The Yajur Fibres IPO is scheduled to open next week and falls under the SME (Small and Medium Enterprises) segment. The IPO will be open for subscription from January 7 to January 9.
The total size of the IPO is ₹120.41 crore, and it is a 100% fresh issue, meaning the company will issue new shares and no existing shareholders will sell their stake.
Through this IPO, the company plans to issue 6.9 million new equity shares.
Once the IPO process is completed, the shares of Yajur Fibres will be listed on the BSE SME platform.
Yajur Fibres IPO Price Band and Lot Size
The company has fixed the price band at ₹164 to ₹174 per share. The IPO has a lot size of 800 shares, but retail investors are required to apply for a minimum of two lots, which comes to 1,600 shares.
As a result, the minimum investment amount for retail investors is ₹2,78,400, calculated at the upper end of the price band.
Due to the higher investment requirement, this IPO may be more suitable for investors with higher risk appetite and sufficient capital.
Grey Market Premium (GMP) Status
In the grey market, the Yajur Fibres IPO is currently trading at a premium of zero rupees. This indicates that there is no extra demand or enthusiasm for the IPO in the unofficial market at the moment.
According to reports from Investors Gain, the current GMP (Grey Market Premium) suggests that investors are not expecting a premium listing.
The zero GMP has raised concerns among some investors, as it generally reflects weak sentiment or uncertainty regarding the IPO’s listing performance.
Company Business and Operations
Yajur Fibres was founded in 1980 and has been operating in the natural fibre processing and manufacturing industry for several decades.
The company is involved in the processing and manufacturing of flax, jute, and hemp, which are widely used in textiles, packaging, and eco-friendly products.
At present, the company has a production capacity of 300 metric tons. Its manufacturing facility is located in Bengal, which is a well-known hub for jute and fibre-based industries.
Utilisation of IPO Proceeds
The company plans to use the funds raised through the IPO for multiple purposes. A major portion of the proceeds will be used to construct a new shed at its manufacturing unit in Bengal, which is expected to support operational expansion.
In addition, the company will invest in its subsidiaries, strengthen its working capital requirements, and allocate funds for general corporate purposes.
For this IPO, Horizon Management Private Limited has been appointed as the Book Running Lead Manager, while MAS Services will act as the Registrar to the issue.