Neetu Yoshi Limited, has rapidly evolved from a raw material trader to a specialized engineering and manufacturing firm in critical railway safety components sector.
IPO Details
- IPO Opening Date: June 27, 2025
- IPO Closing Date: July 1, 2025
- IPO Size: ₹77.04 Crores, consisting of 1,02,72,000 equity shares
- Fresh and OFS Portion: The issue is entirely a fresh issue. There is no offer for sale portion
- Price:
- Face Value: ₹5 Per Equity Share
- Issue Price Band: ₹71 to ₹75 Per Equity Share (Note: The exact price band figures were not explicitly stated as ₹71-₹75 in the provided sources, but the RHP mentions the price band will be decided in consultation with the BRLM and advertised. The prior context implied these values in the original post.)
- Allocation for Different Category of Investors:
- Market Maker Shares: 5,20,000 shares (5.06%)
- Qualified Institutional Buyers (QIBs): 48,72,000 shares (47.43%), including 29,20,000 shares (28.43%) for Anchor Investors
- Non-Institutional Investors (NII/HNI): 14,65,600 shares (14.27%)
- Retail Individual Investors (RII): 34,14,400 shares (33.24%)
- Lead Managers: Horizon Management Private Limited
- Registrar: Skyline Financial Services Private Ltd
About the Company
- Neetu Yoshi Limited was incorporated in January 2020 as a private limited company and converted to a public limited company on May 18, 2024.
- The company operates as an RDSO-certified foundry with an integrated CNC machine shop. Its core business is the manufacturing of customized ferrous metallurgical products, specifically railway safety components for the Indian Railways. These components are used in braking solutions, suspensions, propulsion aids, and coupling attachments for various parts of trains.
- The company’s manufacturing facility is located at Fakkarhedi, Bhagwanpur, Uttarakhand, spanning 7,173 square meters. It is a fully integrated facility with capabilities for melting, moulding, machining, heat treatment, forging, and painting. As of March 2024, it had an installed capacity of 4,493 MTPA, which has since expanded to 8,087 MTPA. The company operates from a single manufacturing unit.
- The company’s promoters are Himanshu Lohia, Subodh Lohia, and Saundarya Lohia.
Financials (Restated Consolidated)
(All figures in ₹ Crores)
| Particulars | 9M FY2025 (Period ended Dec 31, 2024) | FY 2023-24 (Year ended Mar 31, 2024) | FY 2022-23 (Year ended Mar 31, 2023) | FY 2021-22 (Year ended Mar 31, 2022) |
|---|---|---|---|---|
| Total Income | 51.36 | 47.33 | 16.23 | 4.58 |
| EBITDA | 16.84 | 17.18 | 1.20 | 0.17 |
| Profit After Tax | 11.99 | 12.57 | 0.42 | 0.07 |
Financial Analysis: Neetu Yoshi Limited has demonstrated exceptional growth in its financial performance over the past three fiscal years. The significant surge in Profit After Tax in FY2024 indicates a strong increase in operational efficiency and market penetration. The impressive 9-month figures for FY2025 suggest a continuation of this robust performance.
Anchors:
The anchor investors for Neetu Yoshi Limited IPO include Aarth AIF (9.15%), Chhattisgarh Investments Limited (6.74%), Ekamya Pragati Fund (4.61%), Eminence Fund (4.61%), Globe Capital Market Limited (4.61%), Globe Fincap Limited (4.61%), ITI Growth Opportunities Fund (6.74%), ITI Small Cap Fund (6.74%), ITI Value Fund (6.74%), Jainam Broking Limited (4.61%), and Sunness Capital India Private Limited (4.61%) as per the anchor investor allocation
Salient Points: Neetu Yoshi Limited IPO
- Use of Funds: The net proceeds from the IPO are primarily intended for the setting up of a new manufacturing facility (₹50.78 Crores) in Kanpur Nagar, Uttar Pradesh, and for general corporate purposes. The amount for general corporate purposes will not exceed 25% of the gross proceeds.
