Lohia Corp Limited

Founded in 1981 by Raj Kumar Lohia as a JV with Austria’s Starlinger, Lohia Corp makes machinery for producing PP/HDPE woven fabric and sacks (Raffia). Key products are circular looms (33% of FY26 revenue), tape extrusion lines (20%), winders (9%) and spares (11%). It holds 40.7% share of India’s woven Raffia machinery market (FY25) and 15.4% globally (CY2024), serving 2,000+ customers in ~100 countries from six plants. The listed entity was demerged from the erstwhile Lohia Corp in May 2024.

DRHP filed: August 12, 2025

IPO open & close: July 23, 2026 - July 27, 2026 (Anchor book: July 22, 2026)

Listing date: July 30, 2026 (tentative), on BSE and NSE

BRLM: Equirus Capital Private Limited; Motilal Oswal Investment Advisors Limited

Auditor: Walker Chandiok & Co LLP and Anil Pariek & Garg (Joint Statutory Auditors)

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Delta’s View:

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Lohia is one of two dominant global players in woven Raffia machinery alongside Starlinger, with deep backward integration and good cash generation (CFO / EBITDA post tax over ~110% last 3 years). However, its growth is cyclical (growth depends on its customers’ capex cycle) and industry is growing at a moderate pace of just ~5% CAGR. At 23.2x P/E and ~14.5x EV/EBITDA the ask is reasonable compared to other industrial machinery peer companies but the valuation multiple rests on peak-cycle margins. While the company leads in its segment, a better growth visibility would have comforted us to invest in this company at this valuation.

One can expect flat to moderate listing gains as per current GMP ~3% (27 July 2026), provided the GMP sustains.

•    Lohia is one of the two dominant global manufacturers of woven Raffia machinery alongside Austria’s Starlinger, with a 15.4% market share globally (CY2024) and 40.7% of the Indian market (FY25). It makes the equipment used to produce PP/HDPE woven sacks, FIBCs and geotextiles. Founded by Raj Kumar Lohia as a JV with Starlinger (which exited in 2013), it is now run by second generation with global reach: 2,000+ customers across ~100 countries, six plants (four India, one USA, one Italy), and top-10 customer concentration of only 12.6%.

•    Cash generation has been good for the company with the CFO to Post-tax EBITDA of ~110% from FY24-FY26. Operating cash flow increased from 111 cr (FY24) to 325 cr (FY26), with the Free cash flow increasing from 71 cr (FY24) to 293 cr (FY26). Net debt/EBITDA has fallen from 2.51x (FY24) to 0.77x (FY25) to 0.36x (FY26).

•    It has good backward integration: in-house sheet metal, fabrication, CNC machining, electronics (its own controllers, motors, inverters), moulding and assembly, and 71 Indian and 56 overseas patents and an installed base of 100,000+ looms. Although, its EBITDA margins increased from 9% (FY24) to 16% (FY25) and 19% (FY26), the demand remains cyclical similar to other machinery companies. Considering other industrial-machinery companies as peers, EBITDA margins (3 yr average) of Lohia corp were at ~14.5%, compared to Mamata machinery ~17%, Rajoo engineers ~17%, Jyoti CNC ~25%, LMW ~6%, Windsor machines ~6%.

•    Growth depends on capex cycle and is therefore cyclical, which is also visible among its peers. LMW’s operating margin fell from 10% (FY19) to 1% (FY20), with revenue down from 4,719 cr (FY23) to 3,012 cr (FY25). Mamata’s operating margin collapsed from 21% (FY25) to 10% (FY26). Lohia’s own margin was 9% in FY24 versus 19.5% in FY26, and capacity has been unchanged (240 tape lines, 13,800 looms, 108,000 winders) across FY24-FY26 while revenue grew 47%. So, the entire margin expansion is operating leverage on a fixed base, which reverses on the way down.

•    Global woven Raffia machinery is forecast to grow at just 5.2% CAGR to 2030, and more tellingly contracted from US$1,380 mn (2021) to US$960 mn (2023) before recovering to US$1,008 mn. Lohia’ s domestic share of its revenue fell from 65.5% (FY23) to 52.8% (FY24) to 40.7% (FY25) as it redirected capacity to exports (mix moved 49.5% → 58.2% → 42.2%), before domestic revenue rebounded +72% in FY26 to ₹993 cr.

•    The IPO ask valuation at 23.2x FY26 P/E and 14.5x EV/EBITDA against the EV/EBITDA multiple of peers (median multiple of last 1 yr) is on a reasonable valuation: Rajoo Engineers 20.2x, Jyoti CNC 35.6x, Mamata 16x, LMW 57x and Windsor machines 76x. The multiple looks reasonable on reported earnings but is being set on peak-cycle margins.

