Lohia Corp IPO GMP: How much risk and reward in ₹1,102 crore IPO? Know the latest GMP, price band, lot size, company’s business, strengths, weaknesses and important things.
Lohia Corp IPO Review: Plastic packaging company Lohia Corp Ltd has entered the primary market with its IPO of ₹ 1,102.08 crore. This company, which has more than 40% market share in India and a strong hold in more than 100 countries, seems to be an attractive opportunity for investors. But will it be right to bet in this IPO with 100% OFS (Offer for Sale)? Let us know about Lohia Corp’s business model, gray market premium (GMP), big risks and potential rewards…
Complete details of Lohia Corp IPO
IPO opening date: 23 July 2026
IPO closing date: 27 July 2026
Price Band: ₹404 to ₹425 per share
Lot Size: 35 shares
Minimum investment: ₹14,875
Issue Size: ₹1,102.08 crore
Fresh Issue: Noyes
Offer for Sale (OFS): 100%
What does Lohia Corp do?
Whenever you see a cement bag, fertilizer bag, plastic grain bag or industrial packaging, the machines needed to make them are made by Lohia Corp. The company does not make the sacks itself, but rather develops a complete machine line so that other companies can make strong plastic woven sacks.
Lohia Corp’s business is spread in 100 countries
Lohia Corp is not limited to India only. About 42% of earnings come from abroad. The company has customers in about 100 countries. Till now, machines have been supplied to more than 2,000 customers. That means the company’s business is not dependent only on the Indian market.
Lohia Corp IPO GMP: What is the hint of gray market?
Gray Market Premium (GMP) serves as an unofficial sentiment indicator in the primary market. There is a good buzz about the shares of Lohia Corp in the unofficial market. However, expecting listing gains just by looking at GMP is not the right strategy. According to market experts, due to the company’s strong balance sheet, reduction in debt and reasonable valuation, investors can be rewarded with positive listing gains on the day of listing.
What is GMP and how accurate is it?
GMP i.e. Gray Market Premium tells us what kind of demand is seen for IPO in the unofficial market. However, it is important to remember that GMP is only an indication, not a guarantee. GMP can change every hour. Investment decisions should not be taken just by looking at GMP. The business, financials, valuation and risks of the company must also be looked at.
3 big rewards of Lohia Corp IPO
- It has more than 40% share in India’s woven raffia machinery segment. It is extremely difficult for competitive companies to achieve this scale.
- The company has reduced its debt significantly in the last 2 years. Its Net Debt-to-EBITDA ratio is only 0.36x, which means the company can repay its entire debt in 6 months from its earnings.
- Its P/E ratio at the upper price band of ₹425 is 23.21x, which is quite affordable and balanced compared to its listed peers like LMW or Jyoti CNC.
Lohia Corp IPO: 3 big risks
- More than 90% of the company’s revenue comes from woven raffia machinery. If demand for plastic packaging decreases, business will be directly affected.
- Stringent rules are being made around the world on single-use plastics and petroleum-based polymers. If governments promote jute or other alternatives, long-term demand may slow.
- Since 42% of the earnings are from exports, fluctuations in foreign exchange (dollar) and geo-political tensions can have an impact on the company’s margins.
Disclaimer: This article has been written for general information purposes only. Do not consider this as investment advice. Investing in the stock market and IPO is subject to risks. Before making any investment, definitely consult your financial advisor.