Lohia Corp Ltd. IPO

Lohia Corp

• Lohia Corp is coming out with a 100% book building; initial public offering (IPO) of 2,59,31,407 shares of face value Rs 1 each in a price band Rs 404 - 425 per equity share. 
• Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
• The issue will open for subscription on July 23, 2026 and will close on July 27, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 404 times of its face value on the lower side and 425 times on the higher side.
• Book running lead managers to the issue are Equirus Capital and Motilal Oswal Investment Advisors.
• Compliance officer for the issue is Shikha Srivastava.  

Profile of the company 

The company is among the leading global manufacturers of machinery and equipment for technical textiles, with a strong focus on solutions for producing polypropylene (PP) and high-density polyethylene (HDPE) woven fabric and sacks (Raffia). The company manufactures a comprehensive and diverse suite of machinery such as tape extrusion lines, circular loom, coating and lamination lines, printing machines, conversion machines, multifilament yarn machines, twister winders, monofilament extrusion lines and recycling machines, amongst others, as well as spare parts. It provides end-to-end solutions for the entire ecosystem of woven fabric, offering services from ‘concept to commissioning’, throughout the complete production lifecycle required for the Raffia industry. It manufactures winders and rewinders for high performance fibres and it has also ventured into extrusion lines to produce technical monofilaments with diversified applications such as textiles, agriculture and sports.

The machines it manufactures enable its customers to deliver solutions across a diverse spectrum of end-user industries, catering to varied applications. Woven fabric machines are used in a wide range of packaging applications across various industries, including the packaging of cement, fertilizer, chemicals, polymer, food grain and minerals, as well as in the production of shopping bags, leno bags, flexible intermediate bulk containers (“FIBC”) and container liners; they are also utilized in a variety of non-packaging applications, such as wrapping fabric, roof underlayment, lumber wrap, pond liner, tarpaulin, geotextile, geogrid, ground cover, carpet backing, ropes and twines.

Proceed is being used for: 

• Carrying out the offer for sale of equity shares of face value of Rs 1 each by the selling shareholders of the company
• Achieving the benefits of listing the equity shares on the stock exchanges

Industry overview

The Indian technical textile market is one of the fastest-growing segments in the country’s textile ecosystem, driven by rising demand for functional, performance-based materials across industrial and infrastructure sectors. The Indian technical textile ecosystem includes raw material suppliers (fibers, resins, coatings), machinery and fabric manufacturers, product converters, and end-user industries like infrastructure, healthcare, automotive, among others. It is supported by R&D institutes, testing labs, and government bodies through policies like PLI and textile parks. Unlike traditional textiles, technical textiles in India are being adopted for their utility, such as strength, thermal resistance, filtration efficiency, and biocompatibility.

In India, the technical textiles market is expected to grow at a CAGR of 10.5% between Fiscal 2025 and Fiscal 2030, from $28.5 billion to $47.0 billion. Of this, the Indian woven Raffia market stood at $8.4 billion in Fiscal 2025, with a share of 29.5% of the total technical textile market in India. Currently, technical textiles contribute a relatively modest portion, i.e., around 11.0% of the total textile market in India. Exports have grown from around $1.9 billion in Fiscal 2015 to $2.6 billion by Fiscal 2024, registering a CAGR of 6.0% to 6.5%, driven by rising demand for products like FIBC bags, PPE kits, and agro-textiles. Meanwhile, imports have since moderated to around $2.05 billion in Fiscal 2024 as domestic manufacturing improved and import substitution efforts gained traction.

India’s technical textile industry is entering a high-growth phase, driven by strong policy support through the PLI scheme, PMMITRA textile parks, and mandatory BIS standards. These initiatives, enabling large-scale manufacturing, enhance product quality, and encourage investment. With the global China strategy creating export opportunities and rising private sector participation, India is well-positioned to become a global hub for high-performance technical textiles. The Government of India (GoI) has introduced several initiatives and incentives, making the industry favourable for growth. The GoI has also focused on indigenous manufacturing through means such as production-linked incentive schemes for woven fabrics, which have two scheme slabs for providing incentives to woven fabric manufacturers, and the National Capital Goods Policy, 2016, which aims to double the local production of capital goods by 2025.

