Lohia Corp IPO (23-27 July) Analysis

IPO Analysis  |  NSE and BSE Main Board  |  100% Offer for Sale (No Fresh Issue)  |  Regulation 6(2)

Based on Red Herring Prospectus dated July 17, 2026  |  Woven Raffia and Technical Textile Machinery  |  Kanpur, Uttar Pradesh

STATUS: RED HERRING PROSPECTUS FILED (Live Offer)  |  Pure Offer for Sale: up to 25,931,407 Shares (No Fresh Issue)  |  Bid/Offer Opens: July 23, 2026  |  Bid/Offer Closes: July 27, 2026  |  Global Leader in Woven Raffia Machinery (15.4% World Share)  |  Post-Demerger Entity (Effective May 1, 2024)

Lohia Corp Limited (incorporated June 5, 2023 as Kanpur Packaging Machines Limited) became the operating home of the Lohia group's technical textile machinery business through a court-approved demerger: Lohia Trade Services Limited (the erstwhile Lohia Corp Limited, now renamed LTS Holdings Private Limited) demerged its core machinery business, including investments in five subsidiaries, into this Company under a Scheme of Arrangement approved by the NCLT, Allahabad Bench, on April 16, 2024, effective May 1, 2024.

Its registered office is at D-3/A, Panki Industrial Estate, Udyog Nagar, Kanpur, Uttar Pradesh 208022, with a corporate office at Lohia Industrial Complex, Chaubepur, Kanpur. Its website is www.lohiagroup.com. Its CIN is U28261UP2023PLC183476. The Promoters are Raj Kumar Lohia (Chairman and Managing Director, 43-plus years of experience), Gaurav Lohia (Whole-time Director and Chief Operating Officer), and Amit Kumar Lohia. Chief Financial Officer is Anupam Agarwal; Company Secretary and Compliance Officer is Shikha Srivastava.

The Company (through its predecessor business, whose legacy traces to a 1981 joint venture between the Lohia group and Austria's Maschinenfabrik Starlinger & Co.) is among the leading global manufacturers of machinery for technical textiles, with a particular focus on woven Raffia (polypropylene and high-density polyethylene woven fabric and sacks). Per an F&S (Frost & Sullivan) industry report commissioned for this Offer, the Company held a 15.4% share of the global woven Raffia machinery market by value in 2024 and a dominant 40.7% share of the domestic market by value in Fiscal 2025.

Its product range spans tape extrusion lines, circular looms, tape winders, coating and lamination lines, printing and conversion machines, multifilament yarn machines, and recycling machines, delivered on a 'concept to commissioning' basis covering consultancy, training, and full engineering support.

The Company operates six manufacturing facilities: four in India (two in Kanpur, Uttar Pradesh, including a live experience centre, and two in Bengaluru, Karnataka) and one each in Burlington, USA and Como, Italy. As of March 31, 2026, installed capacity spanned 240 tape extrusion lines, 13,800 circular looms and 108,000 tape winders per annum, and the Company held 71 Indian patents, 56 foreign patents, 8 design registrations and 54 trademarks.

It has grown both organically and through acquisitions, including Leesona Corp (USA, winding technology, 2019), Sundarlam Industries (lamination and coating, 2021), and J.J. Jenkins Inc (synthetic fibre and monofilament machinery, 2024), alongside a joint venture with OMGM SAS of Italy. The Company sold products to approximately 100 countries in each of Fiscals 2024 to 2026, supported by 5 international offices (Brazil, Russia, Thailand, UAE, USA) and 17 exclusive overseas sales agents, and employed 2,010 permanent staff as of March 31, 2026. The Company's financial year ends March 31.

Key Basics

This Offer is fundamentally an exit vehicle for the Lohia family, not a capital-raising event for the Company: it is a pure Offer for Sale of up to 25,931,407 Equity Shares by seven Selling Shareholders, all members of the Lohia family, with no Fresh Issue component whatsoever. The RHP is dated July 17, 2026 and the Offer is live, with bidding opening July 23, 2026.

The Issue is made under Regulation 6(2) of SEBI ICDR Regulations, the non-standard route, since the Company does not meet the profitability-based Regulation 6(1) test; as a consequence, at least 75% of the Net Offer must go to Qualified Institutional Buyers, a materially more institutionally-weighted allocation than the standard 50%/15%/35% structure.

