Lohia Corp IPO price band set at ₹404-₹425 per share; issue opens on July 23

Lohia Corp's IPO opens on July 23, 2026, and closes on July 27. The issue is a mainboard book-build IPO of ₹1,101.28 crore, entirely an offer for sale of 2.59 crore shares. No fresh capital enters the company.

Introduction

Lohia Corp is a Kanpur-based manufacturer of machinery for technical textiles, primarily for making polypropylene and HDPE woven fabric and sacks. It is one of the larger players globally in woven raffia machinery and has an international presence across five countries. The financials are strong: revenue up 25% and PAT up 64% in FY26. The ask is whether the valuation at 23.21x P/E reflects that story fairly.

Lohia Corp IPO: Key highlights

About Lohia Corp Limited

Lohia Corp is one of those businesses that operates in a niche most investors have never heard of but which touches nearly every industry. Woven polypropylene sacks carry cement, fertiliser, food grains, and chemicals. The machines that make those sacks come from companies like Lohia Corp. Founded in Kanpur in 1981 and incorporated as a holding company in 2023, the business has had four decades of operational history before this listing.

Company overview

Lohia Corp is headquartered at Panki Industrial Estate in Kanpur, Uttar Pradesh. As of March 31, 2026, it had 2,010 permanent employees and owned 54 trademarks, 71 patents in India, and 56 patents outside India. Promoters are Raj Kumar Lohia, Gaurav Lohia, and Amit Kumar Lohia, holding 95.61% pre-IPO and 75.24% post-IPO.

Technical textile machinery business

The core business is manufacturing machinery for producing woven raffia fabric and sacks from polypropylene and HDPE. Products include tape extrusion lines, circular looms, winders, and conversion machines. The company claims market leadership in India and a top position globally in this specific segment.

Global manufacturing presence

Lohia Corp has international offices in Brazil, Russia, Thailand, the UAE, and the USA; warehouses in India, the USA, and the UAE; and stockists in eight countries. Installed annual capacity as of March 31, 2026, was 240 tape extrusion lines, 13,800 circular looms, and 108,000 winders.

Key products and solutions

Products span the full woven fabric production chain: tape extrusion lines, circular looms, coating and lamination lines, printing and conversion machines, multifilament yarn machines, twister winders, monofilament extrusion lines, and recycling machines, along with related spare parts.

Lohia Corp IPO dates and timeline

Lohia Corp IPO price band, lot size & minimum investment

The price band is ₹404 to ₹425. One lot is 35 shares. Minimum retail investment at the upper band is ₹14,875. Retail investors can apply for up to 13 lots, which is 455 shares at ₹1,93,375. Small HNIs need 14 lots minimum (490 shares at ₹2,08,250). Large HNIs need at least 68 lots (2,380 shares at ₹10,11,500). QIBs get at least 75% of the net offer, retail 10%, and HNIs 15%. Employees get a discount of ₹40 per share. Applications go through UPI or ASBA.

Lohia Corp IPO issue size and offer structure

The Lohia Corp IPO is a 100% offer for sale. No fresh capital is being raised and no proceeds go to the company. This is an exit by existing shareholders, not a capital raise.

Total issue size

₹1,101.28 crore, comprising 2,59,31,407 equity shares of ₹1 face value at the upper price band of ₹425.

Offer for sale (OFS)

The entire issue is an OFS. Pre-issue shares outstanding are 10,56,50,000 and post-issue shares outstanding remain the same at 10,56,50,000. No dilution.

Selling shareholders

The selling shareholders are the promoter group: Raj Kumar Lohia, Gaurav Lohia, and Amit Kumar Lohia. Promoter holding reduces from 95.61% to 75.24% post-issue.

Why there is no fresh issue

Lohia Corp's financials suggest it does not need external capital. Total borrowings fell from ₹212.16 crore in FY25 to ₹152.78 crore in FY26, and the debt-to-equity ratio stands at a comfortable 0.23. The listing is primarily a liquidity event for promoters.

About the business: How Lohia Corp generates revenue

Lohia Corp's revenue comes from several parts of the technical textile machinery chain. The business has built out a diversified offering across equipment, geography, and revenue type.

