Lohia Corp raffia-machinery IPO opens July 23 as pure offer for sale
Lohia Corp, a Kanpur maker of woven-raffia machinery, runs a pure offer for sale from July 23 to 27, per the RHP-stage record; its draft offer document was filed with SEBI in August 2025.
The Development
Lohia Corp Limited, a Kanpur-based manufacturer of machinery for the technical-textiles industry, is taking a pure offer-for-sale issue to the primary market, with the subscription window set to open on 23 July 2026 and to close on 27 July 2026, per the red-herring-stage record surfaced by The Economic Times. The company's draft red herring prospectus (DRHP) was filed with the Securities and Exchange Board of India (SEBI) on 12 August 2025 and is listed on SEBI's public-issues filings.
The offer is structured entirely as an offer for sale. The DRHP proposed up to 42,259,970 equity shares of face value Re 1 each by promoter and promoter-group selling shareholders, a figure the sellers have since pared to about 2.59 crore shares at the red-herring stage, per the record. Because there is no fresh issue, the company will not receive any proceeds; the objects of the offer, the DRHP states, are to "carry out the Offer for Sale" and to "achieve the benefits of listing" on the exchanges.
SEBI's clearance to proceed is not an endorsement of the issue: the DRHP records that the equity shares "have neither been recommended, nor approved" by the regulator. Allotment is scheduled for 28 July and listing for 30 July 2026, per the timetable on the record.
The Company
Per the DRHP, Lohia Corp describes itself as "among the leading global manufacturers of machinery and equipment for technical textiles, by revenue in 2024", with a focus on solutions for producing polypropylene and high-density-polyethylene woven fabric and sacks, known as "Raffia". The company discloses a 15.4% share of the global woven-raffia machinery market by value in 2024, citing a Frost & Sullivan report. Its product range, the offer document states, spans tape extrusion lines, winders, circular looms, coating and lamination lines, printing machines, conversion machines, multifilament-yarn machines and recycling machines.
The present entity, formerly Kanpur Packaging Machines Limited, was incorporated on 5 June 2023 and houses the technical-textile-machinery business demerged from Lohia Trade Services Limited, the DRHP records. The promoters are Raj Kumar Lohia, Gaurav Lohia and Amit Kumar Lohia.
On financials, the company discloses restated consolidated revenue from operations of Rs 1,376.87 crore (Rs 13,768.72 million) for the fiscal year ended 31 March 2025, total income of Rs 1,386.47 crore, and profit for the year of Rs 117.84 crore (Rs 1,178.41 million), per the DRHP. EBITDA stood at Rs 228.60 crore at a 16.49% margin, with a material margin of 44.34%. Because the company was incorporated only in June 2023, the offer document presents standalone figures for the earlier period.
The Offer Structure
The issue is a pure offer for sale, so the sellers are the promoters and members of the promoter group, not the company. In the DRHP, the largest tranche was up to 24,677,000 shares offered by Raj Kumar Lohia, with further tranches from Gaurav Lohia (up to 5,092,000 shares), Amit Kumar Lohia (up to 3,578,000), Ritu Lohia (up to 1,671,000) and Neela Lohia (up to 512,000), alongside other promoter-group shareholders. The equity shares carry a face value of Re 1 each.
The book-running lead managers to the offer are Equirus Capital Private Limited and Motilal Oswal Investment Advisors Limited, and the registrar is MUFG Intime India Private Limited (formerly Link Intime India Private Limited), per the DRHP. The price band and lot size are set in the price-band advertisement ahead of the opening and were not yet on the official record at the time of writing; the red herring prospectus filed with the exchanges carries the authoritative figures.
Readers working through the arithmetic of a possible allotment can use Oquilia's lumpsum calculator and CAGR calculator, and can find prior primary-market coverage on the Oquilia news desk.
Risk Factors
The DRHP's own risk-factors section sets out the material risks the company was required to disclose; they are reproduced here in plain English, not as an assessment. Among them, the company discloses that "significant increases or fluctuations in prices of, or shortages of, or delay or disruption in supply of" primary raw materials could hurt operations, and that it sources "a significant portion of our raw materials, parts and components, from overseas suppliers".
The document also lists concentration risk: the business is "heavily dependent on the performance of the woven raffia machines market", so a downturn in that single end-market would weigh on results. The company further discloses that it has "experienced negative cash flows from operating activities in the past", and that it is exposed to foreign-currency fluctuation risk given its imports of raw materials and its export sales.
Among other disclosures, the DRHP notes that certain companies that became subsidiaries under the demerger scheme "have incurred losses", and records a Directorate General of GST Intelligence demand that confirmed a penalty of Rs 1.71 crore (Rs 17.12 million), which the company is contesting. The full risk-factors section runs to dozens of items in the offer document.
What Happens Next
From here the sequence follows the standard book-built mechanics. Ahead of the 23 July opening, the company and the lead managers set the price band in a price-band advertisement, and an anchor-investor allocation, where taken up, is conducted one working day before the issue opens, per the DRHP. The three-day subscription window then runs from 23 to 27 July 2026, with bids placed category-wise across qualified institutional buyers, non-institutional bidders and retail individual bidders.
After the close, the basis of allotment is finalised, scheduled for 28 July, and shares are credited to successful applicants while blocked funds are released for the rest, ahead of listing on the exchanges on 30 July 2026. These dates are the timetable on the record and describe process only; subscription demand and the listing price will be known only as the exchanges publish them.
FAQ
Should I apply for this IPO?
Oquilia does not make recommendations. This report is informational and is not investment advice or a recommendation to subscribe. The RHP, including the complete risk-factors section, is available on SEBI's website and the exchanges - read it directly before making any decision.
What do SEBI's observations mean?
SEBI's observations on a draft offer document are a clearance to proceed with the issue, not an endorsement. The DRHP states the equity shares "have neither been recommended, nor approved" by SEBI, and the regulator does not guarantee the accuracy of the document's contents.
When does the issue open and close?
Per the record, the subscription window runs from 23 July to 27 July 2026, with the basis of allotment scheduled for 28 July and listing for 30 July 2026. Anchor-investor bidding, where undertaken, occurs one working day before the opening.
What is the price band and lot size?
The price band and lot size are set in the price-band advertisement shortly before the opening and were not yet on the official record when this report was prepared. The red herring prospectus filed with the exchanges carries the authoritative band, lot size and final offer size.
Who is selling shares in the offer?
The issue is a pure offer for sale by promoters and promoter-group members. Per the DRHP, the sellers include Raj Kumar Lohia, Gaurav Lohia, Amit Kumar Lohia, Ritu Lohia and Neela Lohia. The company itself receives no proceeds from the offer.
This report is based on the draft red herring prospectus filed with SEBI by Lohia Corp Limited, and the issue timetable was surfaced via coverage in The Economic Times.