Synopsis: India’s IPO market is set to welcome another engineering player as Lohia Corp launches its public issue. With a 40% share in India’s Raffia machinery market, Lohia Corp has delivered strong financial growth and built a global presence, but investors must balance its niche leadership against the risks of a pure OFS and cyclical demand.
The public issue, priced at Rs.425 per share, is a complete offer-for-sale (OFS) of around 2.59 crore equity shares by the promoter family. At the upper end of the price band, the company is valued at approximately Rs.4,490 crore, with the issue size pegged at around Rs.1,100 crore. As of today, the GMP of the share stands at Rs.35, making the estimated listing at Rs.460 per share.
IPO Details
Offering: Pure OFS of up to 2.59 crore shares (no fresh issue) by promoter‐group sellers. The public offer is split among 75% QIBs, 15% NIIs and 10% retail (after a small employee quota).
Market Cap& Timeline: Anchor bidding on 22 July, issue open 23–27 July, basis of allotment 28 July, refunds and credit by 29 July, listing on 30 July. At Rs.425, post-IPO market cap will be ~Rs.4,490 crore.
Lot Size: Minimum 35 shares (1 lot, ≈Rs.14,875), maximum 455 shares (13 lots, ≈Rs.1.93 lakh) for retail. For S-NHI, minimum 490 shares (14 lots, ~Rs.2.08 lakh) and maximum 2,345 shares (67 lots, ~Rs.9.97 Lakh). The minimum for B-HNI is 2,380 shares (68 lots,~Rs.10.12 Lakhs).
Business Overview
Lohia Corp manufactures industrial machinery for the technical textiles sector, especially machines that make woven plastic (polypropylene/HDPE) bags and fabrics. Its product line includes tape extrusion lines, circular looms, coating/lamination machines, printing machines, yarn spinning equipment, recycling units and related spare parts.
The company has a leading presence in the woven “Raffia” sacks market – it claims about a 40.7% share of India’s Raffia-machinery segment by value. This niche caters to end‐use industries like agriculture, cement, chemicals and food grains (for bulk packaging). Lohia sells globally (leveraging exports and an overseas presence) and competes with peers such as Rajoo Engineers, Lakshmi Machine Works (LMW) and Mamata Machinery.
Financials
Lohia has seen strong growth in FY2026 (year to Mar 31, 2026). Revenue jumped ~24.7% to Rs.1,717 crore from Rs.1,376.9 crore a year ago, driven by healthy demand for its machines. Net profit rose 64.2% to Rs.193.5 crore from Rs.117.8 crore (FY2025), reflecting operational leverage as volumes climbed.
This implies industry-leading operating margins; the company’s profit after tax more than kept pace with revenue. Key metrics (from FY2026) include return on equity well above industry averages (indicative of asset-light manufacturing once scale is achieved). On these numbers, the IPO’s implied P/E is around 23.21, roughly in line with listed engineering peers (Rajoo, LMW, etc. trade in a similar P/E range).
Valuation and Peers
At the top of the band, Lohia’s post-issue market cap (~Rs.4,490 crore) and P/E (≈23–24× FY26 earnings) look reasonable against peers. For comparison, Rajoo Engineers (specialized plastic machinery) typically trades in a P/E of 20.7 times, while LMW (textile machinery) is often higher.
Lohia’s 11.2 percent PAT margin appear robust (driven by niche engineering products and export markets), which may justify a premium. Investors should note, however, that the entire issue is by existing shareholders – so the company takes no cash, and its valuation relies solely on future earnings growth potential.
Risks
Cyclical demand: Over 85% of Lohia’s revenue comes from woven Raffia machines. Demand for these machines depends on capital spending in agriculture, construction and related sectors (e.g. cement, fertilizer bagging). A slowdown in infrastructure or commodity cycles could dent orders.
Competition and technology: While Lohia is a market leader, there are established competitors (Rajoo, Mamata, LMW) and smaller/newer players. Global customers may also have alternatives (including Chinese machinery). Maintaining technology leadership and cost competitiveness is key.
Regulatory/Environmental Factors: The woven plastics industry faces environmental scrutiny; any regulations on single-use plastics or import duties can indirectly impact demand for new machines.
None of these risks are fatal, but they suggest caution in assuming past growth rates will persist. Investors should also recognize that because this is an OFS, the price movement after listing will be determined purely by market sentiment on the business, with no new cash fueling expansion.
Investor Takeaways
Lohia Corp’s IPO offers a way to play India’s shift toward organized manufacturing in technical textiles. The valuation is not cheap, but the premium is mitigated by the company’s leading market share (40.7% in Raffia machines) and strong recent growth.
The largest attraction is Lohia’s exposure to global demand for plastic woven sack machinery (a growing niche with a ~10% CAGR in India projected) and its high-margin business(19.7 percent EBITDA to Revenue). On the flip side, investors should watch how Lohia defends its niche as industry dynamics evolve.
In summary, the IPO gives diversified exposure to industrial machinery and export markets, with some margin of safety since peers trade at similar or higher multiples. The main question for new investors is whether future order flow (and pricing) stays strong as competition intensifies.
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