Technical textile machinery

The primary revenue stream. Tape extrusion lines, circular looms, and winders sold to manufacturers producing woven PP and HDPE fabric. These go into sacks for cement, fertiliser, food grain, polymer, chemicals, and minerals, as well as FIBCs, container liners, and shopping bags.

Packaging machinery

Machines for coating, lamination, printing, and conversion of woven fabric into finished packaging products. This segment sits downstream of the core loom and extrusion business.

Industrial equipment

Machinery for non-packaging end uses: tarpaulins, geotextiles, ground covers, carpet backing, ropes, and twines. Diversifies the revenue base beyond commodity packaging.

Export business

A significant portion of revenue comes from international customers. Offices in five countries and stockists in eight markets give the company geographic spread that reduces dependence on the Indian market alone.

After-sales service and spare parts

Recurring revenue from spare parts and servicing installed machines is a margin-accretive stream that grows with the installed base. Historically in machinery businesses, after-sales revenue compounds as more machines get sold over time.

Financial performance

Revenue grew 25% and PAT grew 64% in FY26 over FY25. Margins have improved meaningfully.

The combination of revenue growth, margin expansion, and debt reduction in the same year is not common. ROE of 36.80% and ROCE of 40.92% are high for a manufacturing business.

IPO valuation analysis

At ₹425, the post-issue P/E is 23.21x on FY26 EPS of ₹18.31. Pre-IPO P/E was the same since this is a pure OFS with no dilution.

For context, the industrial products sector has seen listed peers trade anywhere from 9x to 54x depending on growth profile and market positioning. At 23.21x, Lohia Corp sits in a reasonable range given the ROE and ROCE profile. An EBITDA margin of 19.53% and a PAT margin of 11.13% are strong for a capital goods manufacturer. The price-to-book of 8.61 is elevated but is a function of the high return ratios rather than aggressive pricing. The more relevant question is whether FY27 can sustain the growth trajectory that FY26 delivered.

Key strengths of Lohia Corp

• Claimed market leadership in India and a leading global position in woven raffia machinery, a segment with meaningful entry barriers given the IP and manufacturing complexity
• 71 patents in India and 56 outside India, along with 54 trademarks, suggest genuine R&D depth rather than commodity manufacturing
• A debt-to-equity of 0.23 and declining borrowings give the balance sheet room to absorb any demand slowdown
• ROE of 36.80% and ROCE of 40.92% indicate the business generates strong returns on the capital it deploys
• After-sales and spare parts revenue creates a recurring income stream that grows with the installed machine base
• International offices in five countries and stockists in eight reduce geographic concentration risk

Risks investors should consider

• This is a 100% OFS. Promoters are taking money off the table at what they believe is a good valuation. New investors are buying at that same price
• Retail gets only 10% of the net offer, which is unusually low for a mainboard IPO. QIBs dominate with 75%, meaning institutional appetite will determine allotment for most applicants
• Revenue is concentrated in woven raffia machinery. Any shift in packaging material preferences, particularly toward alternatives to PP woven sacks, would affect demand
• Export revenue introduces currency risk and exposure to global economic cycles that domestic-only manufacturers don't carry
• The IPO is entirely dependent on the promoter exit narrative. Without a fresh issue, there is no direct use-of-proceeds story to evaluate

Should you track the Lohia Corp IPO?

Lohia Corp is a genuinely strong manufacturing business with real IP, global reach, improving margins, and a clean balance sheet. The financial trajectory in FY26 is hard to argue with.

The concern is not the business. It is the structure. A 100% OFS at P/E 23.21x means you are paying promoters a fair price for a proven business, not getting early-stage exposure. The 10% retail quota also means allotment probability is low for most retail applicants.

For long-term investors who understand technical textile machinery and believe in the recurring revenue model from spare parts, this could work at the current valuation. For those looking for listing gains, the absence of a fresh issue narrative and the limited retail float make this a more uncertain short-term call.

Conclusion

Lohia Corp is a real business with strong fundamentals, a global presence, and financials that improved meaningfully in FY26. The 100% OFS structure and the 10% retail quota are the two things worth pausing on. The valuation at 23.21x P/E is neither cheap nor expensive given the return ratios. Read the RHP carefully, check the FY27 order pipeline if disclosed, and size the position accordingly.