Lohia Corp IPO Gains Momentum: Subscribed 45% on Day Two as Strong Fundamentals Meet Grey Market Premium

Lohia Corp IPO Gains Momentum: Subscribed 45% on Day Two as Strong Fundamentals Meet Grey Market Premium​

Lohia Corp, a key manufacturer in the technical textiles industry, saw its initial public offering (IPO) maintain interest through the second day of trading. As of 11:15 am on July 24, data from the National Stock Exchange (NSE) indicated that the issue had achieved approximately 45 percent subscription. The company's IPO is structured as a complete offer for sale (OFS), offering existing shareholders 2.59 crore equity shares.

The public issue sought bids for 62,42,040 shares against 1,43,52,274 shares on offer, resulting in a consolidated subscription rate of 43 percent. Retail investors (RIIs) spearheaded the demand, achieving an impressive 84 percent subscription. Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) contributed at 43 percent and 19 percent, respectively.

Investor Sentiment Driven by Grey Market Premium (GMP)​

Market observers have highlighted a healthy grey market premium (GMP) for the Lohia Corp IPO, which stood at Rs 15. This unofficial metric suggests an expected listing gain of around 3.5 percent, calculated against the upper end of the price band.

While this GMP signals robust investor sentiment ahead of the listing, it is important to note that grey market premiums are inherently speculative and remain subject to fluctuation before the official trading date. The IPO has set a clear price band for investors ranging from Rs 405 to Rs 425 per share.

Financial Strength Underpins Lohia Corp Valuation​

The company’s financial performance paints a picture of significant growth, demonstrating its operational strength in FY26. Total income witnessed a substantial rise of 25.3 percent year-on-year, climbing to Rs 1,737.87 crore from Rs 1,386.47 crore reported in the previous fiscal year (FY25).

Profit after tax (PAT) also saw a remarkable jump of 64.2 percent, reaching Rs 193.45 crore. Furthermore, EBITDA increased by 48.5 percent to Rs 339.45 crore, highlighting strong profitability improvements. As of March 31, 2026, the company reported total assets amounting to Rs 1,304.66 crore, with reserves and surplus standing at Rs 519.16 crore.

IPO Structure and Listing Details​

Lohia Corp is a manufacturer specializing in machinery for the technical textiles industry, catering to packaging and industrial applications such as cement and fertiliser bags. The company holds an 80 percent market share across India and commands a 17.5 percent global share in the raffia machinery segment.

The offering provides specific investment tiers ranging from retail investors (who must invest at least Rs 14,875 for one lot) to institutional investors. Small HNIs are advised to make a minimum investment of Rs 2,08,250 across 14 lots.

The allotment for the IPO is scheduled to be finalized on July 28, 2026. The company’s shares are tentatively slated to list on both the BSE and NSE starting July 30, 2026. Equirus Capital Ltd. serves as the book-running lead manager for this issue.