Lohia Corp has secured ₹492 crore from 27 anchor investors ahead of its ₹1,102 crore IPO. The issue, which opens on July 23, is entirely an offer-for-sale by the promoters. Investors should note that since the company does not receive any funds from this IPO, the proceeds will go directly to the selling shareholders.
Detailed Coverage
Lohia Corp, a Kanpur-based manufacturer specializing in technical textiles machinery, has finalized its anchor book allocation. The company raised ₹492.11 crore from 27 institutional investors ahead of its public issue scheduled to open on July 23. The total size of the initial public offering (IPO) is ₹1,102 crore, with the price band for the shares set between ₹404 and ₹425.
IPO Structure and Shareholder Impact
The public offering consists entirely of an offer-for-sale (OFS) of 2.59 crore equity shares. In an offer-for-sale, existing shareholders—in this case, the Lohia family—sell their shares to the public. Because this is an OFS, Lohia Corp itself will not receive any capital from the IPO proceeds. Instead, the money will be paid to the promoters after accounting for the costs associated with the issue. For potential investors, this means the IPO will not directly fund expansion, debt reduction, or working capital needs for the company's business operations.
Anchor Investor Participation
The anchor round saw participation from a mix of global and domestic financial institutions. Notable names include Nomura Singapore, Citigroup, and Societe Generale. Domestic interest was also significant, with major mutual funds and life insurance companies such as ICICI Prudential AMC, Nippon Life India, SBI Life Insurance, Tata AIA Life Insurance, and Motilal Oswal AMC receiving allocations. The company allocated 1.15 crore equity shares to these participants at the upper end of the price band, signaling institutional interest in the company's niche business model.
Business Operations and Market Position
Lohia Corp serves the technical textiles sector, specifically focusing on equipment used to produce polypropylene and high-density polyethylene woven fabrics and sacks, often referred to as Raffia. The company maintains a global footprint with six manufacturing plants across India, the United States, and Italy. As of March 2026, the company reported a large production infrastructure, including 240 tape extrusion lines and 13,800 circular looms.
While the company holds a strong position in the domestic woven Raffia machinery segment, investors may want to monitor future demand trends for these specialized machines. The machinery sector is often linked to broader industrial and packaging demand, which can fluctuate based on global economic conditions. Furthermore, because the company has significant manufacturing operations in multiple countries, it may be sensitive to currency fluctuations and international trade regulations. Investors should track how the company maintains its order book and whether it can continue to sustain its manufacturing efficiency in a competitive industrial goods environment as it transitions to a publicly traded entity.