Document Type	Red Herring Prospectus (RHP) dated July 17, 2026. This Offer is live: Anchor Investor Bidding July 22, 2026; Bid/Offer Opens July 23, 2026; Bid/Offer Closes July 27, 2026.
Issue Structure	A pure Offer for Sale of up to 25,931,407 Equity Shares of face value Rs.1 each by 7 Selling Shareholders. There is no Fresh Issue at all; the Company will not receive any Offer proceeds.
Face Value	Rs.1 per Equity Share.
Selling Shareholders	Promoters: Raj Kumar Lohia (up to 16,728,500 shares, WACA Rs.0.91), Gaurav Lohia (up to 2,217,500 shares, WACA Rs.0.05), Amit Kumar Lohia (up to 920,187 shares, WACA Rs.0.05). Promoter Group: Ritu Lohia (up to 1,671,250 shares, WACA Rs.0.04). Other Selling Shareholders: Alok Kumar Lohia (up to 2,171,460 shares, WACA Rs.0.02), Anurag Lohia (up to 1,137,610 shares, WACA Rs.0.07), Anuja Lohia (up to 1,084,900 shares, WACA Rs.0.05). All are members of the Lohia family.
Eligibility Route	Regulation 6(2) of SEBI ICDR Regulations, NOT the standard profitability-based Regulation 6(1) route, as the Company does not fulfil the Regulation 6(1) requirements.
Pre-Offer Promoter Holding	Promoters and Promoter Group together hold 95.61% of pre-Offer paid-up capital (105,650,000 shares outstanding); only 23 total shareholders as of the RHP date.
Employee Reservation	Up to 200,000 Equity Shares (approximately 0.19% of post-Offer capital) reserved for Eligible Employees, potentially with an Employee Discount to the Offer Price.
Listing Exchanges	NSE (Designated Stock Exchange) and BSE. In-principle approvals received (letters dated October 27 and 28, 2025).
BRLMs	Equirus Capital Limited; Motilal Oswal Investment Advisors Limited.
Registrar	MUFG Intime India Private Limited (formerly Link Intime India Private Limited). Contact: Shanti Gopalkrishnan.
Bid/Offer Dates	Anchor Investor Bidding: July 22, 2026. Bid/Offer Opens: July 23, 2026. Bid/Offer Closes: July 27, 2026.
Listed Peers	Five listed peers: Rajoo Engineers Limited, LMW Limited, Mamata Machinery Limited, Windsor Machines Limited, and Jyoti CNC Automation Limited. Industry P/E: highest 134.25x, lowest 18.27x, composite average 67.30x.

Two points are worth understanding about the Company's unusual origin. First, Lohia Corp Limited as a listed entity is very young (incorporated June 2023) but its underlying business is not: the operating machinery business it now holds was demerged from a much older Lohia group company via an NCLT-sanctioned Scheme of Arrangement effective May 1, 2024, and traces its roots to a 1981 joint venture.

Second, all seven Selling Shareholders are Lohia family members holding shares at extremely low Weighted Average Costs of Acquisition (Rs.0.02 to Rs.0.91 per share), reflecting decades of family ownership; this Offer represents the family monetising a portion of that long-held stake, with 95.61% of the Company remaining in Promoter and Promoter Group hands even after full completion of the maximum Offer size.

This is a pure Offer for Sale; the Company will not receive any of the Offer proceeds. All proceeds, net of the Selling Shareholders' proportionate share of Offer-related expenses, will go to the seven Selling Shareholders. The RHP states the objects of the Offer are simply to effect this sale of shares and to achieve the benefits of listing, including enhanced visibility, brand recognition, and a public market for the Company's shares.

Because there is no Fresh Issue and therefore no Objects of the Offer in the conventional sense, there is no capital expenditure, debt repayment, or working capital funding plan to evaluate here, unlike every other company analysed in this report series. Prospective investors evaluating this Offer are, in effect, being asked to buy into the existing, already-operating business at whatever Offer Price is set, rather than participating in a growth-capital raise; the Company's own balance sheet and cash flow (see Section 4) will be entirely unaffected by the Offer's completion, aside from the costs of listing itself, which the Company bears only to a limited extent (listing fees and routine statutory audit fees), with the bulk of Offer-related expenses shared by the Selling Shareholders.

