Lohia Corp sets Rs 404-425 band for Rs 1,101 crore offer for sale
Lohia Corp set a Rs 404-425 price band for its Rs 1,101 crore offer for sale and raised Rs 492 crore from anchor investors; the issue opens on July 23 and closes on July 27.
The Development
Lohia Corp Limited has set a price band of Rs 404 to Rs 425 per equity share for its initial public offering, which opens for subscription on July 23, 2026 and closes on July 27, 2026, with a listing expected on the NSE and BSE around July 30. The offer is structured entirely as an offer for sale and aggregates up to Rs 1,101.28 crore at the upper end of the band. The Kanpur-based maker of woven-sack machinery reported on July 22 that it had raised Rs 492.1 crore from anchor investors, with the anchor allotment completed one working day before the issue opens, as reported by Mint.
The company is at the red herring prospectus stage of the pipeline. Its draft red herring prospectus (DRHP), dated August 12, 2025, was filed with the Securities and Exchange Board of India (SEBI) and is on the SEBI public-issues record. The price band and dates mark the point at which the offer terms become legally operative and the public subscription window can open.
The Company
Lohia Corp Limited, formerly known as Kanpur Packaging Machines Limited, is a manufacturer of machinery and equipment for technical textiles. Per the DRHP, the company is "among the leading global manufacturers" of such machinery, with a focus on solutions for producing polypropylene and high-density polyethylene woven fabric and sacks, known in the trade as raffia. The offer document states the company held a 15.4% share of the global woven raffia machinery market by value in 2024, citing a Frost & Sullivan report. Its product suite spans tape extrusion lines, winders, circular looms, coating and lamination lines, printing and conversion machines, multifilament yarn machines, monofilament extrusion lines and recycling machines.
The company discloses that the global market for woven raffia machines was estimated at US$1,008 million in 2024 and is projected to reach US$1,369 million by 2030, while the Indian market was US$150 million in Fiscal 2025. The promoters are Raj Kumar Lohia, Gaurav Lohia and Amit Kumar Lohia.
On financials, the DRHP reports restated consolidated figures for the year ended March 31, 2025: revenue from operations of Rs 13,768.72 million (about Rs 1,376.9 crore) and profit for the year of Rs 1,178.41 million (about Rs 117.8 crore). Total equity stood at Rs 3,715.85 million, with earnings per share of Rs 13.70, return on equity of 31.71% and net asset value per share of Rs 34.83. The company was incorporated on June 5, 2023 and the raffia-machinery business was transferred into it under a scheme, so restated standalone figures for the earlier period are near nil.
The Offer Structure
The issue is a pure offer for sale, per the DRHP, meaning the company itself will not receive any of the proceeds; the selling shareholders are entitled to the offer proceeds after deducting offer-related expenses and taxes. The draft proposed the sale of up to 42,259,970 equity shares of face value Rs 1 each by eight shareholders, including promoter selling shareholders Raj Kumar Lohia (up to 24,677,000 shares), Gaurav Lohia (up to 5,092,000) and Amit Kumar Lohia (up to 3,578,000), alongside promoter-group and other selling shareholders Neela Lohia, Ritu Lohia, Alok Kumar Lohia, Anurag Lohia and Anuja Lohia. The price band and aggregate size were finalised at the red herring prospectus stage.
The book-running lead managers 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 offer document. Because the company has been in existence for less than three years, the offer is being made under Regulation 6(2) of the SEBI ICDR Regulations, which reserves not less than 75% of the net offer for qualified institutional buyers. Readers working through the arithmetic of an allotment can use Oquilia's lumpsum calculator or CAGR calculator, and prior primary-market coverage sits on the Oquilia news desk.
Risk Factors
The DRHP sets out a detailed risk-factors section, and the following are among the material risks the company itself discloses. The offer document lists exposure to "significant increases or fluctuations in prices" of, or shortages and supply disruptions in, its primary raw materials as a leading risk to margins and delivery schedules.
Among the risk factors the company discloses, it sources a significant portion of its raw materials, parts and components from overseas suppliers, leaving it exposed to import disruptions and to foreign-currency fluctuation on both imported inputs and export sales. The RHP also flags heavy dependence on the performance of the woven raffia machines market, so that a downturn in that single end-market would weigh directly on the business. The document further discloses that the company has experienced negative cash flows from operating activities in the past, and that certain companies which became its subsidiaries under the scheme had incurred losses in the preceding three years. These are the company's own required disclosures, not an assessment by this desk.
What Happens Next
With the anchor book completed and the price band and dates announced, the standard mechanics run from here. The public subscription window opens on July 23, 2026 and closes on July 27, 2026, during which applications are made through the ASBA and UPI process at the Rs 404 to Rs 425 band. Category-wise demand from qualified institutional, non-institutional and retail investors will be reported by the exchanges as bid data through the window.
After the issue closes, the basis of allotment is finalised with the registrar, MUFG Intime India, followed by refunds or the unblocking of application amounts and the crediting of shares to demat accounts. The stock is then expected to list on the NSE and BSE around July 30, 2026, where the debut price will be set against the issue price. These are process steps on the announced timetable, not a prediction of demand or price.
FAQ
What is the price band and offer size?
Per the price-band announcement, the band is Rs 404 to Rs 425 per equity share of face value Rs 1, and the offer aggregates up to Rs 1,101.28 crore at the upper end. The issue is entirely an offer for sale by existing shareholders, so the company receives no fresh capital from it.
When does the issue open and close?
The subscription window opens on July 23, 2026 and closes on July 27, 2026, per the offer schedule. The anchor allocation was completed on July 22, one working day before the opening, and the company raised Rs 492.1 crore from anchor investors as reported by Mint.
What does a SEBI filing mean here?
SEBI's public-issues record shows the draft red herring prospectus was filed and processed. SEBI's observations on an offer document are a clearance to proceed and are explicitly not an endorsement or a certification of the merits of the issue.
Where can I read the RHP?
The draft red herring prospectus is available on SEBI's website and on the exchanges, and the red herring prospectus with the final terms is filed with the exchanges. The complete risk-factors section, financials and offer details are set out there in full.
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.
This report is based on the draft red herring prospectus filed with SEBI and the offer document on the BSE. It was surfaced via coverage in Mint.