YAJUR FIBRES LIMITED IPO Explain

Yajur Fibres IPO Overview

Howrah (West Bengal)-based cottonised bast fibre processor and yarn manufacturer raising ₹120.41 cr (100% fresh issue, no OFS). Price: ₹168-174. Lot: 800 shares (₹2,78,400 min investment for 1,600 shares / 2 lots). GMP: Flat at ₹174 (upper band) as of Jan 2026.

Funds for capacity expansion (₹11.92 cr – 50,000 sq ft shed + 4 tons/day additional capacity at Howrah facility), subsidiary investment (₹48 cr – Yashodha Linen Yarn greenfield wet-spun linen yarn unit at Ujjain, MP), working capital (₹36 cr), general corporate purposes.

Lead: Horizon Management.

Registrar: MAS Services.

Founded 1980 (incorporated as Shineup Investments; renamed Shineup Fibres 1991, Ambica Capital Ventures 2008, Yajur Fibres 2021). Part of 145-year-old Kankaria Group with legacy in jute/fibre industry. 409 employees (as of November 30, 2025).

Products: Cottonised bast fibres (flax/linen, jute, hemp) – transforms long, rigid bast fibres into shorter staples blending up to 55% with cotton/synthetic for normal spinning mills. Manufacturing capacity: 300+ MT/month of cottonised fibers, flax yarn, jute yarn. State-of-the-art facility: 19 acres with 500-meter Ganges River frontage at Jagannathpur, Howrah (West Bengal’s jute belt).

Services spinning mills in India and Bangladesh. Proprietary cottonisation technology enabling textile mills to adopt sustainable fibres without modifying existing manufacturing setup and processes.

Subsidiary Yashodha Linen Yarn Limited: Setting up greenfield unit for 100% wet-spun linen yarn and blended yarn at DMIC Industrial Park, Ujjain, MP.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	SME (BSE SME)
IPO Open Date	07 January 2026 (Tuesday)
IPO Close Date	09 January 2026 (Thursday)
Anchor Investor Bidding	Data not specified
Allotment Date	12 January 2026 (Sunday) – Expected
Credit to Demat	13 January 2026 (Monday) – Expected
Refund Initiation	Data not specified
Listing Date	14 January 2026 (Tuesday) – Tentative
Price Band	₹168 – ₹174 per share
Face Value	₹10 per share
Lot Size	800 shares (minimum lot)
Min Investment (Retail)	₹2,78,400 (1,600 shares / 2 lots at upper band ₹174)
sNII Investment	Data not specified
bNII Investment	Data not specified
Issue Size	₹120.41 crore total (some sources: ₹114.38 cr – data variance)
Fresh Issue	₹120.41 crore (100%) – 69,20,000 shares
Offer for Sale (OFS)	NIL – No OFS component
Total Shares Offered	69,20,000 equity shares (6.92 million shares)
Listing	BSE SME
Post-Issue Market Cap	Data not fully disclosed in available sources

Note: Issue size shows variance (₹120.41 cr vs. ₹114.38 cr across sources) – data inconsistency.

Issue Break-up

Category	Allocation
QIB (Qualified Institutional Buyers)	0.95% / 1% (65,600 shares – very small!)
NII (Non-Institutional Investors)	28.21% / 29.69% (19,52,000 shares)
Retail Individual Investors	65.84% / 69.31% (45,56,000 shares – dominant)

Note: QIB allocation extremely low (0.95-1%) – unusual structure for SME IPO.

Selling Shareholders (OFS ₹0 crore)

No OFS Component – 100% Fresh Issue

Note: This is a 100% fresh issue IPO with no Offer for Sale. All proceeds go directly to the company for business purposes. Promoters are not exiting.

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹120.41 crore) will be used for:

Capacity Expansion at Existing Howrah Facility – ₹11.92 crore (9.9%)
- Setting up 50,000 sq ft shed at existing manufacturing unit
- Installation of additional production capacity of 4 tons per day
- Location: Jagannathpur, Phuleshwar, Uluberia, Howrah District
- Enhancing cottonised fibre output to meet anticipated demand
Investment in Subsidiary Yashodha Linen Yarn Limited – ₹48.00 crore (39.9%)
- Setting up greenfield unit at Vikram Udyogpuri, DMIC Industrial Park, Ujjain, Madhya Pradesh
- 100% wet-spun linen yarn and blended yarn manufacturing
- Forward integration into value-added yarn production
- Strategic expansion beyond cottonised fibres into finished yarn
Working Capital Requirements – ₹36.00 crore (29.9%)
- Day-to-day operational expenses
- Inventory management (raw materials, finished goods)
- Managing receivables from spinning mills
- Project execution funding for subsidiary unit
General Corporate Purposes – Balance Amount (₹24.49 crore, 20.3%)
- Strategic initiatives
- Offer-related expenses
- Contingency requirements

Strategic Focus:

MD Ashish Kankaria: “Strengthen core operations through capacity expansion at Howrah to meet anticipated demand, enhance operational efficiency, and enable development of greenfield wet-spun linen yarn unit through subsidiary”
Forward integration: Moving from cottonised fibre (raw material) to finished yarn (higher value-add)
Geographic expansion: Ujjain (MP) greenfield unit expanding beyond West Bengal base
Capacity doubling: 4 tons/day additional capacity at Howrah
Capitalizing on sustainable textile boom

OFS Proceeds:

NIL – No promoter exit

Note: 100% fresh issue with 40% for subsidiary greenfield unit indicates aggressive expansion strategy. Working capital (30%) and capex (50% total) dominate allocation.

