Yajur Fibres Limited Makes Weak Debut with 20.00% Decline, Lists at ₹139.20 Against Poor Subscription

Yajur Fibres Limited, incorporated in 1980 engaged in processing and manufacturing bast fibers including flax, jute, and hemp cottonizing long, brittle bast fibers into short, cotton-like fibers blending easily with cotton and man-made fibers revolutionizing sustainable bast fibers with extensive R&D and commercial production operating capacity over 300 MT per month of cottonized fiber, flax yarn, and jute yarn serving top spinning and weaving mills in India and abroad, made a weak debut on BSE SME on January 14, 2026. After closing its IPO bidding between January 7-9, 2026, the company commenced trading with a severe decline of 20.00% opening at ₹139.20 and hit lower circuit at ₹132.25 (down 23.99%).

Yajur Fibres Limited Listing Details

Yajur Fibres launched its IPO at ₹174 per share with minimum investment of 1,600 shares costing ₹2,78,400. The IPO received poor response with subscription of 1.33 times - individual investors at 1.51 times, QIB at 1.03 times, NII at 0.91 times.

First-Day Trading Performance

Listing Price: Yajur Fibres opened at ₹139.20 representing severe decline of 20.00% from issue price of ₹174.00, quickly hit lower circuit at ₹132.25 (down 23.99%), with VWAP at ₹133.24.

Growth Drivers and Challenges

Growth Drivers:

Growth Trajectory: Revenue increased 67% from ₹84.85 crore to ₹141.99 crore between FY24 and FY25, PAT surged 174% from ₹4.27 crore to ₹11.68 crore, ROE of 26.92%, ROCE of 17.14%, RoNW of 27.59%, PAT margin of 8.29%, EBITDA margin of 13.39%.

Expansion Plans: ₹48.00 crore investment in subsidiary Yashodha Linen Yarn Limited for greenfield unit at Vikram Udyogpuri, DMIC Industrial Park, Ujjain for 100% wet spun linen yarn and blended yarn, ₹11.93 crore for 50,000 sq.ft. shed plus dyeing and bleaching machinery adding 4 tons per day capacity.

Challenges:

Valuation Concerns: Issue appears aggressively priced according to analyst, extreme price-to-book of 8.86x, post-issue P/E of 36.96x appears extremely elevated versus pre-issue 23.49x, significant EPS dilution from ₹7.41 to ₹4.71 post-issue.

Financial Inconsistency: Analyst highlights bottom line marked inconsistency despite top line growth raising sustainability concerns.

High Leverage: Debt-to-equity of 1.35, total borrowings of ₹66.18 crore increasing to ₹73.59 crore in November 2025, significant promoter dilution from 100% to 69.49%, operating in competitive textile and fiber processing segment.

Utilisation of IPO Proceeds

Subsidiary Investment: ₹48.00 crore for investment in subsidiary Yashodha Linen Yarn Limited for greenfield unit at Ujjain for 100% wet spun linen yarn and blended yarn.

Capacity Expansion: ₹11.93 crore for setting up 50,000 sq.ft. shed and purchase of dyeing and bleaching processing machinery adding 4 tons per day production capacity.

Working Capital: ₹36.00 crore for funding working capital requirements supporting manufacturing operations.
General Corporate Purposes: ₹10.00 crore for general corporate purposes.

Financial Performance

Revenue: ₹141.99 crore for FY25, growth of 67% from ₹84.85 crore in FY24, reflecting expanding bast fiber cottonizing operations across flax, jute, and hemp processing.

Net Profit: ₹11.68 crore in FY25, growth of 174% from ₹4.27 crore in FY24, demonstrating dramatic profitability improvement though analyst questions bottom line consistency.

Financial Metrics: ROE of 26.92%, debt-to-equity of 1.35, ROCE of 17.14%, PAT margin of 8.29%, EBITDA margin of 13.39%, extreme price-to-book of 8.86x, post-issue EPS of ₹4.71 (versus pre-issue ₹7.41), extreme P/E of 36.96x, borrowings of ₹66.18 crore increasing to ₹73.59 crore, and market capitalisation of ₹299.98 crore representing severe listing decline with 20% opening loss followed by lower circuit creating 23.99% maximum losses despite being prominent manufacturer of premium cottonized bast fiber.