Yashhtej Industries IPO Makes Weak Debut with 20% Discount, Lists at ₹88 then Hits Lower Circuit Against Poor 1.37x Subscription

Yashhtej Industries (India) Ltd, a company incorporated in 2018 engaged in manufacturing/processing of soybean crude oil from soybeans through solvent extraction process and manufacturing of Soybean De-Oiled Cake (DOC) which is the solid residue or by-product remaining after oil extraction from soybeans rich in proteins and minerals operating in business to business (B2B) segment supplying crude oil to customers engaged in undertaking refining activity with automated manufacturing processes, in-house laboratory for quality check, and customization in DOC offerings having also entered into segment of solar power generation and supply of the same, made a weak debut on BSE SME on Wednesday, February 25, 2026. After closing its fixed price IPO bidding between February 18-20, 2026, the company commenced trading with a steep discount of 20% opening at ₹88.00 and quickly hit lower circuit at ₹83.60 (down 24% from issue price).

Yashhtej Industries Listing Details

Yashhtej Industries launched its fixed price IPO at ₹110 per share with minimum investment of 2,400 shares costing ₹2,64,000. The IPO barely scraped through with subscription of only 1.37 times - individual investors at 2.35 times, NII severely undersubscribed at 0.39 times, total applications of only 4,089.

First-Day Trading Performance

Listing Price: Yashhtej Industries opened at ₹88.00 representing steep discount of 20% from issue price of ₹110.00, quickly hit lower circuit at ₹83.60 (down 24%), with VWAP at ₹86.84, reflecting extremely negative market sentiment with severe opening discount followed by immediate lower circuit hit creating massive investor losses with market capitalisation declining to ₹192.95 crore against pre-IPO market cap of ₹253.88 crore and turnover of only ₹63.57 lakh with traded volume of merely 0.73 lakh shares with 100% sell-side visible in order book indicating complete absence of buying interest.

Growth Drivers and Challenges

Growth Drivers:

Diversified Revenue Streams: Entry into solar power generation and supply segment providing additional revenue stream beyond core soybean processing business with forward integration plans into edible soybean oil segment.

Government Support: Benefiting from government incentive support for agri-processing sector with B2B business model ensuring stable customer relationships with refiners undertaking refining activities.

Strong Revenue Growth: Revenue growing from ₹12.00 crore in FY23 to ₹324.96 crore in FY25, ROE of 31.19%, ROCE of 17.98%, improving profitability from loss-making to profitable operations.

Challenges:

Severe Market Rejection: IPO barely subscribed at 1.37 times with NII severely undersubscribed at 0.39 times and only 4,089 applications, opening discount of 20% followed by lower circuit at 24% down demonstrating complete market rejection and massive investor losses.

High IPO Expenses: Company spending over 10% of issue size (₹9.39 crore out of ₹88.88 crore) for IPO expenses raising eyebrows over fund utilisation efficiency.

High Leverage: Debt-to-equity ratio of 1.39 with total borrowings of ₹37.47 crore against net worth of ₹26.87 crore, thin PAT margin of only 3.79%, significant promoter dilution from 100% to 65% post-IPO.

Utilisation of IPO Proceeds

Capital Expenditure: ₹63.88 crore for capital expenditure representing largest allocation for expanding manufacturing capacity and infrastructure.

General Corporate Expenses: ₹9.50 crore for general corporate expenses.

Working Capital: ₹6.11 crore for funding working capital requirements supporting soybean processing operations.

Financial Performance

Revenue: ₹191.22 crore for H1 FY26, ₹324.96 crore for FY25, massive growth from ₹59.25 crore in FY24 and ₹12.00 crore in FY23.

Net Profit: ₹7.25 crore in H1 FY26, ₹11.57 crore in FY25, turnaround from ₹1.13 crore in FY24 and loss of ₹0.58 crore in FY23, demonstrating improving but sustainability-questionable profitability with post-IPO EPS of ₹6.28 and P/E of 17.51x.