Lead Managers & Registrar

Book Running Lead Manager (BRLM):

Horizon Management Private Limited

Promoters & Management

Key Promoters (4 Promoters – Kankaria Family + Corporate):

Individual Promoters:

Mr. Ashish Kankaria – Promoter & Managing Director
- Key leadership driving Yajur Fibres and subsidiary expansion
- Part of 145-year-old Kankaria Group legacy
Mrs. Shruti A. Kankaria – Promoter
- Co-promoter, family member

Corporate Promoters:

Ambica Capital Markets Limited – Corporate Promoter
- Corporate entity associated with Kankaria Group
Gold View Financial Services Limited – Corporate Promoter
- Corporate entity associated with promoter group

Promoter Holding:

Pre-IPO: Data not fully disclosed
Post-IPO: Data not fully disclosed

Company History:

Kankaria Group Legacy: 145+ years in jute and fibre industry (since ~1880)
Incorporated: August 7, 1980 as Shineup Investments Limited (public limited)
Certificate of Commencement: September 15, 1980
Name Changes:
- 1980-1991: Shineup Investments Limited
- 1991-2008: Shineup Fibres Limited (June 18, 1991)
- 2008-2021: Ambica Capital Ventures Limited (April 24, 2008)
- 2021-Present: Yajur Fibres Limited (March 11, 2021)
Operations: 45+ years as corporate entity (1980-2026); recent focus on bast fibre cottonisation
Evolution:
- 1980: Incorporated under Kankaria Group
- 1991: Renamed Shineup Fibres – textile/fibre focus
- 2000s: Developed proprietary cottonisation technology for bast fibres
- 2008: Became Ambica Capital Ventures (diversification phase?)
- 2021: Rebranded as Yajur Fibres – focused bast fibre specialist
- Built 300+ MT/month capacity at 19-acre Howrah facility
- Established subsidiary Yashodha Linen Yarn for forward integration
- FY24-25: Explosive 67% revenue growth (₹84.31 cr to ₹140.80 cr), 135% EBITDA growth
Workforce: 409 employees (November 30, 2025)
Milestone:
- Revenue ₹140.80 cr (FY25), PAT ₹11.68 cr (FY25) – per some sources
- 67% revenue, 135% EBITDA growth (FY24-25)
- 300+ MT/month capacity
- 145-year Kankaria Group legacy

Company Contact:

Registered Office: 5, Middleton Street, Kolkata, West Bengal – 700071, India
Phone: +91 33 2283 5028
Website: www.yajurfibres.com

COMPANY DETAIL

Establishment & Background:

Kankaria Group Legacy: 145+ years in jute/fibre (since ~1880)
Incorporated: August 1980 (45+ years as company); Rebranded Yajur Fibres: March 2021
Industry: Textile – Cottonised Bast Fibre Processing & Yarn Manufacturing
Headquarters: Kolkata/Howrah, West Bengal
Positioning: Specialized bast fibre cottoniser backed by 145-year Kankaria Group legacy; transforming sustainable fibres (flax, jute, hemp) for modern textile industry

Business Model:

Product Portfolio – Cottonised Bast Fibres & Yarns:

1. Cottonised Bast Fibres (Core Business):

Flax (Linen) Fibre: Premium quality cottonised flax
Jute Fibre: Cottonised jute for textile applications
Hemp Fibre: Cottonised hemp for blended fabrics
Process: Transforms long, rigid bast fibres into short, cotton-like staples
Blending: Can be blended up to 55% with cotton or synthetic fibres
Usage: Compatible with normal spinning machines without modification
Capacity: 300+ MT/month of cottonised fibres

2. Yarns (Current & Expansion):

Flax Yarn: Currently manufactured at Howrah
Jute Yarn: Currently manufactured at Howrah
Wet-Spun Linen Yarn (Planned): 100% wet-spun linen yarn and blended yarn via subsidiary Yashodha Linen Yarn at Ujjain greenfield unit

Proprietary Technology:

Cottonisation process converting bast fibres into cotton-like staples
R&D-driven innovation enabling sustainable fibre adoption
Technology allows textile mills to use eco-friendly bast fibres without modifying existing equipment

Manufacturing Infrastructure:

Howrah Facility (Existing):
- Location: 19 acres with 500-meter Ganges River frontage at Jagannathpur, Phuleshwar, Uluberia, Howrah District (West Bengal’s jute belt)
- State-of-the-art production facility
- Capacity: 300+ MT/month
- IPO-Funded Expansion: 50,000 sq ft additional shed + 4 tons/day capacity
Ujjain Facility (Planned via Subsidiary):
- Location: Vikram Udyogpuri, DMIC Industrial Park, Ujjain, Madhya Pradesh
- Greenfield unit for 100% wet-spun linen yarn and blended yarn
- Investment: ₹48 cr from IPO proceeds
- Forward integration into finished yarn

