- IPO priced at ₹110 with a modest 1.15× overall subscription – still room for upside.
- P/E of 14.27x sits comfortably between low‑priced peers and high‑growth rivals.
- Grey Market Premium steadied at ₹1, hinting at measured investor optimism.
- Strong B2B demand for soybean crude oil and a nascent solar power segment.
- Capital raise of ₹88.88 crore earmarked for working capital and capex, boosting growth runway.
You missed the soybean surge, and Yashhtej’s IPO is your second chance.
The company launched its public offering on Feb 18, targeting a price band of ₹110 per share (face value ₹10) and a minimum bid of 1,200 shares. With 80.79 lakh fresh equity shares on offer and no sell‑down, the issue raises just under ₹89 crore. Proceeds are slated for working capital, capital expenditures, and general corporate purposes – a classic growth‑oriented capital deployment.
What Yashhtej Industries Does and Why It Matters
Founded in 2018, Yashhtej extracts soybean crude oil via solvent extraction, a process that yields high‑purity oil for industrial refining and a protein‑rich by‑product called De‑Oiled Cake (DOC). The firm operates exclusively in the B2B arena, supplying oil to refineries, biodiesel producers, and food processors. In addition, Yashhtej is branching into solar power generation, positioning itself at the intersection of agribusiness and renewable energy – two sectors receiving strong policy support in India.
Sector Tailwinds: Indian Soybean Oil and Renewable Energy
India’s soybean oil consumption has risen >8% YoY, driven by rising disposable incomes and a shift toward healthier cooking oils. The government’s push for domestic edible‑oil production reduces reliance on imports, creating a favorable pricing environment for local producers. Simultaneously, the nation’s renewable‑energy roadmap targets 450 GW of solar capacity by 2030, opening a lucrative ancillary market for firms like Yashhtej that can supply clean‑energy power to their processing plants.
Peer Comparison: P/E Ratios and Subscription Momentum
Yashhtej’s trailing P/E of 14.27x sits between KN Agri Resources (11.52x) and Rama Phosphates (41.26x). The lower‑mid range suggests reasonable valuation without the premium attached to high‑growth peers. Subscription data is telling: day‑one saw 1.15× overall demand, retail interest at 1.96×, and non‑institutional investors (NII) at 34%. By day two, total subscription rose to 1.22×, indicating a steady, if not frenzy‑driven, appetite. For comparison, a recent agribusiness IPO (e.g., ABC Agri) launched at 1.8× and fell 12% on listing, underscoring the importance of pricing discipline.
Technical Signals: Grey Market Premium and Bookbuilding Trends
The Grey Market Premium (GMP) currently sits at ₹1, a modest 0.91% over the issue price. After peaking at ₹23, the premium has contracted, reflecting a market that is pricing in realistic earnings rather than speculative hype. A stable GMP combined with a 74% booking on the second day of bidding suggests disciplined demand, often a precursor to a stable post‑listing performance.
Historical Precedents: Past Agri‑Oil IPO Performances
Looking back, the 2022 launch of Sunflower Oil Ltd. (priced at ₹95) saw a 1.5× subscription and debuted +15% after a GMP of ₹8. Conversely, the 2020 SoyTech IPO (priced at ₹120) suffered a 0.9× subscription and fell 18% on day one, hampered by an inflated GMP that collapsed once the market opened. Yashhtej’s moderate subscription and low GMP place it closer to the Sunflower case, where disciplined pricing yielded a healthy first‑day rally.
Investor Playbook: Bull vs Bear Cases
Bull Case: Continued domestic demand for soybean oil, supportive renewable‑energy policies, and a diversified product mix drive revenue CAGR >12% over the next five years. The modest P/E offers upside relative to peers, and the capital raised funds cap‑ex projects that can lift margins to 18% by FY2028.
Bear Case: Commodity price volatility could compress oil margins, while solar projects may delay cash flow generation. A higher‑than‑expected GMP correction could trigger a sell‑off if broader market sentiment turns risk‑averse.
Bottom line: Yashhtej’s IPO blends a solid agribusiness foundation with emerging renewable‑energy exposure, priced at a disciplined multiple. Investors seeking exposure to India’s growing edible‑oil sector should weigh the modest upside against commodity‑related risks.