Lohia Corp's IPO closed with 7.25 times subscription, led by strong interest from Qualified Institutional Buyers on the final day. Investors bid for over 10 crore shares against the 1.43 crore offered. The woven raffia machinery maker is set to list with a price band of ₹404-₹425 per share.
Detailed Coverage
Lohia Corp Limited concluded its initial public offering on Monday, witnessing a late-stage surge in demand that pushed the total subscription to 7.25 times. By the end of the bidding period, investors had submitted bids for 10.40 crore shares, significantly higher than the 1.43 crore shares available to the public.
Institutional Interest and Segment Breakdown
The Qualified Institutional Buyer (QIB) segment was the primary driver of this demand, finishing with a subscription rate of 9.11 times. Institutional appetite remained cautious during the first two days, with the category only 0.51 times subscribed, but heavy participation from Foreign Institutional Investors and mutual funds on the final day changed the momentum. Foreign investors alone placed bids for 3.91 crore shares.
Other investor segments also showed healthy participation. Non-Institutional Investors subscribed 6.82 times, while Retail Individual Investors saw their reserved portion subscribed 2.77 times. The portion reserved for employees was subscribed 1.39 times.
Financial Context and Market Position
Lohia Corp is a significant manufacturer in the woven raffia machinery space, holding a domestic market share of 40.7%. For the financial year 2026, the company reported total revenue of ₹1,717 crore with an EBITDA margin of 18.6%. The company is positioning itself for a post-issue market capitalization of approximately ₹4,490 crore at the upper end of its price band.
From a profitability perspective, the company shows strong return ratios, with a Return on Equity of 38.9% and Return on Capital Employed of 42.6%. However, potential investors have noted that the valuation is fully priced, with the P/E ratio estimated at 23.21 times based on FY26 earnings.
Key Risks to Consider
While the company holds a strong position in its niche, there are structural risks that stakeholders may track. Reports have highlighted concerns regarding losses in certain subsidiaries, which can impact consolidated financial performance. Additionally, the company faces exposure to unhedged foreign exchange fluctuations. Since a significant portion of the machinery business may involve international trade or raw material imports, currency volatility can influence profit margins.
The final benefit for shareholders will depend on the company's ability to maintain its market share against competition and manage the execution of its order book effectively. Following the closure of the IPO, investors will now track the share allotment process and the subsequent listing date on the stock exchanges.