Lohia Corp's ₹1,102 crore IPO is now open for subscription at a price band of ₹404-₹425 per share. The offering is an Offer for Sale, meaning no proceeds will go to the company. Investors should note that the company reported a net profit of ₹193 crore for FY26.
Detailed Coverage
Lohia Corp Limited has launched its Initial Public Offering (IPO) to raise ₹1,102 crore from the public. The subscription window is open until July 27, with shares priced in the range of ₹404 to ₹425. This issue is entirely an Offer for Sale (OFS), meaning that existing shareholders are selling their stake, and the company itself will not receive any of the money raised through this process.
Anchor Investor Participation
Ahead of the public opening, the company successfully raised ₹492 crore from anchor investors. This anchor portion was allocated at the upper end of the price band, ₹425 per share. Institutional participation included several major domestic mutual funds, such as ICICI Prudential, Kotak Mahindra, Nippon India, Motilal Oswal, and Aditya Birla Sun Life. Additionally, insurance companies and global investors like Nomura Singapore and Citigroup Global Markets Mauritius also invested in the pre-IPO round.
Financial Performance and Growth
Lohia Corp specializes in manufacturing machinery for technical textiles, specifically for woven fabric and sack production. For the fiscal year ending March 2026, the company reported revenue of ₹1,717 crore, growing from ₹1,376.87 crore in the previous year. Net profit also saw significant growth, rising to ₹193.45 crore in FY26 compared to ₹117.84 crore in the year prior. The company maintains a healthy financial profile with a debt-to-equity ratio of 0.12x, reflecting low use of borrowings.
Market Position and Valuation
The company reports a strong hold on the domestic market, with a 40.7% market share in the woven raffia machinery segment. Based on the upper price band of ₹425, the company is seeking a post-issue market capitalization of roughly ₹4,490 crore. This values the stock at a price-to-earnings (P/E) ratio of approximately 23.21x based on FY26 earnings. With a return on equity (RoE) of 38.9% and return on capital employed (RoCE) of 42.6% for FY26, the company shows strong operational efficiency in terms of generating profit from the capital invested. EBITDA margins have also improved to 18.6%.
Important Considerations for Investors
Because this is an Offer for Sale, the capital raised will go to the selling shareholders rather than back into the company for business expansion or debt repayment. Investors should monitor how the company maintains its market share and profit margins in the coming quarters. The stock is expected to list on the BSE and NSE on July 30. Future updates to track include the final subscription status from retail and institutional categories and any post-listing management commentary regarding demand for technical textile machinery.