Lohia Corp Limited IPO

    Summary:


    Lohia Corp Limited makes machines for the technical textile industry. Its focus is on machines that produce PP and HDPE woven fabric and sacks. The business traces its roots to 1981. It now runs six plants across India, the USA and Italy and sells to customers in around 100 countries.

    The company reported revenue of ₹1,717.00 crore and profit after tax of ₹193.45 crore in FY2026. Margins have grown and net debt has fallen over recent years. Its market position, product range and global sales network are notable features of the business.

    At the same time, the offer is entirely an Offer for Sale, so the company will not receive any funds. Investors may also weigh risks linked to product concentration, currency moves, competition and the company's short standalone history.

    Lohia Corp IPO:

    India's technical textile machinery industry makes machines behind woven sacks, bulk bags and tarpaulins. These products pack cement, fertiliser, food grain, chemicals and minerals. According to the industry report cited in the Red Herring Prospectus (RHP), the global woven raffia machinery market stood at about US$ 1,008 million in 2024 and is projected to reach US$ 1,369 million by 2030.

    Lohia Corp Limited has filed its Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company makes machinery for technical textiles. Its focus is on machines that produce woven fabric and sacks from polypropylene (PP) and high-density polyethylene (HDPE). This segment is known as raffia.

    For investors who want to understand the company's operations, financial performance, industry position and business risks, the RHP explains how the company earns revenue and how the offer is structured. This article breaks down the key information from the RHP in a simple format.

    IPO Details

    The table below highlights the key details of the public issue as stated in the RHP.

    Particulars

    Details

    IPO Type

    Book Built Offer

    Anchor Investor Bidding Date

    Tuesday, 22 July 2026

    IPO Open Date

    Thursday, 23 July 2026

    IPO Close Date

    Monday, 27 July 2026

    Face Value

    ₹1 per equity share

    Price Band

    ₹404 to ₹425 per share

    Lot Size

    35 shares

    Fresh Issue

    Not applicable

    Offer for Sale

    Up to 2,59,31,407 equity shares

    Total Issue Size

    Up to 2,59,31,407 equity shares

    Employee Reservation

    Up to 2,00,000 equity shares

    Listing Exchange

    NSE and BSE

    The IPO is entirely an Offer for Sale (OFS). There is no Fresh Issue portion.

    Under the OFS, existing shareholders are selling part of their holding. The sellers include promoters Raj Kumar Lohia, Gaurav Lohia and Amit Kumar Lohia, along with promoter group and other shareholders. The money from the OFS will go to the selling shareholders, not the company. The company will not receive any funds from this offer.

    The RHP also sets aside up to 2,00,000 equity shares for eligible employees. Employees bidding in this portion may get a discount on the offer price, subject to approvals.

    About the Company

    Company Background

    Lohia Corp Limited was incorporated on 5 June 2023 as Kanpur Packaging Machines Limited. The technical textile machinery business of the erstwhile Lohia Corp Limited (now LTS Holdings Private Limited) was moved into the company through a scheme of arrangement. The National Company Law Tribunal approved the scheme in April 2024. It became effective on 1 May 2024, and the company then took its present name.

    The business itself is much older. The demerged company was set up in 1981 as a joint venture with an Austrian machinery manufacturer. It sold its first product, circular looms, in 1983 and added tape extrusion lines in 1984 under a technical collaboration with a German machinery maker.

    The company's promoters are Raj Kumar Lohia, Gaurav Lohia and Amit Kumar Lohia. Its registered office is in Kanpur, Uttar Pradesh.

    Business Overview

    The company makes machines used to produce woven fabric and sacks from PP and HDPE.

    Its product portfolio includes:

    • Tape extrusion lines

    • Circular looms

    • Tape winders and rewinders

    • Coating and lamination lines

    • Printing machines

    • Bag conversion machines

    • Multifilament yarn machines

    • Monofilament extrusion lines

    • Recycling machines and spare parts

    These machines help customers make:

    • Woven sacks for cement, fertiliser, food grain, chemicals and minerals

    • Flexible intermediate bulk containers (FIBCs) and container liners

    • Shopping bags and leno bags

    • Tarpaulins, geotextiles, pond liners and ground covers

    • Ropes, twines and carpet backing

    The company owns and operates six manufacturing facilities. Four are in India, with two in Kanpur, Uttar Pradesh and two in Bengaluru, Karnataka. One facility is in Burlington, North Carolina, USA and one is in Como, Italy. It also runs a live experience centre in Kanpur where FIBCs are made.

    As of 31 March 2026, its plants could make 240 tape extrusion lines, 13,800 circular looms and 1,08,000 tape winders a year. The company held 71 patents in India and 56 abroad, along with 54 registered trademarks. Its research centre in Kanpur is accredited by the Department of Scientific and Industrial Research.

    The company has also grown through acquisitions. In 2019, it acquired the business and assets of a textile machinery maker in the USA with expertise in winding technology. In 2024, it added a supplier of synthetic fibre and monofilament machinery in the United States to expand its yarns and tapes portfolio.

    Revenue Model

    Lohia Corp earns revenue from the sale of machines and spare parts. It describes its offering as 'concept to commissioning'. This covers the full production cycle of the raffia industry.

    The company sells through a global sales network. It sold products to around 100 countries in each of FY2024, FY2025 and FY2026. It has four sales offices in India and five offices abroad, in Brazil, Russia, Thailand, the UAE and the USA. Sales agents in Latin America, Africa and East Asia support this network.

