) company. It manufactures and supplies conductors, power cables, electrical wires, and specialised components to the power transmission and distribution industry. Manufacturing contributed nearly 70% of revenue in FY26, while EPC accounted for the rest. The company operates two manufacturing facilities in Howrah, West Bengal, with a combined capacity of 40,000 MT. The company had a closing order book of ₹3,149.9 crore as of March 31, 2026, comprising ₹1,991.9 crore of EPC orders and ₹1,157.90 crore of manufacturing orders. The government entities accounted for 53% of FY26 revenue, posing concentration risk. It is also exposed to metal prices volatility as it uses aluminium, copper and steel as raw material.

Financials

Revenue grew 20% annually to ₹2,041.1 crore in FY26 from ₹1,407.3 crore in FY24. Operating profit before depreciation and amortisation (Ebitda) increased to ₹238.9 crore from ₹145.1 crore while the Ebitda margin improved to 11.7% from 10.3% during the period. It is within the peer range of 3.5-14%. Net profit rose 36% annually to ₹160 crore in FY26 from ₹86.6 crore in FY24. Return on equity increased to 24.6% in FY26 from 21.5% in FY24 compared with peer range of 1%-15.8%. Total debt rose sharply to ₹384 crore in FY26 from ₹40.9 crore in FY24 amid higher capital expenditure and increasing working-capital requirements. Its working capital cycle widened to 86 days in FY26 from 11 days in FY24.
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Valuation

The company demands a price-earnings (P/E) multiple of 15.6 on post-IPO basis compared with a P/E of 18.9 for KEC International, 57.6 for KEI Industries and 73.1 for Apar Industries.

The dollar held near an eight-day high on Thursday after U.S. inflation and other economic data slightly lifted expectations of a Federal Reserve rate hike, ahead of the Jackson Hole central bankers’ symposium due to begin later in the day.

Markets will also look to a speech and press conference by one of the Bank of Japan’s two deputy governors, Ryozo Himino, on Thursday for clues on the likelihood of ‌a September rate ⁠hike and ⁠the size and scope of any tightening path thereafter.

The U.S. Commerce Department data showed overnight that the Personal Consumption Expenditures ​Price Index increased 3.7% in the 12 months through July, unchanged from June and slightly above the 3.6% ​estimate of economists polled by Reuters. On a month-on-month basis, PCE rose 0.2% versus the estimate calling for a 0.1% increase, after falling 0.1% in June.

The reading on inflation kept the market’s ​expectation for a Fed rate hike by year-end live, though ⁠Chairman Kevin ‌Warsh’s upcoming speech at Jackson Hole “will be the ultimate test,” Westpac economist Ryan ​Wells said ​in a note.

The dollar index, which measures the greenback against a basket ⁠of currencies including the yen and the euro, rose 0.21% to ​99.13, its highest level since August 19.

Against the yen, the dollar traded ​at 159.23, having given back most of its intervention gains but still well off a multi-decade low of about 164, with traders awaiting Himino’s speech due at 0130 GMT.
“In a speech shortly before the rate hike at the January 2025 meeting, Himino said policymakers would ‘discuss and decide whether to raise interest rates,’” Mitsubishi UFJ Bank senior analyst Akihiko Yokoo said in a note. “If ‌similar wording is used this time, it would likely be taken as signaling a strong possibility of a rate hike at the September meeting.”Still, Yokoo added that ​active yen ​buying is likely to remain ⁠limited with Himino and Warsh due to speak.

Money markets are pricing in an 87% chance of a rate hike by the BOJ next month, according to data from money market broker Totan ​Tanshi.

The Canadian dollar held steady versus the greenback at C$1.388 per dollar. U.S. President Donald Trump said on Wednesday it was “time to teach Canada you can’t do this anymore,” just days after trade talks between the neighbouring countries broke down.

The euro traded at $1.1655, while the British pound was steady at $1.3592. The Australian dollar strengthened 0.18% versus the greenback to $0.7181 and New Zealand’s kiwi gained 0.1% at $0.5948.

In cryptocurrencies, bitcoin rose 0.55% to $78,874.60. Ether was up 1.07% to $2,498.35.

This article was written by

Conference Call Participants

Joseph Vruwink – Robert W. Baird & Co. Incorporated, Research Division
Brian Peterson – Raymond James & Associates, Inc., Research Division
Hoi-Fung Wong – Oppenheimer & Co. Inc., Research Division
Ryan Powderly-Gross – Barclays Bank PLC, Research Division
Alexei Gogolev – JPMorgan Chase & Co, Research Division
David Windley – Jefferies LLC, Research Division
Rishi Jaluria – RBC Capital Markets, Research Division
Tyler Radke – Citigroup Inc., Research Division
Jailendra Singh – Truist Securities, Inc., Research Division
Craig Hettenbach – Morgan Stanley, Research Division
Andrew DeGasperi – BNP Paribas, Research Division
Dylan Becker – William Blair & Company L.L.C., Research Division
Tamjid Md Moinuddin Chowdhury – Guggenheim Securities, LLC, Research Division
William Fitzsimmons – Piper Sandler & Co., Research Division
Ryan MacDonald – Needham & Company, LLC, Research Division
Scott Schoenhaus – KeyBanc Capital Markets Inc., Research Division

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