Financial Performance

Note: All figures in Rs. Million unless stated; Rs. Crore equivalent provided for Revenue. Financial periods: Fiscal 2026 and Fiscal 2025 (Restated Consolidated, reflecting the Company post-demerger); Fiscal 2024 figures shown are the Special Purpose Combined and Carve-Out Financial Statements of the Transferred (Demerged) Business, the pre-demerger predecessor operations, since the Company's own Restated Standalone Fiscal 2024 figures reflect a pre-operational shell (nil revenue, a Rs.0.09 million loss) prior to the NCLT Scheme becoming effective on May 1, 2024.

This carve-out basis is the most meaningful like-for-like comparison available for Fiscal 2024, though it is not identical in scope to the Restated Consolidated figures for Fiscal 2025 and Fiscal 2026, and should be read as directionally, not precisely, comparable.

Revenue, EBITDA, and Profitability

Metric	FY2026 (Rs. Mn)	FY2025 (Rs. Mn)	FY2024 Carve-Out (Rs. Mn)
Revenue from Operations	17,169.95	13,768.72	11,658.08
Revenue (Rs. Crore)	Rs.1,717.0 Cr	Rs.1,376.9 Cr	Rs.1,165.8 Cr
Woven Raffia Machines (% of Revenue)	88.16%	87.28%	85.68%
Material Margin %	43.73%	44.34%	42.55%
EBITDA	3,394.51	2,286.02	1,059.62
EBITDA Margin %	19.53%	16.49%	9.03%
Profit After Tax (PAT)	1,934.52	1,178.41	297.58
PAT Margin %	11.13%	8.50%	2.54%
Basic and Diluted EPS (Rs.)	18.31	13.70	N/A (pre-demerger)
Return on Equity %	36.80%	31.71%	11.92%
Return on Capital Employed %	40.92%	30.45%	10.45%
Net Debt to Equity (times)	0.23x	0.47x	1.06x
Net Debt to EBITDA (times)	0.36x	0.77x	2.51x
Net Working Capital Days	84	82	90
Order Book	13,585.17	8,284.57	7,692.40
Revenue Split (Domestic / Overseas)	57.82% / 42.18%	41.82% / 58.18%	50.50% / 49.50%

Revenue grew from Rs.11,658.08 million (FY2024, carve-out) to Rs.13,768.72 million (FY2025) to Rs.17,169.95 million (FY2026), alongside a genuinely striking improvement in profitability: EBITDA Margin more than doubled, from 9.03% to 19.53%, and PAT Margin grew more than four-fold, from 2.54% to 11.13%, over the same window.

This is a substantive operational improvement rather than a pure accounting artefact of the demerger, reflected consistently across multiple independent metrics: Return on Capital Employed nearly quadrupled (10.45% to 40.92%), and leverage fell sharply (Net Debt to EBITDA from 2.51x to 0.36x). The order book also grew strongly, from Rs.7,692.40 million (FY2024, carve-out) to Rs.13,585.17 million (FY2026), providing good forward revenue visibility.

Revenue remains heavily concentrated in woven Raffia machines (88.16% of FY2026 revenue), the Company's core product line, a market the Company itself identifies as cyclical and dependent on end-use sectors including agriculture, construction and packaging.

One figure warrants a specific caveat: Return on Net Worth of 72.95% (FY2026, per the Basis for Offer Price disclosure) is dramatically higher than any listed peer (see Section 5), but this partly reflects a still-relatively-small post-demerger equity base (Rs.5,257.27 million as of March 2026) relative to the now-larger absolute profit the business generates, rather than a return level likely to persist indefinitely as the equity base grows.

Domestic and overseas revenue have both been substantial and roughly balanced across the three periods shown (ranging from 41.82% to 58.18% for either category), reflecting genuine geographic diversification (sales to approximately 100 countries) rather than dependence on either market.

