Lohia Corp shares listed over 8% above the IPO price, beating muted grey market expectations.
The IPO was subscribed 7.25 times, led by strong demand from qualified institutional buyers.
Analysts recommend holding the stock for the long term, citing growth in technical textiles.
Lohia Corp Makes Strong Stock Market Debut; Shares Jump Over 8% On Listing
The technical textile machinery maker delivered a stronger-than-expected market debut, outperforming grey market estimates that had indicated only a modest premium
Lohia Corp Makes Strong Stock Market Debut; Shares Jump Over 8% On Listing
Summary
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Shares of Lohia Corp made a strong stock market debut on Thursday, listing at a premium of more than 8% over their issue price, outperforming grey market expectations after the company's ₹1,101.28-crore initial public offering (IPO) was subscribed 7.25 times.
The stock listed at ₹461 on the NSE, a premium of 8.47% over the IPO price of ₹425 per share. On the BSE, it debuted at ₹460, up 8.24% from the issue price.
Following the listing, the company's market capitalisation stood at ₹4,859.90 crore.
Listing Tops Grey Market Estimates
The market debut exceeded grey market expectations, with the grey market premium (GMP) indicating a listing gain of only around 2% ahead of the listing.
The IPO, which was open for subscription between July 23 and July 27, received bids for 10.41 crore shares against 1.44 crore shares on offer.
The Qualified Institutional Buyers (QIB) portion was subscribed 9.11 times, while the Non-Institutional Investor (NII) category was subscribed 6.82 times. The Retail Individual Investor (RII) segment was booked 2.77 times.
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The issue comprised entirely an offer for sale (OFS) of 2.59 crore equity shares by existing shareholders, with no fresh issue component. The price band was fixed at ₹405-425 per share.
Equirus Capital was the book-running lead manager, while MUFG Intime India acted as the registrar to the issue.
Analysts Recommend Holding For Long Term
Ravi Singh, Chief Research Officer, said the company's listing reflected investor confidence in its long-term growth prospects.
He noted that Lohia Corp is a leading global manufacturer of technical textile machinery focused on polypropylene (PP) and high-density polyethylene (HDPE) woven raffia solutions, with six manufacturing facilities across India, the US and Italy.
According to Singh, the long-term investment case is supported by rising demand for PP and HDPE woven products, increasing global packaging consumption and continued investments in technical textile manufacturing capacity. He, however, advised investors to monitor upcoming quarterly results to assess the sustainability of margins amid competitive pricing pressure.
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Shivani Nyati, Head of Wealth at Swastika Investmart, said the stock's listing at a premium of around 8.2% reflected fair-to-moderate pricing rather than excessive optimism despite the company's strong return on net worth and leadership in the raffia machinery segment.
She recommended that long-term investors continue to hold the stock in line with the original investment thesis, while suggesting a stop-loss of ₹415-420, close to the issue price, for investors looking to protect listing gains in the short term.