- Expected Growth in Segments (Business Scenario): The company operates in the crucial railway safety components sector for Indian Railways. It plans to expand RDSO approval for additional products, which will solidify its market position and diversify product offerings. The company also sees scope to expand into other heavy industries requiring high-quality castings and engineered components, potentially providing export opportunities and diversifying business operations.
- Focus on Major Product or Services: The company’s main activity is the manufacturing of customized ferrous metallurgical products, with a key focus on railway safety components vital for braking systems, suspensions, and coupling attachments in trains.
- Revenue Split by Region: Geographically, West Bengal is a dominant revenue contributor, accounting for 48.11% in 9M FY2025 and 82.09% in FY2024. Uttarakhand contributed 0.10% in 9M FY2025.
- Revenue Split by Product or Service Category: The company’s revenue is highly concentrated within the Indian Railways sector, contributing approximately 98.98% in 9M FY2025, 99% in FY2024, and 99% in FY2023.
- Capacity Utilisation: The company’s installed manufacturing capacity has notably increased from 4,493 MTPA as of March 2024 to 8,087 MTPA currently.
- Expansion Planned: A substantial portion of the IPO proceeds, ₹50.78 Crores, is allocated for setting up a new manufacturing facility in Kanpur Nagar, Uttar Pradesh. This expansion includes significant investment in civil and structural works and the acquisition of new plant and machinery.
- Major Clients: The company’s primary client is the Indian Railways. Its top customer in 9M FY2025 accounted for 26.38% of total sales, with the top 10 customers accounting for 86.87% of total sales.
- Working Capital and Receivables Trend: The company has transitioned to positive operating cash flows of ₹9.83 Crores in 9M FY2025 and ₹7.67 Crores in FY2024. Trade receivables stood at ₹11.77 Crores as of December 31, 2024.
- CAGR in Profits for Last 3 Years: While a direct CAGR calculation is not provided, the PAT increased from ₹0.07 Crores in FY2022 to ₹12.57 Crores in FY2024.
- Trend in EBITDA Margins over the Last 3 Years: The company’s EBITDA margins have shown a consistently strong upward trajectory, increasing from 3.81% in FY2022 to 7.43% in FY2023, and then dramatically to 36.31% in FY2024. For the nine-month period ending December 31, 2024, the EBITDA margin was 32.80%.
Peer Comparison:Neetu Yoshi Limited IPO
| Company | Year | Revenue (rs cr.) | Net Profit (Rs. Cr.) | NPM | EBIDTA Margins | P/E | Mrkt cap/Sales | D/E |
|---|---|---|---|---|---|---|---|---|
| Neeti Yoshi | FY24 | 47.33 | 12.57 | 26.6% | 36.31% | 23.15 | 6.15 | 0.88 |
| Neeti Yoshi | 9mFY25 | 53.16 | 11.99 | 22.36% | 18.2x | |||
| Gujarat Intrux | FY25 | 65 | 10.97 | 17% | 18.23% | 19.7 | 2.5 | 0.00 |
| Nelcast | FY25 | 1,252 | 36.89 | 3% | 7.14% | 23.2 | 1.1 | 0.53 |
| Steelcast | FY25 | 376 | 76.02 | 20% | 27.94% | 28.7 | 5.9 | 0.00 |
Management Commentary: Neetu Yoshi Limited IPO
Based on the Management’s Discussion and Analysis of Financial Condition and Results of Operations, the company has witnessed substantial increases in total income and revenue from operations, attributed partly to the commissioning of its machining workshop. Management notes significant growth in all key performance indicators, reflecting improvements in profitability and capital efficiency. The management believes the IPO will enhance the company’s corporate image, brand visibility, and provide liquidity to existing shareholders, while also creating a public trading market for its Equity Shares.
Opinion: Neetu Yoshi Limited IPO
I intend to apply in Neetu Yoshi Limited IPO. Company has grown well and is in a niche sector catering to safety assemblies that go into wagon manufacturing and is RDSO approved. The company has witnessed substantial increases in total income and revenue from operations, attributed partly to the commissioning of its machining workshop
P/E for FY24 is 23x, P/E for FY25 is 18.2x (annualized).
- SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
- This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.