Yajur Fibres is going public to raise Rs 120.41 crores. The SME IPO is entirely a fresh issue of 0.69 crore shares, which means the raised money will go to the company. The IPO bidding opened for subscription on January 7 and will close on January 9. The company has set the IPO price band between Rs 168 – 174 per share.
Yajur Fibres SME IPO: Allotment and listing
The allotment for the IPO is expected to be finalised on January 12, while the listing of the stock is likely to be on January 14, as per the tentative schedule.
Yajur Fibres SME IPO: Objectives of the issue
The company will be using Rs 11.93 crore for setting up 50,000 sq.ft. of shed in the existing manufacturing unit, and the purchase of Dyeing and Bleaching processing machinery, and installation of additional production capacity of 4 tons per day.
Further, the company will be using Rs 48 crore for investment in its subsidiary Yashodha Linen Yarn for setting up a greenfield unit at Ujjain, Madhya Pradesh, for 100% wet spun linen yarn and blended yarn. Also, Rs 36 crore will be used for funding working capital requirements.
Yajur Fibres SME IPO: Key financials
The company has posted consistent net profit growth over the last three years. The net profit for FY25 came in at Rs 42.32 crore, up from Rs 30.67 crore in FY24. The company had a net profit of Rs 26.41 crore in FY23.
Similarly, the company’s revenue has risen over the last three years, surging to Rs 142 crore in FY25 from Rs 84.85 crore in FY24. It came in at Rs 61.84 crore in FY23.
The company has a return on equity of 26.92%, while it has a return on capital employed of 17.14%. Its price-to-earnings ratio stands at 23.49 times, while its EPS stands at 7.41.
Yajur Fibres SME IPO: Key risks
CBI Investigation: An investigation was initiated by the Central Bureau of Investigation (CBI), and a charge sheet was filed alleging the wrongful disbursement of a subsidy totalling R 1.02 crores involving the company and other persons. While the proceedings have been stayed until February 2026, an adverse outcome could materially affect the company’s business.
Statutory Auditor qualifications: The Statutory Auditor reported qualifications in the audit reports for FY24 and FY23. These qualifications were due to the company not providing for employee retirement benefits (gratuity), which was a departure from prescribed Accounting Standards.
Yajur Fibres SME IPO: Lot size
A retail applicant needs to apply for a minimum of two lots that have 800 shares each, amounting to Rs 2.78 lakh. The minimum lot size investment for a High Networth Individual is 3 lots of 2,400 shares, aggregating to Rs 4.17 lakh.
Yajur Fibres SME IPO: Book-runner and registrar
Horizon Management is the book-running lead manager of the IPO, and MAS Services is the registrar of the issue. The Market Maker of the company is Giriraj Stock Broking.
About Yajur Fibres
Yajur Fibres is in the business of processing and manufacturing of bast fibres such as flax, jute, and hemp. The company, incorporated in 1980, cottonises long, brittle bast fibres into short, cotton-like fibres that blend easily with cotton and man-made fibres, revolutionising sustainable bast fibres with extensive R&D and commercial production.
SECURITIES WARNING: EXTREME INVESTMENT RISK
SME IPOs constitute investments of inherently extreme risk. These securities are only suitable for investors with a sophisticated understanding of capital markets and a demonstrated capacity for total loss of principal. Due to low liquidity, investors must be prepared for severe price volatility and material difficulty in exiting the position. This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.