Pros and strengths 

Diverse product portfolio, offering end-to-end solutions for the woven fabric ecosystem: The company has a diverse product portfolio, providing end-to-end solutions for the entire ecosystem of woven fabric, offering services from ‘concept to commissioning’, throughout the complete production lifecycle required for the Raffia industry. It is a comprehensive solutions provider for the Raffia industry and offer a diverse suite of products, including tape extrusion lines, circular loom, coating and lamination lines, printing machine, conversion machine, multifilament yarn machines, and recycling machines, among others. It manufactures winders and rewinders for high performance fibres and it has also ventured into extrusion lines to produce technical monofilaments with diversified applications such as textiles, agriculture, medicine and sports.

Strong relationships with a diverse, global customer base through an extensive global sales and distribution network: Through in-house innovations and leveraging its global knowledge, it has been offering differentiated and customer centric products that cater to industry requirements. It has supplied products to customers in around 100 countries in Fiscals 2026, 2025 and 2024. Its sales and services network at different locations allows it to service and grow in these markets efficiently. In addition to its domestic sales, since its first sale outside India in 1989, it has increased its geographical footprint by focusing on certain emerging markets such as Asia Pacific, MENA, CIS and Sub-Saharan Africa.

Advanced manufacturing infrastructure with comprehensive backward integration: It owns and operates four machine manufacturing facilities along with one live experience centre in India (where it also manufactures FIBCs), with a total area of around 159,884.08 square meters, in addition to a manufacturing facility in USA and a manufacturing facility in Como, Italy. It also owns and operates the TTRC, a training centre in Kanpur, Uttar Pradesh, which stands out within the global woven Raffia machinery ecosystem with a constructed area of over 7,300.00 square meters. In addition, it has set up the MTTC with a constructed area of over 3,000.00 square metres, a research and development centre spread over 6,000.00 square meters of constructed area, and a digital innovation centre spread over 578.32 square meters of constructed area. Its backward integration capabilities reduce its dependence on external supply of parts and components for machine manufacturing and support services and enables maintenance of quality control required to service global and national technical textile players. It designs and manufactures inverters, customized machine controllers and motors along with other products for its circular weaving machine and winders.

Technology-driven operations with strong focus on innovation-led research and development: The company is a technology-driven company with a strong focus on quality, product designing and new product development that has allowed it to develop products suited to changing market requirements. The Demerged Company, whose Demerged Business has been vested in it pursuant to the Scheme, commenced machine manufacturing under technical collaborations with a renowned European manufacturer of such machines. Over the years, it has developed in-house capabilities to deliver evolving technologies and have refined its assembly, configuration and test processes to maintain its quality level and delivery timing. it continues to invest in R&D as well as enter into collaborations and tie-ups to advance its technical know-how. As a result, it continues to introduce advanced machinery and equipment for extrusion and winding technologies, weaving and products such as machinery and equipment for lamination and coating, conversion and PP multifilament extrusion lines in its overall product portfolio.

Risks and concerns

Heavy dependence on woven raffia machines market: The company is heavily dependent on the performance of the woven raffia machines market. It derived 88.16%, 87.28% (based on the Restated Financial Information) and 85.68% of its revenue from operations in Fiscals 2026, 2025 and 2024, respectively, from woven raffia machines. The woven raffia machines market depends on the growth of end-use industries such as agro-textiles, building-textiles, geo-textiles and packing-textiles. Any slowdown in these end-use industries or any other adverse changes in the conditions affecting the woven raffia machines market can adversely impact its business, results of operations, financial condition and cash flows.

