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Lohia Corp operates in a niche but growing sector driven by demand in technical textiles and packaging. Its strong market share, particularly in India, and its global presence are significant advantages. However, the company’s financial performance, while showing strong recovery in FY 2025, experienced a dip in FY 2024, which warrants investor attention. Competition from established players and potential cyclicality in capital expenditure for machinery are risk factors.
Lohia Corp, a significant global player in the technical textile machinery sector, is preparing for its Initial Public Offering (IPO) with tentative dates set for July 22 to July 24, 2026. The company specializes in machinery for polypropylene (PP) and high-density polyethylene (HDPE) woven fabric and sacks, commonly known as raffia.
According to a F&S Report cited in the prospectus, Lohia Corp held a 15.4% share of the global woven raffia machinery market by revenue in Calendar Year 2024. Domestically, the company maintained a commanding 40.7% market share in India for Fiscal Year 2025. As of March 31, 2025, Lohia Corp operated six manufacturing facilities across India, the United States, and Italy, with substantial installed capacities.
The company’s product portfolio includes tape extrusion lines, circular looms, and tape winders. Cumulatively, Lohia Corp has sold over 2,300 tape extrusion lines, 468,000 winders, and 96,000 circular looms globally, representing a significant extrusion capacity. Its sales are split between the domestic Indian market (68%) and international markets (32%).
Lohia Corp’s operational strengths include advanced backward integration, in-house research and development, and a portfolio of over 116 granted patents globally. The company’s management believes these factors position it to capitalize on the growing demand for technical textiles, infrastructure-related packaging solutions, and automated conversion machinery.
The IPO will consist of an Offer For Sale (OFS) of 4,22,59,970 shares. The promoters of Lohia Corp are Raj Kumar Lohia, Gaurav Lohia, and Amit Kumar Lohia. The company is expected to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
SWOT Analysis: Lohia Corp IPO
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Global market leadership in raffia machinery with significant market share. Extensive manufacturing footprint and installed capacity. Strong R&D capabilities with over 116 patents. Backward integration and technological expertise. |
Financial performance showed a decline in revenue and net income in FY 2024 compared to FY 2023, though FY 2025 shows a strong recovery. Reliance on specific market segments (technical textiles, packaging). |
Rising global demand for technical textiles. Growth in infrastructure-led packaging solutions. Increasing adoption of automation in conversion machinery. Potential for international market expansion. |
Intense competition in the machinery manufacturing sector. Global economic slowdowns impacting capital expenditure for machinery. Supply chain disruptions and raw material price volatility. |
Peer Comparison Table
| Company | PE Ratio (as of latest available data) | EPS (INR) | RONW (%) | Net Profit (Cr.) | Revenue (Cr.) |
|---|---|---|---|---|---|
| Lohia Corp (Post-Issue Estimate) | – | 13.70 | 106.11 | 117.84 (FY 2025) | 1,376.87 (FY 2025) |
| Rajoo Engineers Limited | 54.91 | 2.32 | 23.35 | ~21.96 (FY23 PAT est. from financials) | 253.66 (FY23) |
| Mamata Machinery Limited | 29.32 | 16.56 | 23.81 | ~31.92 (FY23 PAT est. from financials) | 254.58 (FY23) |
| Jyoti CNC Automation | 74.13 | 13.90 | 18.74 | ~132.67 (FY23 PAT est. from financials) | 1,817.70 (FY23) |
Lohia Corp’s financial performance for Fiscal Year 2025 shows a notable increase in revenue to INR 1,376.87 crore and net income to INR 117.84 crore, with a corresponding margin of 8.56%. This marks a significant recovery from FY 2024, where revenue stood at INR 1,165.81 crore and net income at INR 29.76 crore, with a margin of 2.55%. FY 2023 reported revenue of INR 1,847.01 crore and net income of INR 56.76 crore, with a margin of 3.07%.
The company’s Return on Net Worth (RONW) for FY 2025 is projected at a strong 106.11%, indicating high profitability relative to shareholder equity. Its Debt/Equity ratio has also seen a reduction, standing at 0.47 as of FY 2025, down from 1.24 in FY 2023.
The tentative IPO opening and closing dates are July 22 and July 24, 2026, respectively. The basis of allotment is expected to be finalized on July 27, 2026, with refunds initiated on July 28, 2026. Shares are expected to be transferred to demat accounts on the same day, with the listing anticipated on July 29, 2026.
The allotment status for Lohia Corp IPO will be available on the website of MUFG Intime, the registrar for the issue. Investors can check the status via the provided link on IPO Central.
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