Mumbai: Lohia Corp’s ₹1,101.28-crore IPO has entered the second day of bidding, and the market is getting nervous about the company. The company’s GMP has fallen sharply from ₹56 earlier this week to ₹13, meaning, in short, it is expected to gain only tardiness in the company’s performance in fiscal year (FY26).
As of Day 2, the IPO had been subscribed 0.44 times, and bids for 63.19 lakh shares were received compared to 1.43 crore shares at offer.
The retail investor segment had a relatively better participation; the reserved part was subscribed 0.86 times while the overall demand was still moderate.
The latest GMP Signals Limited Listing Premium
According to market trackers, the recent Grey Market Premium (GMP) is at ₹13.
Based on the upper price band of ₹425 per share, a listing price would be around ₹438, implying a listing gain of around 3.06% in the stock.
However, the Grey Market Premium should be considered the unofficial indicator, and it does not guarantee real listing performance.
Lohia Corp IPO Details
The IPO consisted of an entirely Offer for Sale (OFS) by existing shareholders.
- Issue Size: ₹1,101.28 crore
- Type: Offer for Sale (OFS).
- Shares Offered: 2.59 crore equity shares.
- Price Band: ₹404–₹425 per share
Since this is a pure OFS issue, Lohia Corp will not receive any proceeds from the IPO. Instead, the money raised will go to the selling shareholders.
Minimum Investment
Retail Investors
Minimum application: 35 shares
Minimum investment: ₹14,875
Small Non-Institutional Investors (sNII)
Minimum application: 14 lots
Investment: ₹2,08,250
Big Non-Institutional Investors (bNII)
Minimum application: 68 lots
Investment: ₹10,11,500
Lead Manager: Equirus Capital Ltd.
Registrar: MUFG Intime India Ltd.
Allotment and Listing Timeline
Investors will be able to expect the following schedule:
- IPO Closing: As per the issue schedule.
- Allotment Finalisation: July 28.
- Refunds Started: July 29.
- Shares Credited to Demat Accounts: July 29.
- Expected Listing on BSE & NSE: July 30.
Strong Financial Performance
Despite relatively little IPO demand, Lohia Corp reported excellent financial growth in FY26.
Profit after tax (PAT): ₹193.45 crore. Up 64.16% from ₹117.84 crore in FY25. Revenue from Operations: ₹1,717 crore. Up 24.70% from ₹1,376.87 crore in FY25.
The company's profit grew much faster than revenue, reflecting improved operating efficiency and stronger margins.
About Lohia Corp
Lohia Corp is one of the world’s top manufacturers of machinery used in the woven plastic packaging and technical textiles industry.
Its products are machinery for manufacturing polypropylene (PP) and high-density polyethylene (HDPE) woven fabrics, raffia bags, and industrial packaging solutions. The company exports its machinery to customers in more than 100 countries, making it one of the main global players in the sector.
Investor Takeaway
Lohia Corp has had robust earnings growth and a significant global presence, but its Grey Market Premium and relatively low subscription level show a cautious environment for a company before listing. Investors should consider the company’s business fundamentals, valuation, industry outlook, and risk factors before investing in it.
IPO investments are subject to market risks. The Red Herring Prospectus (RHP) should be read carefully, and a professional financial advisor should be consulted before investing.
Comments
Please to leave a comment on this article.