Lohia Corp IPO sees increased retail interest on Day 2, subscription hits 0.59 times
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The Lohia Corp Limited IPO has seen increased interest, with overall subscription rising to 0.59 times on Day 2, driven by strong retail investor participation at 1.08 times. The Non-Institutional Investor category also improved to 0.42 times, while Qualified Institutional Buyers saw a slight increase to 0.51 times. Analysts recommend a long-term subscription, although caution is advised due to the company's reliance on a single revenue segment and its fully priced valuation.
The Lohia Corp Limited IPO gathered momentum on its second day of bidding on Friday, with overall subscription rising to 0.59 times as of close, up from 0.39 times at the close of Day 1.
The most significant development on Day 2 was retail investors crossing the fully subscribed mark. The Retail Individual Investor (RII) category was subscribed 1.08 times, with bids received for 27.89 lakh shares against the 25.73 lakh shares reserved for the category. This compares to a 0.66x subscription from retail on Day 1, signalling growing interest from individual investors as the IPO window progresses.
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The Non-Institutional Investor (NII) category also saw a sharp jump, rising to 0.42 times from just 0.15 times on Day 1. Bids worth 16.05 lakh shares were received against the 38.59 lakh shares on offer in this segment. High-net-worth individuals bidding above ₹10 lakh accounted for 10.56 lakh shares at 0.41x, while the sub-₹10 lakh NII bucket stood at 0.43x.
The Qualified Institutional Buyer (QIB) portion moved marginally to 0.51 times from 0.43 times on Day 1. Notably, Foreign Institutional Investors entered the book on Day 2 with bids for 6.35 lakh shares, a category that had recorded zero participation on the opening day. Mutual funds held their position at 32.94 lakh shares, unchanged from Day 1. The employee reservation portion stood at 0.74 times with 1.47 lakh shares bid.
In total, cumulative bids stood at 84.74 lakh shares against the 1.43 crore shares on offer across all categories.
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The IPO, priced at ₹404–425 per share, is entirely an Offer for Sale with no fresh issue component, meaning the company receives no proceeds. Analysts from Anand Rathi, HDFC Securities, and SBI Securities have all assigned a Subscribe for Long Term rating, while flagging the stock as fully priced at a P/E of approximately 22–23 times FY26 earnings and the company’s heavy dependence on the woven raffia machinery segment at over 88 per cent of revenues.
The issue closes on Monday, July 27, 2026. Institutional bids, which typically arrive in force on the final day, will determine whether the issue achieves full subscription.
Original Article
Published on Hindu BusinessLine