    In FY2026, domestic sales contributed ₹992.74 crore, or 57.82% of revenue from operations. Overseas sales contributed ₹724.26 crore, or 42.18%. The company employed 2,010 permanent staff as of 31 March 2026.

    Industry Position

    The company operates in the woven raffia machinery segment of the technical textile machinery industry. According to the industry report cited in the RHP, it held a 15.4% share of the global woven raffia machinery market by value in 2024 and a 40.7% share of the Indian woven raffia machines market by value in FY2025.

    Its order book stood at ₹1,358.52 crore as of 31 March 2026, compared with ₹828.46 crore a year earlier.

    Industry Overview

    Demand for raffia machines is tied to demand for woven packaging itself. Raffia packaging is used because it is light, durable and recyclable.

    According to the industry report cited in the RHP:

    • The global woven raffia market was valued at about US$ 69.4 billion in 2024 and is projected to reach US$ 100.3 billion by 2030.

    • By volume, the market is projected to grow from about 26,200 kilotonnes in 2024 to 39,400 kilotonnes by 2030, a CAGR of about 7.0%.

    • The global woven raffia machinery market stood at about US$ 1,008 million in 2024 and is projected to reach about US$ 1,369 million by 2030.

    • The Indian woven raffia machinery market was sized at about US$ 150 million in FY2025.

    Key demand drivers cited in the RHP include:

    • Packaging needs of cement, fertiliser, agriculture and chemicals

    • Growth in FIBC and bulk packaging exports

    • Use of geotextiles in infrastructure projects

    • Adoption of recycling machinery for raw material circularity

    • Investment in backward integration by fabric producers

    Company Financials

    The company's numbers over the last three financial years show how its revenue, profits and balance sheet have moved. The table below presents key financial metrics as disclosed in the RHP. Figures have been converted from ₹ million to ₹ crore.

    Financials (₹ crore)

    FY2026

    FY2025

    Revenue from Operations

    1,737.87

    1,386.47

    EBITDA

    339.45

    228.60

    PAT

    193.45

    117.84

    Total Assets

    1,304.66 

    967.60

    Strengths of Lohia Corp Limited

    1. Established Market Position

    According to the industry report cited in the RHP, the company held a 15.4% share of the global woven raffia machinery market by value in 2024 and a 40.7% share by value of the Indian market in FY2025. A large installed base of machines can bring repeat demand for spares and services.

    2. Wide Product Range

    The company makes machines covering each stage of woven fabric production, from tape extrusion to weaving, coating, printing and conversion. This lets it serve customers across the full production cycle rather than a single step.

    3. Global Sales Reach

    The company sold to around 100 countries in each of the last three fiscals. Overseas sales made up 42.18% of revenue in FY2026, which spreads revenue across regions.

    4. In-House Technology and Manufacturing

    The company holds 71 patents in India and 56 abroad. It runs an accredited research centre and a training centre in Kanpur. It also operates six plants across India, the USA and Italy.

    Risks Associated with the Business

    Dependence on a Single Product Market

    The company earned 88.16% of its FY2026 revenue from woven raffia machines. A slowdown in end-use industries such as agro-textiles, packaging, or geotextiles may hurt demand.

    No Proceeds to the Company

    The IPO is entirely an Offer for Sale. The company will not receive any funds from the offer, and the proceeds will go to the selling shareholders.

    Limited Standalone History

    The company was set up in June 2023 and received the business through a demerger effective May 2024. FY2024 figures relate to the demerged business. They are not directly comparable with later years.

    Foreign Currency Exposure

    Overseas sales formed 42.18% of FY2026 revenue. Imported raw material formed 16.06% of material costs. Moves in exchange rates can affect results.

    Raw Material and Supply Risks

    The business needs a steady supply of parts and raw materials. Price changes or supply gaps can affect margins.

    Competitive Industry

    The global raffia machinery market has more than 30 active players, based mainly in Europe, India, China and Taiwan. Competition may affect pricing and market share.

    Related Party Transactions

    Related party transactions came to 12.02% of revenue in FY2026. The company has also given a corporate guarantee of ₹41.30 crore for a subsidiary.

    Working Capital Requirements

    The business had net working capital days of 84 in FY2026. Any squeeze in funding working capital could affect operations.

    Key Things Investors May Consider

    Before evaluating the IPO, investors may consider the following factors:

    • The offer is entirely an Offer for Sale, with no fresh funds coming to the company

    • Revenue concentration in woven raffia machines

    • Growth in revenue, EBITDA and PAT over the last three fiscals

    • Order book position of ₹1,358.52 crore as of 31 March 2026

    • Share of overseas revenue and related currency exposure

    • Industry outlook for woven raffia and technical textile machinery

    • The company's short standalone history following the demerger

    • Risks linked to competition, raw materials and working capital

    Published Date : 21 Jul 2026

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    Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.


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    Content Partner - Dalal Street Investment Journal Wealth Advisory Private Limited



    This article is for educational purposes only and should not be considered investment advice. Market investments are subject to risks. DSIJ Wealth Advisory Private Limited is a SEBI-registered Research Analyst (Reg. No: INH000006396) and Investment Adviser (Reg. No: INA000001142). Please consult your financial adviser before investing. 

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