Balance Sheet, Cash Flow, and Contingent Liabilities

Item	Mar 2026 (Rs. Mn)	Mar 2025 (Rs. Mn)	Mar 2024 Carve-Out (Rs. Mn)
Total Assets	13,046.55	9,676.00	8,734.88
Total Equity	5,257.27	3,715.85	2,496.01
Net Debt	1,235.30	1,750.35	2,657.55
Inventories	3,964.79	2,962.12	2,951.41
Trade Receivables	1,384.08	1,199.73	870.90
Cash and Cash Equivalents	292.54	371.28	146.17
Contingent Liabilities	487.35	N/A	N/A
Net Cash from Operating Activities	3,251.61	1,412.84	1,115.14
Net Cash from Investing Activities	(2,391.28)	(312.93)	(151.53)
Net Cash from Financing Activities	(954.60)	(877.68)	(1,114.59)

Total Equity grew from Rs.2,496.01 million (FY2024, carve-out, shown as Owner's Net Investment prior to the demerger) to Rs.5,257.27 million (FY2026), while Net Debt fell from Rs.2,657.55 million to Rs.1,235.30 million over the same period, a genuine deleveraging alongside profit growth.

Operating cash flow nearly tripled, from Rs.1,115.14 million (FY2024, carve-out) to Rs.3,251.61 million (FY2026), comfortably funding both a step-up in investing activity (Rs.2,391.28 million used in FY2026, reflecting increased investment purchases alongside routine capital expenditure) and continued debt repayment and dividend distribution (Rs.184.89 million paid in FY2026).

Contingent liabilities of Rs.487.35 million as of March 2026 include a Rs.413.00 million corporate guarantee issued on behalf of the Company's US subsidiary, Leesona Corp, to HSBC Bank, a matter worth noting given that Leesona Corp has itself been loss-making and its losses have been widening (Rs.102.12 million loss in FY2025, widening to Rs.243.41 million in FY2026).

How Does It Compare to Peers?

The RHP discloses five listed industry peers in machinery and engineering: Rajoo Engineers Limited, LMW Limited, Mamata Machinery Limited, Windsor Machines Limited, and Jyoti CNC Automation Limited. Figures below are Fiscal 2026; P/E for peers is based on closing market price on BSE as of July 15, 2026 divided by Diluted EPS. Windsor Machines' P/E is not meaningful given its near-zero EPS.

Company	Revenue FY26 (Rs. Mn)	EPS (Rs.)	P/E (x)	RoNW (%)	NAV/Share (Rs.)
Lohia Corp Limited (Our Company)	17,169.95	18.31	[TBD]	72.95%	49.37
Rajoo Engineers Limited	3,442.53	2.74	18.27	14.16%	19.33
LMW Limited	32,074.20	122.37	134.25	4.56%	2,683.25
Mamata Machinery Limited	2,330.02	6.12	62.07	8.13%	75.21
Jyoti CNC Automation Limited	20,931.30	14.78	54.60	16.79%	88.00
Windsor Machines Limited	5,704.96	0.06	N.M.	0.13%	55.73

Lohia Corp's FY2026 RoNW of 72.95% is far above every listed peer, which range from 0.13% (Windsor Machines) to 16.79% (Jyoti CNC Automation), though as discussed in Section 4, this substantially reflects the Company's still-developing post-demerger equity base rather than a sustainable steady-state figure investors should extrapolate forward. By revenue scale, Lohia Corp (Rs.17,169.95 million) sits between the smaller peers (Mamata Machinery and Rajoo Engineers, both under Rs.3,500 million) and the larger ones (LMW at Rs.32,074.20 million and Jyoti CNC Automation at Rs.20,931.30 million).

The industry P/E range is wide (18.27x to 134.25x, composite average 67.30x), with LMW commanding by far the highest multiple despite one of the lowest RoNW figures in the set, suggesting the market may be pricing LMW on scale and brand rather than current capital efficiency. Since the Offer Price and hence Lohia Corp's own P/E remain undetermined ([TBD]), the ultimate valuation attractiveness relative to this peer set cannot yet be assessed.

