Lohia Corp's ₹1,102 crore IPO opens at ₹404-425 band. Anchor investors include ICICI Prudential, Kotak, Citigroup. Analysts recommend long-term subscribe.
Lohia Corp’s initial public offering opened for subscription today, with shares priced between ₹404 and ₹425 apiece. The company aims to raise ₹1,102 crore through an entirely offer-for-sale structure, meaning no proceeds will go to the company itself. The selling shareholders include promoters Raj Kumar Lohia, Amit Kumar Lohia, Gaurav Lohia and Ritu Lohia, along with other members of the promoter group.
The IPO allocated 75% of the net offer to qualified institutional buyers, 15% to non-institutional investors and 10% to retail investors. Retail investors can bid for a minimum of 35 shares and in multiples thereafter. The issue closes on July 28, with shares expected to list on the BSE and NSE on July 30.
Lohia Corp raised ₹492 crore from anchor investors on Wednesday, allotting 1.15 crore shares at ₹425 each. The anchor list includes ICICI Prudential Mutual Fund, Kotak Mahindra MF, Nippon India MF, Motilal Oswal MF, Aditya Birla Sun Life MF, SBI Life Insurance, Tata AIA Life Insurance, Canara Robeco MF, Ashoka India Equity Investment Trust Plc, Edelweiss Life Insurance, and offshore investors such as Citigroup Global Markets Mauritius, Societe Generale and Nomura Singapore.
Incorporated in 2023, the company is a global manufacturer of machinery and equipment for technical textiles, with a focus on polypropylene and HDPE woven fabric and sacks. Its revenue from operations rose to ₹1,717 crore in FY26, up from ₹1,376.87 crore a year earlier. Net profit jumped to ₹193.45 crore from ₹117.84 crore, a 65% increase.
Anand Rathi analysts assigned a “Subscribe for Long Term” rating, noting the company's P/E of 23.21x on annualized FY26 earnings and a post-issue market cap of roughly ₹4,490 crore. They flagged the company's healthy balance sheet with a debt-to-equity ratio of 0.12x and a price-to-book value of 8.61x. The analysts said Lohia Corp is well positioned to benefit from long-term growth in raffia machinery and technical textiles, supported by its product portfolio, manufacturing capabilities and global distribution network. They cautioned that revenue is heavily concentrated in the woven raffia segment, exposing it to cyclical demand and competitive intensity.
Another brokerage, in its valuation note, said the company holds a dominant 40.7% domestic market share in the woven raffia machinery segment and operates six manufacturing facilities globally. Revenue, EBITDA and PAT grew 24.7%, 45.5% and 65.3% respectively in FY26. EBITDA margin expanded to 18.6%, with return on equity at 38.9% and return on capital employed at 42.6%. Debt-to-equity stood at 0.3x. At the upper price band, the issue is valued at a P/E of 22.1x on FY26 earnings, which the brokerage called attractive relative to listed machinery peers. It recommended investors subscribe for the long term.
Equirus Capital and Motilal Oswal Investment Advisors are the book-running lead managers for the issue. MUFG Intime India is the registrar.
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