Yashhtej Industries share price made a lacklustre debut in the Indian stock market on Wednesday, February 25. The stock listed at a 25% discount to the IPO price of ₹110 per share.
Yashhtej Industries share price opened at ₹88 apiece on BSE SME. This means that the IPO allottees made a 25% loss on Yashhtej Industries’ IPO listing.
Yashhtej Industries IPO listing was below the market expectations. Ahead of the listing, the GMP of Yashhtej Industries IPO was ₹0, which indicated the estimated listing price to be the same as the IPO price.
Yashhtej Industries IPO details
The issue was open for subscription between February 18 and February 20, with the allotment finalised on February 23.
By the end of the third day, the IPO was subscribed 1.37 times. The retail segment saw a subscription of 2.35 times, while the non-institutional investor (NII) portion was subscribed 0.39 times. The company received bids for 1.05 crore shares against the 1.32 crore shares on offer.
The ₹88.88-crore IPO consisted entirely of a fresh issue of 80.79 lakh equity shares, with no offer-for-sale (OFS) component. The shares were priced at a fixed ₹110 apiece. Investors could bid in lots of 1,200 shares, with the minimum investment for retail participants set at ₹2,64,000, equivalent to 2,400 shares at the issue price.
According to the offer documents, the net proceeds will be utilised for working capital needs, capital expenditure, and general corporate purposes.
Erudore Capital Private Limited is serving as the book-running lead manager for the issue, while MAS Services Ltd. has been appointed as the registrar. Prabhat Financial Services Ltd. will act as the market maker.
Latur-based Yashhtej Industries operates in the production of soybean crude oil through the solvent extraction process and also manufactures soybean de-oiled cake (DOC). DOC, commonly known as soya meal, is the protein- and mineral-rich residue obtained after oil extraction. The crude soybean oil produced by the company requires further refining before being used as edible oil.
The company primarily follows a business-to-business (B2B) model, supplying crude soybean oil to customers engaged in refining operations. Additionally, de-oiled cake (DOC) is mainly used as animal feed in the poultry industry, offering the company a secondary yet significant revenue stream.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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