The global leader in woven Raffia machinery — supplying nearly 100 countries — hits the market with a Rs 1,102 crore pure offer-for-sale
Lohia Corp Ltd., one of the leading global manufacturers of machinery and equipment for technical textiles, opens for subscription on July 23 with the issue closing on July 27. The company held a 15.4% share of the global woven Raffia machinery market by value in 2024 and a dominant 40.7% domestic market share in FY25. This being a pure Offer for Sale, no proceeds go to the company — the issue provides an exit to existing stakeholders and unlocks listing and visibility benefits.
What the Company Does
Lohia Corp manufactures a comprehensive suite of machinery including tape extrusion lines, circular looms, coating and lamination lines, printing machines, multifilament yarn machines, monofilament extrusion lines, and recycling machines, along with spare parts. The machines it manufactures enable customers to produce woven PP and HDPE fabric and sacks — referred to as Raffia — used across a vast range of applications including cement, fertilizer, chemical, and food grain packaging, shopping bags, FIBCs, roof underlayment, tarpaulin, geotextiles, and ropes and twines.
The company operates six manufacturing facilities — two in Kanpur and two in Bengaluru in India, one in Burlington, North Carolina (USA), and one in Como, Italy — along with a live experience centre in Kanpur. Its intellectual property base includes 71 patents in India, 56 abroad, eight design registrations, and 54 trademarks. It supplies to nearly 100 countries through a global sales network with offices in Brazil, Russia, Thailand, UAE, and the USA. As of March 31, 2026, it had 2,010 permanent employees and an additional 1,099 contractual employees, and an order book of Rs 1,358.52 crore.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | July 23, 2026 |
| Issue Closes | July 27, 2026 |
| Price Band | Rs 404 – Rs 425 per share |
| Face Value | Re 1 |
| Issue Size | Rs 1,102.08 crore (at upper cap) |
| Issue Type | Entirely Offer for Sale |
| Total Shares | 2,59,31,407 shares |
| Minimum Lot | 35 shares |
| Employee Discount | Rs 40 per share |
| Post-Issue Market Cap | Rs 4,490.13 crore (at upper cap) |
| Issue Constitutes | 24.54% of post-IPO equity |
| QIB / NII / Retail Split | 75% / 15% / 10% |
| BRLMs | Equirus Capital, Motilal Oswal Investment Advisors |
| Registrar | MUFG Intime India Pvt. Ltd. |
| Listing | BSE and NSE |
Since this is a pure OFS, the paid-up equity capital remains unchanged at Rs 10.57 crore post-issue.
Financial Performance
The company’s consolidated financials are available for FY25 and FY26, with FY24 available only as a special purpose combined and carved-out statement reflecting pre-consolidation operations.
| Particulars (Rs cr) | FY24 (Special Purpose) | FY25 (Consol) | FY26 (Consol) |
|---|---|---|---|
| Total Income | 1,173.60 | 1,386.47 | 1,737.87 |
| Net Profit | 29.76 | 117.84 | 193.45 |
| PAT Margin | 2.54% | 8.50% | 11.13% |
| RoCE | 10.45% | 30.45% | 40.92% |
The improvement in post-consolidation performance is striking — PAT margins have expanded from 2.54% in the pre-consolidation carve-out to 8.50% in FY25 and 11.13% in FY26, and RoCE has nearly quadrupled over the same period. The company has also demonstrated revenue balance across geographies, with domestic revenue of Rs 992.74 crore and overseas revenue of Rs 724.26 crore in FY26. The company has paid a dividend of 175% for FY26 and 150% for the ongoing fiscal year so far. The average RoNW across the reported periods stands at 73.83%.
Valuation and Peer Comparison
At the upper band of Rs 425, the issue is priced at a P/E of 23.21x on FY26 earnings and 38.12x on FY25 earnings, and at a P/BV of 8.61x on NAV of Rs 49.37 per share. Independent analysts consider the issue fully priced, though the quality of earnings improvement post-consolidation provides some comfort.
| Company | P/E (x) |
|---|---|
| Lohia Corp | 23.21 (FY26) |
| Mamata Machinery | 56.0 |
| Jyoti CNC | 54.4 |
| Windsor Machines | 2,506.0 |
Note that these peers are not directly comparable — they operate in different machinery sub-segments — and the comparison should be treated with caution.
In its note, Kantilal Chhaganlal Securities states: “Lohia Corp Limited is a global leader in woven Raffia machinery, exporting to more than 100 countries and serving a diversified customer base across packaging, agriculture, infrastructure, and geotextiles. At the upper price band, the IPO is valued at 22.1x FY26E P/E, which appears fairly valued considering the company’s global market leadership, strong export franchise, and favourable long-term industry outlook.” The brokerage recommends investors to Apply with a long-term investment horizon.
In the grey market, Lohia Corp is currently commanding a grey market premium of around Rs 36–40 per share.
Risks to Consider
The issue is a pure OFS with no fresh capital deployed into the business, so no debt is being repaid and no new capacity is being funded from this IPO. The consolidated financial history is limited to two full years (FY25 and FY26), making it harder to assess the durability of the margin expansion. Contingent liabilities of Rs 48.74 crore as of March 31, 2026 are worth monitoring.
The company has shown inconsistency in its domestic-to-export revenue ratio across periods — a structural feature of a machinery business dependent on lumpy order flows from global markets — and geography-level demand shifts could affect the revenue mix. The Raffia machinery market is inherently cyclical, linked to capital expenditure decisions by packaging companies worldwide.