Lohia Corp IPO opens with ₹492 crore anchor backing
Lohia Corp has opened its public offering, drawing strong anchor demand despite being a complete promoter exit that leaves the company without fresh capital.
The Lohia Corp IPO opened for subscription on Thursday with a price band of ₹404 to ₹425 per share. Ahead of the launch, the machinery manufacturer secured ₹492 crore from anchor investors, indicating solid institutional appetite for the issue.
The offering is entirely an Offer for Sale of more than 2.59 crore equity shares. Because there is no fresh issue component, all proceeds will go to existing shareholders—including promoter Raj Kumar Lohia and other family members—rather than funding corporate expansion. For existing investors, the OFS structure means equity dilution without a corresponding strengthening of the company's balance sheet.
Lohia Corp manufactures machinery used to produce polypropylene and high-density polyethylene woven fabrics and sacks. The company holds a dominant position in its niche, controlling over 80% of the Indian market and 17.5% of the global raffia machinery segment. Its equipment is exported to more than 100 countries.
The IPO is priced at roughly 22 to 23 times estimated fiscal year 2026 earnings, a notable premium to peer Rajoo Engineers, which trades at 18 times. Analysts attribute this premium to Lohia's market leadership, robust patent portfolio, and strong financial returns. The company posted a return on equity of 36.8% and a return on capital employed of 40.9% as of March 2026.
Grey market activity suggests a positive but measured debut. The current premium of ₹36 implies a listing price around ₹461, representing an 8.5% gain over the upper price band. This premium has fluctuated between zero and ₹56 over the past six sessions.
Brokerages Swastika Investmart and Kantilal Chhaganlal Securities both recommend applying to the issue for long-term investment. While they expect only moderate listing gains, they cite the company's export franchise, diversified global customer base, and research capabilities as drivers for sustainable growth.
The issue closes on Monday, with 75% of shares reserved for qualified institutional buyers. Shares are scheduled to list on the BSE and NSE on Thursday, 30 July, with Equirus Capital acting as the lead manager.
