Neetu Yoshi Limited, a promising metallurgical engineering company, has received a tremendous response from investors during its IPO, which closed on July 1, 2025. The book-built issue was worth ₹77.04 crore, entirely comprising a fresh issue of 1.0272 crore equity shares.

The price band was set at ₹71 to ₹75, and at the upper price band, the market capitalization of Neetu Yoshi stood at approximately ₹291.09 crore. The shares are scheduled to be listed on the BSE SME platform on July 4, 2025, and the allotment was finalized on July 2, 2025.

The IPO saw massive participation, with a subscription of 119.19 times overall on the final day. This impressive figure reflects strong investor confidence in Neetu Yoshi’s financial fundamentals, industry potential, and growth trajectory.

Company Overview: Neetu Yoshi Limited

Neetu Yoshi Limited specializes in the manufacturing of customized ferrous metallurgical products. Their product portfolio includes a wide range of mild steel, cast iron, spherical graphite iron, and manganese steel components, with weights ranging from 0.2 kg to 500 kg. These products are extensively used across sectors like engineering, construction, automotive, and heavy industries.

The company’s strength lies in its ability to produce tailored metallurgical components that meet the exact specifications and industrial requirements of its clients. With an emphasis on quality and innovation, Neetu Yoshi has positioned itself as a preferred supplier for custom-grade metallurgy solutions in India.

Financial Performance

The financial trajectory of Neetu Yoshi reflects sustained growth and strong profitability:

• Revenue from operations rose sharply from ₹462.99 lakh in FY22 to ₹4,745.36 lakh in FY24, and ₹5,146.85 lakh for the nine months ending Dec 31, 2024.

• EBITDA increased from ₹17.49 lakh in FY22 to ₹1,718.56 lakh in FY24.

• Profit after Tax (PAT) surged from ₹7.03 lakh in FY22 to ₹1,257.72 lakh in FY24, and ₹1,199.24 lakh for the nine months of FY25.

These figures show a remarkable year-on-year growth, indicating the company’s operational efficiency and expanding market footprint. The company also exhibits a Return on Capital Employed (ROCE) of 43.74%, Return on Net Worth (RoNW) of 99.28%, and a pre-issue EPS of ₹7.39.

IPO Valuation Analysis

The IPO is fairly valued, based on the following key metrics:

• Pre-Issue P/E Ratio: 10.15x

• Post-Issue P/E Ratio: 23.17x

• Industry Average P/E Ratio: 25x

• Annualized EPS: ₹4.11

• Annualized P/E Ratio: 18.26x

These valuation multiples suggest that Neetu Yoshi IPO is competitively priced relative to its peers in the metallurgy and engineering sectors, offering moderate listing gains potential.

Anchor Investor Participation

The company successfully raised ₹21.9 crore from anchor investors, allocating 29,20,000 shares at the upper price band of ₹75 per share. Anchor participation typically reflects institutional trust in the issuer’s fundamentals and growth outlook.

Grey Market Premium (GMP) Trends

As per data available on 23rd June 2025, the GMP for Neetu Yoshi IPO stood at ₹9, signaling an expected listing price of ₹84, representing a 12% premium. The GMP, while unofficial and unregulated, is often considered a sentiment indicator and shows investor enthusiasm ahead of the listing.

IPO Subscription Status

The IPO saw overwhelming investor participation, especially from retail and HNI categories. The final subscription numbers are as follows:

• Overall Subscription: 119.19x

• Strong Demand Across Categories: Led by enthusiastic participation from individual investors and institutional segments.

IPO Objectives and Fund Utilization

The proceeds of the IPO will be deployed toward:

1. ₹50.78 crore for the establishment of a new manufacturing facility, to increase capacity and meet rising demand.

2. Remaining balance for general corporate purposes, such as operational enhancements, business expansion, and contingency planning.

Promoter & Leadership Background

The company is promoted by Himanshu Lohia and Subodh Lohia, who bring over four years of experience in production and financial operations.

• Himanshu Lohia has a business background with experience in Neetus Delight Private Limited and Neetu Realty Private Limited.

• Saundarya Lohia, the CFO, has also served in Hariom Industries Limited and brings significant expertise in finance and strategic planning.

Their combined leadership provides the vision and operational discipline necessary for growth in the competitive metallurgical industry.

Strengths of Neetu Yoshi Limited

1. Custom Product Manufacturing: Ability to create metallurgical products across varying grades and sizes makes it adaptable to client needs.

2. Rapid Revenue Growth: FY22 to FY24 saw a massive scale-up in top-line and bottom-line, showing strong demand and execution capabilities.

3. Efficient Cost Management: Higher EBITDA margins reflect lean operations and cost control.

4. Strong Promoter Background: With cross-industry exposure, promoters bring strategic thinking and market adaptability.

5. Anchor Backing and Oversubscription: Institutional interest underscores investor confidence.

Risks and Concerns

1. Raw Material Price Fluctuations: Being a metallurgical manufacturer, the company is exposed to commodity price volatility, especially in iron and steel.

2. Limited Operational History: Though recent financials are strong, the business has limited historical data, which poses scaling and continuity risks.

3. Regulatory and Environmental Compliance: Manufacturing industries face strict regulatory norms, non-compliance of which could attract penalties.

4. Dependence on Domestic Market: Lack of international diversification makes the business susceptible to domestic economic cycles.

5. Project Execution Risk: Delay or cost-overruns in setting up the new manufacturing facility may affect profitability.

Conclusion and Investment Perspective

The Neetu Yoshi IPO review suggests a high-growth, capital-efficient business with an attractive financial profile and a clear strategy for expansion. The company’s backward integration plan through the new manufacturing facility and its custom product focus make it a unique player in the metallurgical space.

The GMP premium of 12%, strong oversubscription of 119x, and solid financial growth metrics make the IPO attractive for short-term listing gains. However, due to the inherent risks in execution and limited operational track record, it is recommended only for investors with a higher risk appetite.

Recommendation: Risk-taking investors may apply for listing gains, while long-term investors should monitor post-listing performance and scalability.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice or a recommendation. Investment in securities is subject to market risks. Please consult with a certified financial advisor before investing.

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