Archive · 25 Jul 2026
Lohia Corp IPO: Should Investors Subscribe?
Lohia Corp is a company that makes machines for the technical textiles industry, specifically for woven Raffia, which is used in packaging and other applications.
The company is launching an IPO worth ₹1,100 crore, with promoters and public shareholders selling a portion of their stake.
Lohia Corp is a market leader in India and the second-largest player globally in the woven Raffia machines market.
The company has shown strong financial performance, with significant revenue and net profit growth, and positive free cash flows.
However, the market for woven Raffia machines is relatively small and highly cyclical, with limited growth prospects and potential future bans on plastic-based packaging.
Investors are divided on whether to subscribe to the IPO, with some arguing that the company's valuation is cheap compared to its peers, while others point to the risks associated with the cyclical nature of the market and the company's expensive P/B ratio.
Lohia Corp is launching an IPO worth ₹1,100 crore, with promoters and public shareholders offloading a total of 24.5% stake.
The company is a market leader in India and the second-largest player globally in the woven Raffia machines market.
Lohia Corp has shown strong financial performance, with significant revenue and net profit growth, and positive free cash flows.
The woven Raffia machines market is relatively small and highly cyclical, with limited growth prospects and potential future bans on plastic-based packaging.
Investors are divided on whether to subscribe to the IPO, with some arguing that the company's valuation is cheap compared to its peers, while others point to the risks associated with the cyclical nature of the market and the company's expensive P/B ratio.
- Who
- Lohia Corp, a supplier of machines in the technical textiles market.
- What
- The company is launching an IPO worth ₹1,100 crore, with promoters and public shareholders offloading a total of 24.5% stake.
- When
- The IPO is open for subscription until July 27, 2026.
- Where
- The company operates in India and overseas markets, with a significant presence in the woven Raffia machines market.
- Why
- The IPO aims to provide an exit opportunity for promoters and public shareholders, while also offering investors a chance to participate in the company's growth.
Investors Should Subscribe
Investors Should Avoid
Valuation
Investors Should Subscribe
The company's valuation at 22x trailing earnings appears cheap compared to peers like LMW (129x P/E), Jyoti CNC (54x), and Rajoo Engineers (20x).
Investors Should Avoid
Despite the lower P/E ratio, the company's P/B ratio of 8.6x is expensive compared to its peers, indicating potential overvaluation.
Market Potential
Investors Should Subscribe
Lohia Corp is a market leader in India and the second-largest player globally in the woven Raffia machines market, which is projected to grow to $1.37 billion by 2030.
Investors Should Avoid
The woven Raffia machines market is relatively small and highly cyclical, with limited growth prospects and potential future bans on plastic-based packaging.
Financial Performance
Investors Should Subscribe
The company has shown strong revenue and net profit growth, with significant improvements in EBITDA and PAT margins, and positive free cash flows.
Investors Should Avoid
The company's earnings are highly dependent on operating leverage and market demand, with growth figures amplified by a low base in FY24.
- IPO Size
- ₹1,100 crore
- Promoters' Stake
- 95.6% (pre-IPO), 75.2% (post-IPO)
- Market Cap (Ceiling)
- ₹4,500 crore
- P/E Ratio
- 22x
- P/B Ratio
- 8.6x
- Revenue Growth (FY24-26)
- 21% CAGR
- Net Profit Growth (FY24-26)
- 159% CAGR
- Order Book (FY26)
- ₹1,359 crore