The Initial Public Offering (IPO) for Lohia Corp, a leading manufacturer of technical textile machinery, commenced bidding today, July 23. The Kanpur-based company is offering shares within a price range of Rs 404 to Rs 425 apiece, aiming to raise Rs 1,101 crore. Investors can apply for a minimum of 35 equity shares, with the issue scheduled to close on Monday, July 27.
This maiden stake sale is entirely an Offer-for-Sale (OFS) of up to 2,59,31,407 equity shares from promoters and existing shareholders. Consequently, Lohia Corp will not receive any direct proceeds from the issue.
Company Overview and Financial Performance
Incorporated in 2023, Lohia Corp specializes in machinery and equipment for technical textiles, particularly for producing polypropylene (PP) and high-density polyethylene (HDPE) woven fabric and sacks. As of March 31, 2026, the company boasts an impressive annual installed capacity, including 240 tape extrusion lines, 13,800 circular looms, and 108,000 winders.
Financially, Lohia Corp has demonstrated robust growth. For the fiscal year ended March 31, 2026, it reported a net profit of Rs 193.45 crore on a revenue of Rs 1,737.87 crore. This marks a significant increase from the previous year (FY25), where the company posted a net profit of Rs 117.84 crore with a revenue of Rs 1,386.47 crore. The company currently holds a market capitalization exceeding Rs 4,490 crore.
IPO Details and Grey Market Premium
Ahead of the IPO, Lohia Corp successfully raised Rs 492.11 crore from anchor investors, allocating 1,15,79,133 shares at Rs 425 each. Notable anchor investors included Societe Generale, Nomura Singapore, Aditya Birla Sun Life MF, Nippon India MF, ICICI Prudential MF, Motilal Oswal MF, and SBI Life Insurance, among others.
The IPO allocation reserves 75 percent for qualified institutional bidders (QIBs), 15 percent for non-institutional investors (NIIs), and 10 percent for retail investors. Market observers noted a grey market premium (GMP) of Rs 36-40 per share for Lohia Corp, suggesting potential listing gains of 8-9 percent for investors.
Equirus Capital and Motilal Oswal Financial Services are the book-running lead managers for the IPO, with MUFG Intime India serving as the registrar. Lohia Corp shares are expected to list on both BSE Ltd and NSE on Thursday, July 30.
Brokerage Recommendations
Several brokerage firms have issued recommendations on the Lohia Corp IPO, largely advising a 'subscribe' rating:
- Anand Rathi Shares & Stock Brokers: Rated 'Subscribe for long-term', citing Lohia Corp's strong position to capitalize on the growth in raffia machinery and technical textiles, despite the issue appearing fully priced at a P/E of 23.21 times.
- SBI Securities: Recommended 'Subscribe for long-term', highlighting the company's global leadership in technical textile machinery, strong growth in revenue, EBITDA, and PAT (24.7%, 45.5%, and 65.3% respectively in FY26), and robust return metrics.
- SMIFS: Advocated 'Subscribe', noting a diversified revenue mix, growing high-margin aftermarket business, healthy return ratios, and strong cash generation as reasons for confidence in long-term earnings.
- Master Capital Services: Issued a 'Subscribe for long-term' rating, emphasizing Lohia Corp's leadership in woven raffia machinery, integrated manufacturing, strong R&D, and global distribution network.
- Swastika Investmart: Recommended 'Subscribe', pointing to outstanding profitability (ROE of 36.8%, ROCE of 40.9%) and dominant market share (over 80% in India, 17.5% globally in raffia machinery). They noted the valuation premium over peers is justified by market leadership.
- KC Securities: Suggested a 'Subscribe for long-term' rating, considering Lohia Corp's global leadership, extensive export franchise across 100+ countries, and a favorable long-term industry outlook.
- BP Equities: Recommended 'Subscribe for medium to long-term horizons', finding the valuation justified by strong market share, R&D capabilities, global footprint, expanding operating margins, and high return on equity.
- Equivision: Rated 'Subscribe', recognizing Lohia Corp's plans to strengthen its position in conversion and processing machinery and expand into high-performance fibers, leveraging its manufacturing and distribution network.