Neetu Yoshi IPO Makes Stellar Market Debut with 40% Listing Premium

The railway components manufacturer, Neetu Yoshi Limited, made an outstanding debut on the BSE SME platform on July 4, 2025. After closing its IPO bidding between June 27 - July 1, 2025, the company commenced trading with an impressive 40% premium to its issue price, delivering exceptional returns to investors backed by strong fundamentals in the railway infrastructure sector. This book-building IPO raised ₹77.04 crore with an extraordinary subscription of 128.18 times, reflecting exceptional investor confidence in the railway manufacturing sector as the company seeks to establish a new manufacturing facility to capitalise on India's expanding railway infrastructure development and modernisation initiatives.

 Neetu Yoshi Listing Details

Neetu Yoshi Limited launched its IPO at ₹75 per share with minimum investment of 1,600 shares costing ₹1,20,000. The IPO received phenomenal response with subscription of 128.18 times - NII segment leading at remarkable 256.69 times, QIB at 96.36 times, and retail at 91.21 times, demonstrating overwhelming investor enthusiasm across all categories.

Listing Price: The Neetu Yoshi share price opened at ₹105 on BSE SME on July 4, 2025, representing a premium of 40% from the issue price of ₹75, delivering exceptional gains for investors and reflecting confidence in railway sector prospects.
 

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First-Day Trading Performance Outlook

Neetu Yoshi delivered exceptional debut performance with substantial premium reflecting strong investor confidence in railway infrastructure companies with specialised manufacturing capabilities. The company, incorporated in 2020, manufactures customised ferrous metallurgical products ranging from 0.2kg to 500kg, serving Indian Railways with critical components including braking solutions, suspensions, and coupling attachments through its RDSO-certified manufacturing facility in Uttarakhand covering 7,173 sq. meters with 88 employees.

Growth Drivers and Challenges

Growth Drivers:

Railway Sector Focus: Positioned to benefit from India's massive railway infrastructure expansion and modernisation with RDSO certification ensuring quality standards compliance

• Specialised Product Portfolio: Comprehensive range of railway components including braking systems, suspensions, propulsion aids, and coupling attachments serving critical railway operations

• Strategic Manufacturing Location: Facility in Uttarakhand strategically located near alloy suppliers with lower electricity tariffs enhancing operational efficiency and cost competitiveness

• Strong Financial Performance: Exceptional margins with PAT margin of 26.58% and EBITDA margin of 36.31% demonstrating operational efficiency and pricing power

Challenges:

• Sustainability Concerns: Analyst highlights spurt in bottom lines from FY24 onwards raising concerns about long-term profitability sustainability
• High Valuation: Price-to-book value of 10.29 and post-issue P/E of 18.2 suggest premium pricing despite strong fundamentals
• Single Client Dependency: Heavy reliance on Indian Railways creates concentration risk from policy changes or procurement modifications
• Fully Priced Issue: Analyst notes issue appears fully priced based on recent financial data despite strong sector prospects

Utilisation of IPO Proceeds

•  New Manufacturing Facility: ₹50.78 crore for setting up new manufacturing facility to expand production capacity and serve growing railway infrastructure demand
• General Corporate Purposes: Remaining funds for strategic initiatives, operational requirements, and business development activities

Financial Performance of Neetu Yoshi

Revenue:  ₹51.47 crore for 9M FY25, showing solid growth from ₹47.45 crore in FY24, reflecting strong demand for railway components and successful market penetration

Net Profit: ₹11.99 crore in 9M FY25, demonstrating modest decline from ₹12.58 crore in FY24, though maintaining strong profitability levels in competitive manufacturing sector

Financial Metrics:Exceptional ROCE of 43.74%, outstanding RoNW of 99.20%, moderate debt-to-equity of 0.88, impressive PAT margin of 26.58%, and strong EBITDA margin of 36.31%

Neetu Yoshi represents an exceptional investment opportunity in the railway infrastructure sector with outstanding listing performance delivering 40% premium backed by strong fundamentals and market positioning. Despite concerns over valuation sustainability and analyst warnings about premium pricing, the company's RDSO certification, specialised product portfolio, and strategic positioning in India's expanding railway modernisation programme provide significant growth potential, validating extraordinary investor confidence reflected in the exceptional subscription and listing performance.