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Anand Rathi Report
Here are 10 key things investors should know before bidding:
1.Important Dates
Lohia Corp Ltd. will launch its initial public offering today, July 23 and the offer closes for subscirption on July 27. The Lohia Corp IPO is tentatively scheduled to list on the BSE and NSE on Thursday, July 30, 2026
2. Price Band
A global manufacturer of machinery for technical textiles has fixed the price band in the range of Rs 404 to Rs 425 Apiece.
3. IPO Size
Lohia Corp's IPO is a mainboard issue consisting entirely of an Offer for Sale (OFS) of 25.91 million shares worth Rs 1,101 crore. The company will not receive any proceeds from the issue.
4. Book Running Lead Managers
Equirus Capital Ltd., Motilal Oswal Investment Advisors are the book running lead managers for the issue whereas MUFG Intime India Private Ltd. is the registrar to the offer.
5. Dominant Position in India
The company is the market leader in India with a 40.7% market share in the domestic woven raffia machinery market in FY25.
6. Strong Financial Growth
Revenue from operations increased to Rs 1,717 crore in FY26 from Rs 1,377 crore in FY25, while profit after tax rose to Rs 194 crore from Rs 118 crore during the same period.
7. Other listed entities
Rajoo Engineers Ltd., LMW Ltd., Mamata Machinery Ltd., Jyoti CNC Automation Ltd., Windsor Machines Ltd. are the other listed peers in the sector.
8. Key Strengths:
- Market leader in India and among the leading manufacturers globally of woven raffia machinery in a growing market.
- Diverse product portfolio, offering end-to-end solutions for the woven fabric ecosystem.
- Advanced manufacturing infrastructure with comprehensive backward integration, supported by an in-house training centre.
- Technology-driven operations with a strong focus on innovation-led research and development, leading to products that cater to dynamic market requirements.
9. Key Strategies:
- The company aims to expand its international footprint by increasing exports and strengthening its global market share through its established overseas presence and international sales network.
- Strengthen Capabilities in the Conversion and Processing Machinery Segment.
- Strengthen Position in the High-Performance Fibres and Monofilament Segment.
- Focus on recycling machinery and equipment to advance sustainability initiatives.
10. Key Risks
- High Dependence on the Woven Raffia Machinery Market:
The Company is heavily dependent on the performance of the woven Raffia machinery market. Revenue from woven Raffia machinery accounted for 88.16%, 87.28% (based on the Restated Financial Information), and 85.68% (based on the Special Purpose Combined and Carve-out Financial Statements) of revenue from operations in FY26, FY25, and FY24, respectively. Demand for woven Raffia machinery is closely linked to the growth of end-use industries such as agro-textiles, building textiles, geo-textiles, and packaging textiles. Any slowdown in these end-use industries or any other adverse developments affecting the woven Raffia machinery market could adversely impact the company's business, financial performance, cash flows, and overall financial condition.
- Raw Material Price Volatility and Supply Chain Risks:
Significant increases or fluctuations in the prices of, shortages of, or delays or disruptions in the supply of primary raw materials could affect the company's estimated costs, expenditures, and project timelines, which may adversely impact its business, results of operations, financial condition, and cash flows.
- Dependence on Imported Raw Materials and Components:
The Company sources a significant portion of its raw materials, parts, and components from overseas suppliers. Any restrictions on the import of raw materials or changes in tariffs, duties, or tax rates could adversely affect the company's business, results of operations, financial condition, and cash flows.
- Manufacturing Facility Disruption Risk:
The Company relies on the continued operations of its manufacturing facilities. Any slowdown, shutdown, or disruption at these facilities due to natural calamities or other unforeseen events causing damage could disrupt business operations and adversely affect the company's business, results of operations, financial condition, and cash flows. Industry Cyclicality and Regulatory Challenges: The Indian and global woven Raffia machinery market faces challenges such as stringent environmental regulations, high capital costs associated with advanced machinery, and increasing competition. The company's growth prospects may be impacted if demand for its products slows or if it is unable to effectively navigate these industry challenges.
Brokerage View
According to Anand Rathi, Lohia Corp is well-positioned to benefit from the long-term growth of the technical textiles and raffia machinery industries, supported by its strong market leadership, integrated manufacturing capabilities, global distribution network and ongoing investments in technology and R&D.
While the brokerage believes the issue appears fully priced at 23.2x FY26 earnings, it has nevertheless assigned a"Subscribe for Long Term" rating given the company's growth prospects and competitive advantages.
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