Lohia Corp's IPO saw a cautious response on its opening day, reaching only 0.39 times subscription by the end of trading. Priced between ₹404 and ₹425 per share, the offering is entirely an Offer for Sale, meaning no money goes to the company. Investors are assessing the firm's strong market position against valuation concerns and subsidiary losses.
Detailed Coverage
The initial share sale of Kanpur-based woven raffia machinery maker, Lohia Corp Limited, recorded a slow start as bidding opened on July 23, 2026. The total subscription reached 0.39 times by the end of the day, with interest split across different investor categories. Retail investors were the most active, booking 0.66 times their allotted portion, while Qualified Institutional Buyers subscribed to 0.43 times. Non-Institutional Investors recorded the lowest interest at 0.15 times.
Offer Structure and Financial Context
The IPO is entirely an Offer for Sale (OFS) of shares worth approximately ₹1,102 crore at the upper end of the ₹404–₹425 price band. Because it is an OFS, existing shareholders are selling their stakes, and the company will not receive any of the proceeds for its own business use. For the fiscal year ending March 2026, Lohia Corp reported a revenue of ₹1,717 crore, a 24.7 per cent increase from the previous year. The company recorded a profit after tax of ₹193 crore with an EBITDA margin of 18.6 per cent.
Market Position and Operational Risks
Lohia Corp maintains a strong footprint in its niche, holding a 40.7 per cent domestic market share and a 15.4 per cent global market share in the woven raffia machinery segment as of 2024. While the company demonstrates high return ratios, including a 38.9 per cent Return on Equity (RoE) and a 42.6 per cent Return on Capital Employed (RoCE), investors are weighing these against specific business risks. Revenue is highly concentrated, with more than 88 per cent coming from the woven raffia machinery business. This reliance makes the company sensitive to cyclical shifts in demand and potential volatility in raw material costs.
Valuation and Subsidiary Performance
At the current price band, analysts have noted that the IPO is fully valued, trading at a Price-to-Earnings (P/E) ratio of 23.21x based on FY26 earnings. Beyond core operations, potential investors are monitoring the financial health of the company's subsidiary, Leesona Corp, which reported losses of ₹243 crore in FY26. Additionally, the company carries an unhedged foreign currency exposure of ₹780 million, which can create financial sensitivity to exchange rate fluctuations. The IPO remains open for subscription until July 27, 2026, and the final subscription figures will be a key monitorable for market sentiment.