Neetu Yoshi Limited, a specialized metallurgical engineering company, is set to launch its Initial Public Offering (IPO) from June 27 to July 01, 2025. This book-built issue is worth ₹77.04 crores, entirely comprising a fresh issue of 102.72 lakh equity shares. The IPO will be listed on the BSE SME platform, with a tentative listing date of July 4, 2025.

The price band is fixed at ₹71 to ₹75 per share, with a lot size of 1,600 shares. Retail investors will need to invest a minimum of ₹1,20,000, while High Net-Worth Individuals (HNIs) must apply for at least 2 lots (₹2,40,000). At the upper band of ₹75, the market capitalization of the company stands at ₹291.09 crores.

About the Company

Neetu Yoshi Limited is a metallurgical engineering company engaged in manufacturing customized ferrous metal products. Its product portfolio includes:

• Mild Steel

• Cast Iron

• Spherical Graphite Iron

• Manganese Steel

These products range in weight from as small as 0.2 kg to as large as 500 kg, offering both precision and customizability for industrial and engineering applications. Their core strength lies in being flexible and responsive to specific client needs, catering to a wide variety of industries.

The company’s products are designed for usage in engineering, automotive, construction, and heavy machinery sectors, which demand high-grade metallurgy and precision manufacturing.

IPO Objectives

Neetu Yoshi plans to use the net proceeds from the IPO as follows:

1. ₹50.78 crores to be deployed in setting up a new manufacturing facility, expanding capacity and technological advancement.

2. The remaining funds will be used for general corporate purposes, including brand positioning, working capital, and expansion into new markets.

This expansion will help increase its production output, penetrate new segments, and meet rising client demand.

Promoters and Management

The company is promoted by Himanshu Lohia, Subodh Lohia, and Saundarya Lohia. Their combined experience spans production, finance, and strategic leadership:

• Subodh Lohia has 4+ years of experience in finance and production.

• Saundarya Lohia served as CFO at Hariom Industries and brings a strong financial acumen to the board.

• The promoters also manage related ventures like Neetus Delight Private Limited and Neetu Realty Private Limited, indicating business diversification.

Despite being relatively new entrants (under 5 years' industry experience), their entrepreneurial track record shows consistency and execution ability.

Financial Performance

The company has exhibited strong financial growth over the past few years.

Revenue from Operations:

• FY22: ₹462.99 lakh

• FY23: ₹1,632.83 lakh

• FY24: ₹4,745.36 lakh

• FY25 (9 months ended Dec 31, 2024): ₹5,146.85 lakh

EBITDA:

• FY22: ₹17.49 lakh

• FY23: ₹120.55 lakh

• FY24: ₹1,718.56 lakh

• FY25 (9M): ₹1,684.88 lakh

Profit After Tax (PAT):

• FY22: ₹7.03 lakh

• FY23: ₹42.32 lakh

• FY24: ₹1,257.72 lakh

• FY25 (9M): ₹1,199.24 lakh

The explosive revenue and profit growth, especially in FY24 and the first 9 months of FY25, reflects strong operational performance and effective cost management.

Valuation and Ratios

At the IPO price of ₹75 per share, the valuation metrics are as follows:

• Pre-issue EPS (FY24): ₹7.39

• Post-issue EPS (FY24): ₹3.24

• Pre-issue P/E ratio: 10.15x

• Post-issue P/E ratio: 23.17x

• Industry P/E: ~25x

Other Key Ratios:

• ROCE (FY24): 43.74%

• ROE (FY24): 99.28%

• RoNW: 99.28%

• Annualised EPS: ₹4.11

• Annualised P/E: 18.26x

These metrics indicate excellent profitability and capital efficiency, suggesting the company is effectively using its resources to drive returns. The valuation appears fair, especially in light of recent earnings momentum.

Grey Market Premium (GMP)

As of June 23, 2025, the GMP stands at ₹9, implying an expected listing price of ₹84 — a 12% premium over the upper band of ₹75. This reflects positive market sentiment, likely based on the company's strong financials.

While GMP is an unofficial indicator, such a trend could point to a moderate listing gain opportunity, though subject to change based on subscription levels and market conditions.

IPO Allotment and Listing

• IPO Subscription Period: June 27 to July 01, 2025

• Allotment Date: July 02, 2025

• Tentative Listing Date: July 04, 2025

• Registrar: Skyline Financial Services Private Limited

How to Check Allotment Status:

After the allotment finalization on July 2, 2025, investors can:

1. Visit the registrar’s website.

2. Select Neetu Yoshi Limited IPO from the dropdown.

3. Enter Application Number / PAN / DP Client ID.

4. Click Submit to view allotment status.

Market Outlook and Industry Position

India’s ferrous metallurgy and casting market is growing steadily due to demand from automotive, construction, railways, defence, and machinery sectors. Neetu Yoshi’s ability to provide custom weight and grade solutions gives it a competitive edge in niche applications.

However, the industry is capital-intensive, cyclical, and dependent on commodity prices, which can affect margins.

Neetu Yoshi’s aggressive growth strategy through a new manufacturing facility is aligned with market trends, but scaling operations without compromising quality and margins will be the next critical challenge.

Final Recommendation

Given the strong revenue growth, high profitability, reasonable valuation, and moderate GMP, the Neetu Yoshi IPO is suitable for investors with a moderate-to-high risk appetite.

We recommend that Risk-Tolerant Investors Apply to this IPO for potential listing gains and long-term growth, especially considering its robust financials and market expansion plans.

Disclaimer: This IPO analysis is provided for informational and educational purposes only. It should not be construed as investment advice or a recommendation to apply. Investors must conduct their own due diligence or consult with a registered financial advisor before making any investment decisions. The above analysis is based on publicly available data and may be subject to changes.

The Upcoming IPOs in this week and coming weeks are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Adcounty Media India, Marc Loire Fashions, Indogulf Cropsciences, Moving Media Entertainment, Valencia India, Neetu Yoshi, PRO FX Tech, Suntech Infra Solutions, Ace Alpha Tech.

The Current active IPO are Rama Telecom, Supertech EV, Sambhav Steel Tubes, HDB Financials, Abram Food, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Globe Civil Projects, Ellenbarrie Indutrial Gases, Kalpataru, AJC Jewel.

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