•    Several items to note: Gopal Gupta resigned as CFO in April 2025 (“internal structural changes”), replaced by Anupam Agarwal; Ujjal De and independent director Gaurav Swarup both resigned in August 2025; Paritosh Kumar Mukherjee moved from Whole-time Director to Non-Executive Director in May 2026. Related-party transactions were 33.4% of revenue in FY25, though ~56% of that was the gross-up of a promoter-group loan (Sarjna Capfin, ₹127.7 cr drawn and ₹128.4 cr repaid in-year).

Business

•    Lohia manufactures the machinery used to produce woven plastic (PP/HDPE) fabric and sacks - “Raffia”, supplying everything from extrusion and weaving machines to printing, lamination, conversion and recycling equipment on a “concept-to-commissioning” basis (design, install, train, service).

•    By product (FY26): circular looms 33%, tape extrusion lines 20%, other machines 17%, spare parts 11%, tape winders 9%. Woven Raffia machinery is ~88% of revenue. The geographic split was 58% domestic / 42% export in FY26.

•    Customers are Raffia converters — 2,000+ across ~100 countries, with the top 10 at only ~13% of revenue. Their machines produce bags for cement, fertiliser, food grain and chemicals, FIBCs, plus non-packaging uses like tarpaulins and geotextiles. The order book stood at ₹1,359 cr at FY26-end, up ~64% YoY.

•    The company runs its own metal-cutting, fabrication, machining, surface-treatment, electronics, moulding and assembly shops, and makes its own controllers, motors and inverters. It sits in the capital-goods layer of the chain (polymer makers upstream, Raffia converters downstream), so demand tracks customers’ capex cycles.

•    Six manufacturing plants — four in India (two in Kanpur, two in Bengaluru), one in the USA (Burlington, NC) and one in Italy (Como). Indian annual capacity as of March 2026 is 240 extrusion lines, 13,800 circular looms and 108,000 winders, unchanged since FY24.

•    It sells directly through 4 India and 5 overseas sales offices, 17 exclusive agents, and a service network across 12 Indian cities and 13 countries. It has six subsidiaries in India, the USA, Brazil, UAE and Italy. M&A has been a consistent growth lever — Leesona (2019), Sundarlam (2021), and J.J. Jenkins plus OMGM (2024).

Promoters and Leadership

•    The promoters are Raj Kumar Lohia (Chairman & MD), his son Gaurav Lohia (Whole-time Director & COO) and his brother Amit Kumar Lohia, together holding 72.94% pre-issue. The founder set up the business in 1981 as Lohia Starlinger, a JV with Austria’s Starlinger, which exited in 2013.

•    Raj Kumar Lohia is an Economics graduate from Kanpur University with 43+ years in manufacturing, and formerly served as an independent director at J.K. Cement (2011–2019). Gaurav Lohia (b. 1982) holds a BBA from Bond University, Australia and completed ISB Hyderabad’s family-business programme; he has been with the group since 2004.

Shareholding Pattern

•    The entire share capital of 10,56,50,000 shares was issued in June 2024 to shareholders of the demerged company under the NCLT-approved Scheme, in a 1:1 swap.

•    Promoters and promoter group hold ~95.6% pre-issue, falling to ~75.2% post-offer; Public shareholders will hold ~24.5%.

•    Largest holders pre-issue: Raj Kumar Lohia 55.72%, Gaurav Lohia 10.45%, LTS Holdings 7.12%, Amit Kumar Lohia 6.77%, Rishab Kumar Lohia Memorial Trust 3.98% and Ritu Lohia 3.16%. There are no institutional or financial investors on the cap table.

Issue Details

Fresh issue size → Nil;

Offer For Sale size – Amount → ₹1,101 cr;

•    Raj Kumar Lohia (Promoter) will sell 1,67,28,500 shares, reducing his stake from 55.7% to 39.9%

•    Gaurav Lohia (Promoter) will sell 22,17,500 shares, reducing his stake from 10.5% to 8.4%

•    Amit Kumar Lohia (Promoter) will sell 9,20,187 shares, reducing his stake from 6.8% to 5.9%

•    Ritu Lohia (Promoter Group) will sell 16,71,250 shares, reducing her stake from 3.2% to 1.6%

•    Alok Kumar Lohia (21,71,460 shares), Anurag Lohia (13,72,610 shares) and Anuja Lohia (10,84,900 shares) will exit fully

Financials