Lohia Corp Limited’s initial public offering has opened to a lackluster response, with subscription levels standing at just 0.39x on the first day of bidding.
The muted demand signals cautious sentiment among investors toward the Kanpur-based manufacturer of woven raffia machinery, despite the company’s position as a leading player in India’s steel and metal processing sector.
Analysts have noted the subdued interest as a potential concern for the final pricing and allocation process.
The IPO, which aims to raise ₹1,101.28 crore, had set a price band of ₹404 to ₹425 per equity share.
The low uptake on Wednesday suggests that the valuation may be testing investor patience, or that broader market conditions are weighing on appetite for new issues in the industrial machinery space.
Analysts have noted the subdued interest as a potential concern for the final pricing and allocation process.
Lohia Corp launched the offering to capitalize on growing demand for technical textiles machinery, a segment that has seen steady expansion.