Supply chain disruptions and raw material price volatility may adversely impact operations: The company’s operations are dependent upon the efficient supply chain management of raw materials, parts and components made to drawings and standard bought-out parts that are required for manufacturing of machines for the technical textile industry. Cost of material consumed and stock-in-trade includes metals, standard bought-outs, parts or components that are ‘made to drawings’, electricals, cables and wires, other consumables, packing material, among others. Some of the key components that it sources externally are extrusion die, pump and screw, gear-box, bearings, electric motors and drives. It designs and manufactures inverters, customized machine controllers and motors along with other products for its circular weaving machine and winders, and purchase other raw materials, parts and components externally. Significant increases or fluctuations in prices of, or shortages of, or delay or disruption in supply of primary raw materials could affect its estimated costs, expenditures and timelines which may have an adverse effect on its business, results of operations, financial condition and cash flows.

Maximum revenue is derived from international operations: The company derives a portion of its revenues from operations and conduct business outside India. It derived 42.18% and 58.18% of its revenue from operations from overseas markets in Fiscals 2026 and 2025, respectively. Its inability to handle risks associated with its export sales and its international operations, including the imposition of tariffs or other anti-outsourcing legislation, could negatively affect its sales to customers in foreign countries, as well as its operations and assets in such countries.

Disruptions at its manufacturing facilities or warehouses could adversely affect its operations: The company owns and operates six machine manufacturing facilities, with four in India and one each in USA and Italy, along with one live experience centre in India. Of its Indian manufacturing facilities, two are located in Kanpur, Uttar Pradesh along with the live experience centre (where it manufactures flexible intermediate bulk containers (FIBC)), and two are located in Bengaluru, Karnataka. Its manufacturing facility in USA is located in Burlington, North Carolina and its manufacturing facility in Italy is located in Como, Italy. It also has warehouses in India, UAE and USA, where it stores inventory of spares for after-sales services. Any significant social, political or economic disruption or natural calamities or civil disruptions in these states or countries or changes in the policies of the states or local governments could require it to incur significant capital expenditure, change its business strategy and may have an effect on its business, results of operations, financial condition and cash flows.

Outlook  

Lohia Corp is engaged in the manufacturing of machinery and equipment for the technical textiles industry, with a strong focus on solutions for producing PP and HDPE woven fabrics and sacks (Raffia). It manufactures winders and rewinders for high performance fibres and it has also ventured into extrusion lines to produce technical monofilaments with diversified applications such as textiles, agriculture and sports. On the concern side, Indian and global woven raffia machines market faces challenges such as environmental regulations, high capital costs for advanced machinery and competition. it cannot assure that the demand for its products will continue to grow in the face of these challenges, or that it will be able to successfully navigate such challenges. Further, it faces significant competitive pressures in its industry. Its inability to compete effectively would be detrimental to its business and prospects for future growth.

The issue has been offering 2,59,31,407 shares in a price band of Rs 404 - 425 per equity share. The aggregate size of the offer is around Rs 1,047.63 crore to Rs 1,102.08 crore based on lower and upper price band respectively. On performance front, total income increased by 25.34% from Rs 13,864.73 million in Fiscal 2025 to Rs 17,378.70 million in Fiscal 2026. Its profit for the year was Rs 1,934.52 million in Fiscal 2026, as compared to Rs 1,178.41 million in Fiscal 2025.

Meanwhile, it intends to grow its recycling machinery and equipment offerings to cater to this rapidly growing market by developing new machines to enter the market for post-consumer recycling for non-food grades. Its focus on recycling machinery is aligned with its commitment towards sustainability goals, as recycling machines minimize the environmental impact of plastics by turning plastic waste into reusable products. Initiatives such as the United Nations Sustainable Development Goal 12, which promotes ‘responsible consumption and production’, aim to ensure sustainable patterns of resource use. Further, it intends to augment its scale of operations through inorganic expansion strategies, including selectively evaluating targets for strategic mergers, acquisitions and investments, joint ventures and technical alliances, in order to consolidate its position as an integrated, one-stop-shop manufacturer of machinery and equipment for production of technical textiles. The aim behind such inorganic expansion is to strengthen its product platform and customer portfolio.