Yajur Fibres IPO Closes Oversubscribed at 1.23x, Retail Leads at 1.32x
Yajur Fibres Limited's ₹120.41 crore IPO concluded with 1.23 times oversubscription, driven primarily by retail investor demand at 1.32 times. The company, established in 1980 as part of The Kankaria Group, operates India's largest bast fibre processing units and demonstrated strong financial growth with total income rising 67.34% and profit after tax surging 173.53% year-on-year.
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Yajur Fibres Limited's IPO concluded with strong investor response, achieving 1.23 times oversubscription by the close of the three-day subscription window. The book-built issue worth ₹120.41 crores showed significant improvement from the initial day's 0.88 times subscription, with retail investors leading the demand at 1.32 times subscription. The grey market premium (GMP) remained at ₹10, indicating potential listing gains of 5.75% over the upper price band of ₹174.
Final Subscription Performance
The IPO demonstrated robust participation across most investor categories, with retail investors showing the strongest appetite for the issue. Qualified Institutional Buyers maintained their subscription at 1.03 times, while the Non-Institutional Investor categories showed mixed response.
| Investor Category | Final Subscription Status |
|---|---|
| Overall Subscription | 1.23 times |
| Retail Investors | 1.32 times |
| QIBs | 1.03 times |
| bHNI (Big HNI) | 1.11 times |
| sHNI (Small HNI) | 0.93 times |
| Employees | 0.00 times |
Based on the current GMP of ₹10 and upper price band of ₹174, the estimated listing price stands at ₹184 per share, though grey market premiums are speculative indicators.
IPO Structure and Upcoming Timeline
The issue comprises entirely a fresh issue of 69 lakh shares, priced in the band of ₹168-174 per share. Retail investors needed to invest ₹2.78 lakh for a minimum application of two lots (1,600 shares), while high net-worth investors required ₹4.18 lakh for three lots (2,400 shares).
| IPO Timeline | Date |
|---|---|
| Allotment Finalization | January 12 |
| Refund Initiation | January 13 |
| Share Credit | January 13 |
| Listing Date | January 14 (BSE SME) |
Horizon Management Pvt. Ltd. serves as the book-running lead manager, while MAS Services Ltd. acts as registrar and Giriraj Stock Broking Pvt. Ltd. as market maker.
Company Profile and Market Position
Established in 1980, Yajur Fibres Limited operates as part of The Kankaria Group, a multi-billion conglomerate with over 20,000 workforce. The company ranks among India's largest bast fibre processing and cottonising units, specializing in processing flax, jute, and hemp into cotton-like short staple fibres.
The Howrah-based facility spans 19 acres in West Bengal's jute hub at Jagannathpur, with manufacturing capacity exceeding 300 MT per month. The company serves over 250 customers across five countries including India, Turkey, Indonesia, Nepal, and Bangladesh.
Strong Financial Performance
Yajur Fibres Limited demonstrated robust financial growth in recent periods. Total income surged to ₹141.99 crores from ₹84.85 crores, while profit after tax jumped to ₹11.68 crores from ₹4.27 crores year-on-year.
| Financial Metric | Previous Period | Recent Period | Growth (%) |
|---|---|---|---|
| Total Income (₹ Cr) | 84.85 | 141.99 | +67.34% |
| Profit After Tax (₹ Cr) | 4.27 | 11.68 | +173.53% |
| PAT Margin (%) | 5.03 | 8.23 | +320 bps |
Fund Utilization Strategy
IPO proceeds will support capacity expansion at the existing West Bengal manufacturing facility through new shed construction and installation of dyeing and bleaching machinery. The company plans significant investment in subsidiary Yashodha Linen Yarn Limited for establishing a greenfield unit in Madhya Pradesh's DMIC Industrial Park in Ujjain, focused on wet-spun linen yarn and blended yarn production.
| Fund Allocation | Purpose |
|---|---|
| Manufacturing Expansion | New shed and machinery installation |
| Subsidiary Investment | Yashodha Linen Yarn greenfield unit |
| Working Capital | Operational requirements |
| General Corporate | Strategic initiatives |
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