Lohia Corp IPO Smashes Expectations: Grey Market Premium Suggests Massive Listing Surge as Technical Textile Giant Seeks Capital Infusion
Lohia Corp, a key player in the global machinery market for technical textiles, is set to open its Initial Public Offering (IPO) on July 23. The issue is valued at Rs 1,101.28 crore and has attracted notable interest in the grey market, suggesting strong enthusiasm from prospective investors.The IPO structure is entirely an Offer for Sale (OFS), comprising over 2.59 crore equity shares. This means that the proceeds generated from the listing will be distributed to existing shareholders rather than providing capital injection directly into the company. The public subscription window is open from July 23 to July 27.
Market Sentiment and Pricing Details
Market trackers indicate a significant grey market premium (GMP) for the IPO, currently standing at Rs 36 per share. This unofficial indicator suggests an estimated listing price of around Rs 461, which represents approximately an 8.5% premium over the upper limit of the price band.The price band for the issue has been set firmly between Rs 404 and Rs 425 per share. While the GMP provides a strong indicator of market sentiment, it must be noted that the grey market value does not guarantee actual listing gains on the stock exchanges.
Business Growth and Financial Trajectory
Incorporated in 2023, Lohia Corp specializes in manufacturing essential machinery and equipment for technical textiles. These products are vital inputs for industries producing woven fabric and sacks from materials like polypropylene (PP) and high-density polyethylene (HDPE).The company's robust financial health is evidenced by strong growth metrics reported for FY26. Net profit surged by 64% year-on-year, rising to Rs 193 crore from Rs 118 crore in the previous fiscal year. Concurrently, revenue from operations demonstrated a solid increase of 25%, reaching Rs 1,717 crore compared to Rs 1,377 crore earlier.
IPO Structure and Investment Guidelines
The public issue mandates a lot size of 35 shares. For retail investors participating in the offering, the minimum investment required at the upper price band is Rs 14,875.Equirus Capital Ltd and Motilal Oswal Investment Advisors Ltd have been appointed as the book-running lead managers for the IPO. MUFG Intime India Pvt. Ltd. serves as the registrar for the issue. The allotment process is scheduled to conclude on July 28, with the company’s shares expected to debut on both NSE and BSE on July 30.
Key Promoter Stake Sale in OFS
The Offer for Sale includes stakes from several key promoter shareholders, who are participating to offload their holdings. Raj Kumar Lohia is offering up to 167.28 lakh shares, while Gaurav Lohia plans to sell 22.18 lakh shares. Amit Kumar Lohia and Ritu Lohia have listed offerings of 9.20 lakh and 16.71 lakh shares, respectively.Beyond the core promoter group, other shareholders are also part of the OFS. This includes Alok Kumar Lohia offering 21.71 lakh shares, Anurag Lohia selling 11.38 lakh shares, and Anuja Lohia offloading 10.85 lakh shares.
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