Lohia Corp IPO subscription remains muted on day two despite grey market premium
The ₹1,101 crore offer for sale is experiencing tepid institutional and retail demand, even as analysts point to the company’s dominant market share in raffia machinery to justify its valuation.
Lohia Corp Ltd’s initial public offering faced sluggish demand on its second day of trading, with the book-building issue subscribed just 0.42 times by mid-morning. The ₹1,101 crore offer for sale opened on 23 July 2026 and will remain open until 27 July, seeking to list on the BSE and NSE.
Breaking down the muted response, the retail portion was subscribed 0.77 times, while non-institutional investors filled only 0.17 times of their allocation. Qualified institutional buyers also showed restraint, committing to just 0.43 times of their reserved portion by 10:15 AM.
Despite the tepid bidding, the grey market is pricing in a modest debut. Shares are currently trading at a premium of ₹40 over the upper price band of ₹425 per equity share, signaling an estimated 9 percent listing gain.
Valuation and Market Position
Market professionals argue that the valuation is supported by the company’s fundamental strengths. Mahesh M. Ojha, Vice President of Research and Business Development at KC Securities, noted that the upper price band values the IPO at 22.1 times FY26E earnings. He described this multiple as fairly valued given the firm's global market leadership and robust export franchise, recommending a long-term investment horizon.
Swastika Investmart echoed this sentiment, highlighting the company's exceptional profitability metrics. The firm reported a return on equity of 36.8 percent and a return on capital employed of 40.9 percent as of March 2026.
The brokerage pointed out that Lohia Corp commands over 80 percent of the domestic market and 17.5 percent of the global raffia machinery segment. While this commands a premium price-to-earnings ratio of 23 times compared to Rajoo Engineers' 18 times, analysts believe the market dominance justifies the multiple for long-term investors expecting moderate listing gains.
The issue is being managed by lead managers Equirus Capital and Motilal Oswal Investment Advisors, with MUFG Intime India Private Ltd acting as the registrar. Final share allotment is scheduled for 28 July, ahead of the anticipated 30 July listing date.
