Lohia Corp Ltd IPO 

Last Updated on September 27, 2023 by BFSLTeam BFSLTeam

Lohia Corp ltd. is a leading manufacturer of machinery and equipment used to produce technical textiles. In September 2022, the manufacturer filed a DRHP with the market regulator, SEBI (Securities and Exchange Board of India) for its Initial Public Offering. SEBI provided approval for the public issue and an observation letter for the same in February 2023. The IPO is expected to launch sometime this year.

If you have been waiting to invest in the IPO of Lohia Corp Limited for a long time, you can do so once the IPO goes live. But, don’t forget to analyse the details about the strengths and risks of investment. Check out the key details about the Lohia Corp Ltd IPO in this blog. 

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About the Company 

Lohia Corp Limited, the flagship company of Lohia Group was incorporated way back in 1981 as Lohia Starlinger Limited. It was a joint venture between the Lohia Group and Starlinger & Co. GmbH of Austria. In March 2013, Starlinger ceased to be a shareholder and since then the company has been known as Lohia Corp Limited. 

Lohia Corp Limited is a reputable manufacturer of machinery and equipment used to produce technical textiles especially polypropylene, high-density polyethylene and woven fabric and sacks called Raffia. The company provides end-to-end solutions for the Raffia industry. Its products include circular looms, recycling machines, winders, tape extrusion lines, printing machines, etc.

The vision of this company is to be the best in the world in woven plastics machinery and allied businesses with the help of innovative solutions. Since its inception, it has invested consistently to upgrade its in-house manufacturing capabilities. With time, the company has added a highly advanced research and development facility. 

Moreover, Lohia Corp Limited has invested a lot to develop the systems and capabilities of its human resources to serve its customers across the world in an effective way. The strategic location of the company’s offices in important markets has helped the management understand the demands of customers. 

The company ensures that it follows the best business practices while serving its customers. Lohia Corp Limited remains focused on building strategies to give shape to its growth potential. 

Lohia Corp Limited IPO Details and Objectives 

Kanpur-based Lohia Corp Limited has filed a DRHP with SEBI for an IPO for the sale of shares from its promoters and shareholders. The names of promoter shareholders are Raj Kumar Lohia, Gourav Lohia, Neela Lohia, Ritu Lohia, and Amit Kumar Lohia. The other selling shareholder is Ajay Lohia.

Thus, the IPO is 100% an Offer for Sale by five promoters and one shareholder. The main objective is to carry out with ease an OFS of up to 31,695,000 equity shares and get the benefit of listing equity shares on some of the well-established stock exchanges of India. The company will not get any of the proceeds from this IPO. 

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Strengths of Lohia Corp Limited 

Before you invest in Lohia Corp Limited’s IPO, you need to check the strengths of the company. It will help you get a better idea about the potential of the company. Moreover, it might help you understand how much the company will be worth in the future.

• Lohia Corp Limited is not just a market leader in India. The company is one of the leading manufacturers of machinery and equipment for technical textiles in the international market. 
• Its manufacturing infrastructure is highly advanced and supported by a strong backward integration and internal training centre. 
• Technology-driven operations of Lohia Corp Limited ensure the company has an unwavering focus on quality. Its research and development is driven by innovation. As a result, it creates advanced machinery and equipment well capable of catering to various market requirements. 
• The operations of Lohia Corp Limited are entirely customer-centric. A high level of customer satisfaction is a factor that lends it an edge against its competitors. 
• The company boasts of an extensive network of global sales and distribution and a one-of-a-kind ecosystem of industry development training. 
• Lastly, Lohia Corp Limited wouldn’t have been able to reach where it is without the contribution of experienced and qualified management team members and employees committed to the company’s overall growth. 

Risks Involved 

The following are some of the risks faced by Lohia Corp:

• If the supply of raw materials faces a disruption, Lohia Corp Limited’s entire business may suffer as a result. 
• Its business depends a lot on how the plastic woven fabric machines market performs. If this market, or its associated markets, goes through recession, Lohia Corp Limited’s business will suffer. 
• If Lohia Corp’s business is unable to keep up with competitors, it will lose customers and spiral downward. 

Also Read: How To Apply For An IPO?

Conclusion 

SEBI has given the green light to Lohia Corp to float its IPO. The company is yet to announce a tentative timeline for its IPO. What you can do is keep track of the latest news about it here. Analyse its strengths and risks minutely as it will help you understand whether investing in Lohia Corp IPO will be suitable for you or not. You can rely on our website to get regular updates about Lohia Corp Limited’s IPO. You can also consider opening a Demat account with us. We make it easier to apply for any IPO of your choice.

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