Lohia Corp Limited IPO Company Profile:
Lohia Corp Limited is one of the leading manufacturers globally of machinery and equipment used in the production of technical textile, in particular for manufacturing polypropylene (“PP”) and high-density polyethylene (“HDPE”) woven fabric and sacks (“Raffia”), with a global market share of 17.5% across all Raffia machinery and more than 28.7% for machines used in PP/ HDPE fabric making. Lohia Corp Limited is the market leader in India providing end-to-end manufacturing solutions for the Raffia industry with a market share of more than 80% in terms of value and volume, in the machine segment up to the plastic weaved fabric stage in Fiscal 2022. In addition to machines for the Raffia industry, the company is the leading manufacturer in India of spin-draw-wind machines (“LOFIL”) for PP multifilament yarn that is used in upholstery (furnishing fabrics, curtains, among others), filter fabrics, liners which are used in suitcases, backpacks, among others, fishing nets, sports nets, decorative laces and as sewing yarn in various applications in the Raffia industry.
As of March 31, 2022, the aggregate extrusion capacity of the manufacturing machinery and equipment sold by us was 6.84 million MT. As of March 31, 2022, the company had sold approximately 84,218 circular weaving looms, over 1,989 tape extrusion lines, and over 547,972 winders. Of the total extrusion capacity sold by the company, as of March 31, 2022, 4.70 million MT, or 68.54% was sold domestically, and 2.15 million MT, or 31.46% was exported globally. As of March 31, 2022, the company sold the highest number of machines in the Raffia industry. In Fiscal 2020, 2021 and 2022, 52.39%, 76.93%, and 79.58%, respectively, of the extrusion cap capacity sold domestically while 47.61%, 23.07%, and 20.42%, respectively, were exported. The key products include equipment such as tape extrusion lines, tape winders, circular looms, lamination and coating lines, conversion lines and recycling machines used in the production of HDPE/PP woven fabric and sacks, which are in turn used for packaging and non-packaging applications.
Lohia Corp Limited IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹1 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | 5,125,000 shares
(aggregating up to [●]) |
| Offer for Sale | 5,125,000 shares
(aggregating up to [●]) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| Company Promoters | Raj Kumar Lohia, Neela Lohia, Gaurav Lohia, Amit Kumar Lohia, and Ritu Lohia |
Lohia Corp Limited IPO Financial Analysis:
| Particulars | FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | CAGR |
| Revenue from Operations | 2237.48 | 1333.79 | 1084.57 | 27.3% |
| Other Income | 41.72 | 32.20 | 15.90 | |
| Cost Of Goods Sold | 1515.75 | 792.23 | 615.36 | |
| Employee Cost | 192.53 | 150.15 | 155.04 | |
| Other expenses | 294.30 | 196.66 | 227.04 | |
| EBITDA | 276.62 | 226.94 | 103.02 | 39.0% |
| EBITDA margin% | 12.36% | 17.01% | 9.50% | |
| Depreciation | 60.77 | 43.04 | 34.03 | |
| Interest | 10.05 | 15.34 | 24.04 | |
| Exceptional Item | 5.21 | 0.00 | 0.00 | |
| PBT | 200.59 | 168.56 | 44.95 | 64.6% |
| Total tax | 41.21 | 47.77 | 6.02 | |
| PAT | 159.38 | 120.78 | 38.93 | 60.0% |
| PAT margin% | 7.12% | 9.06% | 3.59% | |
| Dep./revenue% | 2.72% | 3.23% | 3.14% | |
| Int./revenue% | 0.45% | 1.15% | 2.22% |
Lohia Corp Limited IPO Strengths:
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Lohia Corp Limited is the market leader in India providing end-to-end manufacturing solutions for the Raffia industry with a market share of more than 80% in terms of value and volume, in the machine segment up to the plastic weaved fabric stage in Fiscal 2022. Lohia Corp Limited is also one of the leading manufacturers globally of machinery and equipment used in the production of technical textile, in particular for manufacturing PP and HDPE Raffia, with a global market share of 17.5% across all Raffia machinery and more than 28.7% for machines used in PP/ HDPE fabric making.
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The Government of India (“GoI”) has introduced several initiatives and incentives to make the industry favorable for growth. These include the Amended Technology Upgradation Fund Scheme (“ATUFS”), under the Ministry of Textiles, which aims to facilitate employment, investment, quality, productivity, as well as import substitution in the textile industry while also indirectly promoting investments in the manufacturing of machinery for textiles, including technical textile.
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The China plus One strategy has augmented the manufacturing sector. In the packaging industry, for instance, there is an increasing requirement for woven plastic bags for packaging foodgrains owing to the non-availability of jute bags, as the jute mills have failed to meet demands and the cost of raw jute has increased significantly.
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Lohia Corp Limited provides comprehensive solutions and manufactures quality, technologically advanced machinery and equipment for the technical textiles industry. The backward integration capabilities reduce the dependence of the company on an external supply of parts and components for machine manufacturing and support services and enable maintenance of quality control required to service global and national technical textile players.
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Lohia Corp Limited’s balance sheet position, healthy order book, and consistent operating cash flows will enable it to pursue its growth opportunities and also fund its strategic initiatives. The company expects that its operational and financial performance will allow it to capitalize on the tailwinds in the industry in which it operates.
Lohia Corp Limited IPO Risk Factors:
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Lohia Corp Limited is exposed to foreign currency fluctuation risks, particularly in relation to the import of raw materials and export of products, which may adversely affect the results of operations, financial condition, and cash flows of the company
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Lohia Corp Limited is heavily dependent on the performance of the plastic woven fabric machines market. The plastic woven fabric machines market depends on the growth of end-use industries such as agro-textiles, building textiles, geo-textiles, and packing textiles. Any slowdown in these end-use industries or any other adverse changes in the conditions affecting the plastic woven fabric machines market can adversely impact the business, financial condition, results of operations, cash flows, and prospects of the company.
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Significant increases or fluctuations in prices of, or shortages of, or delays or disruption in supply of primary raw materials could affect the estimated costs, expenditures, and timelines which may have a material adverse effect on the business, financial condition, results of operations and cash flows of the company
Objects of the Offer:
The objects of the Offer are:
- To carry out the Offer for Sale of up to 31,695,000Equity Shares by the Selling Shareholders.
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Lohia Corp Limited IPO Prospectus:
- Lohia Corp Limited IPO DRHP – https://www.sebi.gov.in/filings/public-issues/sep-2022/lohia-corp-limited-drhp_63601.html
- Lohia Corp Limited IPO RHP –
Registrar to the offer:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 22 4918 6200
Email: lohia.ipo@linkintime.co.in
Website: www.linkintime.co.in
IndiaFirst Life Insurance Company Limited IPO FAQ
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Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The Lohia Corp IPO listing date is <>.
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