Key Risks

l  This Offer is a pure Offer for Sale; the Company will receive no proceeds whatsoever. The entire Offer exists to allow seven Lohia family Selling Shareholders to monetise part of their holding, with no accompanying capital expenditure, debt reduction, or growth-funding plan for the Company itself, a structurally different proposition from a Fresh Issue-based IPO.

l  The Company qualifies under the non-standard Regulation 6(2) route because it does not meet the profitability-based Regulation 6(1) eligibility test, resulting in at least 75% of the Net Offer being reserved for Qualified Institutional Buyers, a materially smaller allocation for Non-Institutional and Retail Individual Bidders than the standard structure.

l  Revenue is heavily concentrated in a single product category, woven Raffia machines (88.16% of Fiscal 2026 revenue), a market the Company itself describes as cyclical and dependent on the agriculture, construction and packaging sectors, and subject to government policy risk, such as mandatory jute-packaging requirements that could reduce demand for plastic-based Raffia products.

l  The Company's operating history as a standalone listed entity is extremely short: it was only vested with its operating business via an NCLT-sanctioned Scheme of Arrangement effective May 1, 2024, and its Fiscal 2024 Restated Standalone financial statements reflect a pre-operational shell company. The extraordinarily high Fiscal 2026 Return on Net Worth (72.95%) partly reflects this still-developing post-demerger capital base rather than a return level likely to be sustained as the equity base grows.

l  US subsidiary Leesona Corp has posted widening losses, from Rs.102.12 million (FY2025) to Rs.243.41 million (FY2026), and the Company has issued a Rs.413.00 million corporate guarantee to HSBC Bank on Leesona Corp's behalf, a contingent liability tied directly to this loss-making subsidiary.

l  The Company depends on overseas suppliers for a significant portion of raw materials, parts and components, and is exposed to foreign currency fluctuations on both the import and export sides of its business.

l  Several other subsidiaries acquired through the demerger have posted losses in one or more of the last three fiscals, including Sundarlam Industries Private Limited (FY2026), Lohia Global Solutions FZE (FY2024 and FY2025), and LDB Importacao E Exportacao Ltda (FY2025 and FY2026), though most are smaller in scale than the Leesona Corp losses.

l  The Company has experienced negative operating cash flows in the past (per its own risk factor disclosure), though the periods shown in this report (FY2024 to FY2026, carve-out and restated) all show positive and growing operating cash flow.

l  Pending tax and regulatory contingent liabilities total Rs.487.35 million as of March 2026, including a confirmed GST penalty of Rs.17.12 million under appeal and a further Rs.10.29 million state tax assessment under appeal.

l  The Company has entered into related party transactions in the past, including sales to Lohia Global Solutions FZE, Leesona Corp, Sundarlam Industries Private Limited, and other affiliated entities, and may continue to do so.

l  The woven Raffia machinery market faces structural headwinds including environmental regulation and evolving restrictions on single-use plastics, which could affect long-term demand for the Company's core product category.

Positives to Note

l  Global and domestic market leadership in a specialised niche: among the leading global manufacturers of woven Raffia machinery by revenue (2024, 15.4% global share by value, per the F&S Report) and the clear domestic market leader (40.7% share by value, Fiscal 2025).

l  Genuine, substantial margin and profitability improvement, not merely an accounting artefact of the demerger: EBITDA Margin more than doubled from 9.03% (FY2024, carve-out) to 19.53% (FY2026), and PAT Margin grew more than four-fold, from 2.54% to 11.13%, alongside real deleveraging (Net Debt to EBITDA from 2.51x to 0.36x).

l  Strong and growing order book, up from Rs.7,692.40 million (FY2024, carve-out) to Rs.13,585.17 million (FY2026), providing good forward revenue visibility.

l  Genuinely diversified, well-balanced geography: sales to approximately 100 countries across the last three fiscals, with domestic and overseas revenue both substantial (ranging between 41.82% and 58.18% for either category across the periods shown) and manufacturing facilities spanning India, the USA, and Italy.

l  A deep, multi-decade technical and operating history: the underlying business traces to a 1981 joint venture with Austria's Maschinenfabrik Starlinger & Co., and the Company holds 71 Indian patents, 56 foreign patents, 8 design registrations and 54 trademarks, supported by dedicated, DSIR-accredited in-house R&D infrastructure.

l  Experienced senior leadership: Chairman and Managing Director Raj Kumar Lohia has over 43 years of experience, and other senior executives (CFO, Chief Sales Officer) each bring 15 or more years of relevant sector experience.

l  Real capital efficiency gains reflected across multiple independent metrics: Return on Capital Employed nearly quadrupled from 10.45% (FY2024, carve-out) to 40.92% (FY2026), alongside strong and growing operating cash flow (Rs.1,115.14 million to Rs.3,251.61 million over the same window).