Lumino Industries has fixed the price band for its initial public offering (IPO) at Rs 78-82 per share, with the Rs 700 crore issue set to open for subscription on August 27 and run through August 31.

The offering is structured in two parts: a fresh issue of shares worth Rs 500 crore and an offer-for-sale (OFS) amounting to Rs 200 crore. In a fresh issue, the proceeds go directly to the company, while money raised through an offer-for-sale is received by existing shareholders who sell part of their holdings.

According to the company, the funds raised are earmarked for repayment of debt and the upgrading of equipment, reinforcing its focus on power cable and electrical wire manufacturing.

The price band defines the range within which investors may place their bids during an IPO's book-building process. In India, IPOs follow this book-building mechanism, in which the final issue price is determined on the basis of demand from bidders within the announced band; once the subscription window closes on August 31, the final price is fixed, shares are allotted to successful bidders, and the stock is subsequently listed on the exchanges. A crore equals ten million, meaning the total issue size of Rs 700 crore corresponds to Rs 7 billion.

Lumino Industries operates in the power cable and electrical wire segment, which caters to power transmission and distribution networks as well as construction, housing, and industrial demand, and the planned use of proceeds points to a balance-sheet cleanup combined with capacity and capability enhancement in its core manufacturing business.

Source: Economic Times Markets