Lohia Corp Ltd produces machines for polypropylene (PP), high-density polyethylene (HDPE), and woven fabric and sacks (Raffia), with global market shares of 17.5% for Raffia machines and 28.7% for PP/HDPE fabrics. In terms of value to volume, it held an 80% market share in India in FY22 in delivering end-to-end production solutions for the raffia sector.
Lohia Corp is a worldwide provider that provides end-to-end solutions for the full woven plastic ecosystem. It serves over 90 countries and has worldwide offices in Brazil, Russia, Thailand, the United Arab Emirates, and the United States. It has four manufacturing plants, three in India and one in the United States. During fiscal year 2022, the company sold 84,218 circular weaving looms, over 1,989 tape extrusion lines, and 547,972+ winders, totaling 6.84 million MT of extrusion capacity.
Lohia Corp. Ltd. has filed an initial public offering (IPO) with SEBI, consisting of an offer for sale of shares from promoter stockholders. Raj Kr. Lohia, Neela Lohia, Gourav Lohia, Amit Kr. Lohia, and Ritu Lohia are the selling promoters. The IPO date and price band for Lohia Corp. Ltd. shares have yet to be announced by the issuers.
Lohia Corp Ltd. IPO Objective
- The offer is a 100% offer for sale of equities. Hence, the corporation will not receive any proceeds from the IPO.
Should you invest in Lohia Corp Ltd.?
Here are the top reasons to consider before investing in the IPO:
- In the last three years, it ranked among the top 50 Indian brands based on PCT filings.
- The company is growing both organically and inorganically by acquiring existing capacities to manufacture machinery and equipment for technical textiles.
- It is well positioned to benefit from global industry tailwinds, with the Raffia market predicted to increase at a 6.3% CAGR from $59 billion in 2021 to $80 billion in 2026, and the technical textile market expected to grow at an 8.25% CAGR between 2020 and 2025.
Lohia Corp Ltd IPO Financials
| Particulars | Year ending on March 31, 2022 (₹ million) | Year ending on March 31, 2021 (₹ million) | Year ending on March 31, 2020 (₹ million) |
|---|---|---|---|
| Revenue from Operations | 22,374.80 | 13,337.86 | 10,845.65 |
| Profit After Tax (PAT) | 1,593.77 | 1,207.84 | 389.31 |
| PAT Margin | 7.12% | 9.06% | 3.59% |
| EBITDA | 2,349.01 | 1,947.42 | 871.24 |
| EBITDA Margin | 10.50% | 14.60% | 8.03% |
| ROE | 30.34% | 22.33% | 7.40% |
Noteworthy Highlights of Lohia Corp. Ltd.
- Revenue from operations increased at a CAGR of 43.63%, rising from Rs. 10,845.65 million in 2020 to Rs. 22,374.80 million in 2022.
- As of March 2022, the firm had sold the most machines in the raffia sector.
Know Us before investing
Strengths
- It operates through a comprehensive, backward-integrated manufacturing unit and is supported by a training facility.
- The company is managed by an experienced management team and promoters.
- It has 26 patents granted under its name and 58 patents at various stages of application.
Risks
- Productions can be impacted by price fluctuations, shortages, delays, or disruptions in the supply of primary raw materials.
- The company’s revenue depends on the performance of the plastic machinery industry.
- Any disruption in the manufacturing units will impact the company’s future profitability.
Lohia Corp Ltd IPO FAQs :
Q1. What is Lohia Corp. Ltd.’s IPO?
Ans. Lohia Corp. Ltd. IPO is an offer for sale of 31,695,000 equity shares. We will update the Lohia Corp. Ltd. IPO price when it is announced.
Q2. When will Lohia Corp Ltd.’s IPO allotment be available?
Ans. Will be updated soon.
Q3. What will be Lohia Corp. Ltd.’s IPO lot size?
Ans. Will be updated soon.
Q4. When will Lohia Corp. Ltd.’s IPO open for subscription?
Ans. Will be updated soon.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6. When will Lohia Corp. Ltd. list on exchanges?
Ans. Will be updated soon.
Q7. What would be the listing gains on the Lohia Corp. Ltd. IPO?
Ans. Listing gains cannot be ascertained before the listing of the IPO shares on the stock exchange.
Q8. I have finished the application process for the Lohia Corp. Ltd. IPO, but the funds are not yet debited. What is the reason?
Ans. The bank will only block the amount in your account. The money will not be debited before the IPO shares are allotted.
Q9. How to approve the UPI mandate request for Lohia Corp. Ltd. IPO?
Ans. You must complete the bidding process by logging in to your UPI handle to approve the payment mandate.
Q10. Can I submit more than one application for the public issue of Lohia Corp. Ltd. using one PAN?
Ans. You can submit only one application using one PAN card.
Q11. What is the minimum order quantity for the Lohia Corp. Ltd. IPO?
Ans. Will be updated soon.
