The Neetu Yoshi IPO has opened for subscription from June 27 to July 01, 2025, and it presents a unique opportunity for investors seeking exposure to a metallurgical engineering company with a solid growth record. This Book Built Issue of ₹77.04 Crores consists of a fresh issue of 1.0272 crore shares, priced between ₹71 and ₹75 per equity share.

The minimum lot size is 1,600 shares, which means retail investors must invest at least ₹1,20,000, while High-Net-Worth Individuals (HNIs) will have to apply for two lots or ₹2,40,000. At the upper end of the price band, the market capitalisation of Neetu Yoshi Limited will be approximately ₹291.09 Crores.

The IPO has drawn initial interest with a Grey Market Premium (GMP) of ₹9, indicating an expected listing price of ₹84, or a 12% premium over the issue price. While this GMP is promising, it must be noted that grey market trends are unregulated and unofficial, and they should not form the sole basis of any investment decision.

The company will be listed on the BSE SME platform, and the allotment date is expected on July 02, 2025, with shares likely to be listed by July 04, 2025. Investors can check their allotment status on the website of the registrar, Skyline Financial Services Private Limited, by providing the application number, PAN, or DP Client ID.

Neetu Yoshi Limited specializes in manufacturing customized ferrous metallurgical products. These include mild steel, spherical graphite iron, cast iron, and manganese steel, with the capacity to produce components ranging from 0.2 kg to 500 kg. This diverse product line allows the company to cater to multiple industries requiring high-performance metal components.

Financial performance has been impressive:

• Revenue from Operations:

  • FY22: ₹462.99 Lakh

  • FY23: ₹1,632.83 Lakh

  • FY24: ₹4,745.36 Lakh

  • Dec 31, 2024 (9 months): ₹5,146.85 Lakh

• EBITDA:

  • FY22: ₹17.49 Lakh

  • FY23: ₹120.55 Lakh

  • FY24: ₹1,718.56 Lakh

  • Dec 31, 2024: ₹1,684.88 Lakh

• Profit After Tax (PAT):

  • FY22: ₹7.03 Lakh

  • FY23: ₹42.32 Lakh

  • FY24: ₹1,257.72 Lakh

  • Dec 31, 2024: ₹1,199.24 Lakh

This strong financial growth reinforces the company’s credibility ahead of its IPO. Additionally, the company shows excellent capital efficiency, with Return on Capital Employed (ROCE) at 43.74%, and Return on Equity (ROE) and Return on Net Worth (RoNW) both at 99.28% for FY24.

The pre-issue EPS for FY24 is ₹7.39, while post-issue EPS drops to ₹3.24 due to increased share capital. At the issue price of ₹75, the pre-issue P/E ratio is 10.15x, and post-issue P/E ratio is 23.17x, which is quite competitive when compared to the industry average P/E of 25x. The annualised EPS of ₹4.11 leads to an annualised P/E of 18.26x, indicating that the IPO is fairly priced.

The primary objectives of the IPO are:

1. ₹5,078.37 Lakh for setting up a new manufacturing facility

2. Utilisation for general corporate purposes

The company has also successfully raised ₹21.9 Crores from Anchor Investors by allotting 29,20,000 shares at ₹75 each, showcasing strong institutional confidence in its future growth. These shares were allocated from the Qualified Institutional Buyers (QIB) portion, and were finalised in consultation with the Book Running Lead Manager, Horizon Management Private Limited.

Apart from the lead manager and registrar, the company has appointed NNM Securities Private Limited, R. K. Stockholdings Private Limited, and Choice Equity Broking Private Limited as its market makers, ensuring ample liquidity post-listing on the SME platform.

The promoters of Neetu Yoshi Limited are Himanshu Lohia, Subodh Lohia, and Saundarya Lohia. They bring a collective experience of 4+ years in production and financial management. Their involvement in other companies like Neetu Realty Private Limited, Neetus Delight Private Limited, and Hariom Industries Limited further strengthens their credibility.

The IPO has received a subscription of 0.54 times on Day 1, which is typical in SME IPOs and usually picks up on the final day. While early subscription data is not a full indicator of success, it does reflect initial retail sentiment.

Looking at the overall picture, Neetu Yoshi Limited IPO offers a unique opportunity in the metallurgical space, with its diverse product offering, strong financial growth, efficient capital management, and fair valuation metrics. The GMP of ₹9 also suggests that the stock may list at a premium.

However, it’s essential to understand that the SME segment carries higher risk, and investors should assess their own risk tolerance before subscribing. For those comfortable with the volatility associated with SME listings, this could be a rewarding bet.

In summary, the Neetu Yoshi IPO looks promising based on its robust financial performance, competitive pricing, and positive market indicators like anchor investment and GMP. While listing gains are expected, only risk-tolerant investors are advised to subscribe.

Disclaimer:
The information in this article is meant for educational and informational purposes only. It does not constitute financial advice or a recommendation to invest. Readers are advised to conduct their own research or consult with a certified financial advisor before making any investment decisions. All figures and opinions are based on publicly available information as of the publication date and may be subject to change. Neither the publisher nor the author holds responsibility for any financial losses arising from investments based on this content.

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