Customer Base:

Spinning Mills: Leading spinning mills in India and Bangladesh
Weaving Mills: Textile manufacturers requiring blended yarns
Export Markets: International buyers (Bangladesh mentioned)
Target: Mills seeking sustainable, eco-friendly fibre alternatives

Revenue Model:

Sales of cottonised bast fibres to spinning/weaving mills
Yarn sales (flax yarn, jute yarn currently; linen yarn post-subsidiary setup)
Premium pricing for sustainable, eco-friendly materials
B2B model serving textile industry

Value Proposition:

145-Year Legacy: Kankaria Group’s century-plus expertise in jute/fibre industry
Sustainability: Eco-friendly bast fibres (flax, jute, hemp) vs. synthetic/cotton
Innovation: Proprietary cottonisation technology transforming rigid bast into spinnable staples
Drop-In Solution: Mills use bast fibres without equipment modification
Blending Capability: Up to 55% bast fibre blending with cotton/synthetics
Strategic Location: Howrah facility in West Bengal’s jute belt; Ujjain facility accessing Central India markets
Forward Integration: Moving from fibre processing to finished yarn (higher value-add)

Market Position:

45+ years as corporate entity (1980-2026); 145+ year group legacy
409 employees (Nov 2025)
300+ MT/month cottonised fibre capacity
Leading supplier to spinning/weaving mills in India and Bangladesh

Operations

Service Delivery:

Headquarters: Kolkata, West Bengal
Manufacturing: Howrah, West Bengal (existing); Ujjain, MP (planned subsidiary)
Markets: India (primary), Bangladesh (export)

Company Strengths

Explosive Financial Performance – 67% Revenue, 174% PAT Growth (FY24-25):
- Revenue surged 67% from ₹84.31 cr (FY24) to ₹140.80 cr (FY25)
- PAT nearly tripled – 174% growth from ₹4.27 cr to ₹11.68 cr
- EBITDA more than doubled – 135% growth from ₹8.01 cr to ₹18.85 cr
145-Year Legacy – Kankaria Group’s Century-Plus Expertise:
- Backed by 145-year-old Kankaria Group with deep jute/fibre industry roots
- Multi-generational trust and relationships in textile sector
- Established brand credibility and supplier network
Sustainable Textiles Boom – Eco-Friendly Bast Fibres Gaining Traction:
- Global shift toward sustainable, biodegradable textiles driving bast fibre demand
- Flax (linen), jute, hemp are eco-friendly alternatives to cotton/synthetics
- Lower water usage, pesticide-free cultivation vs. cotton
- Circular economy and ESG compliance boosting adoption
Proprietary Cottonisation Technology – Drop-In Solution for Mills:
- Proprietary technology converting rigid bast fibres into cotton-like spinnable staples
- Enables blending up to 55% bast with cotton/synthetics
- Mills use existing spinning machines without modification – key competitive advantage
- R&D-driven innovation creating differentiation
Forward Integration – Subsidiary for Value-Added Linen Yarn:
- ₹48 cr investment in Yashodha Linen Yarn subsidiary for wet-spun linen yarn
- Moving up value chain from fibre processing to finished yarn (higher margins)
- Ujjain greenfield unit accessing Central India markets
- Diversifying beyond commodity cottonised fibres
Strategic Location – Howrah Jute Belt + Ganges River Access:
- 19-acre facility with 500-meter Ganges River frontage in West Bengal’s jute belt
- Proximity to raw material sources (jute, flax cultivation regions)
- Logistical advantage for riverine transport
- Ujjain (MP) facility diversifying geographic risk and accessing Central/Western India

Key Risks & Challenges

Limited Operating History as “Yajur Fibres” – Only 5 Years (Since 2021):
- Renamed Yajur Fibres only in March 2021 – just 5 years of focused identity
- Multiple name changes (Shineup 1980, Ambica 2008, Yajur 2021) raise continuity questions
- Recent explosive growth (67% FY24-25) sustainability unproven over long term
Intense Competition – Commodity Bast Fibre Market, Large Players:
- Competes with established jute/fibre processors in West Bengal
- Commodity nature of cottonised fibres limiting differentiation
- Larger textile conglomerates with vertical integration
- Price-based competition pressuring margins
Single Geographic Concentration – 100% Manufacturing in West Bengal:
- Entire existing manufacturing concentrated in Howrah, West Bengal
- Regional risks: labor issues, political instability, natural disasters (cyclones, floods)
- No manufacturing diversification currently (Ujjain subsidiary under development)
- Exposure to West Bengal’s business environment
Subsidiary Execution Risk – ₹48 Cr Greenfield Project Unproven:
- ₹48 cr (40% of IPO) allocated to untested subsidiary greenfield project
- Yashodha Linen Yarn has no operating history – start-up risk
- Wet-spun linen yarn is different technology from cottonised fibre – capability gap?
- Project delays, cost overruns, market acceptance risks
Raw Material Availability & Price Volatility – Flax, Jute, Hemp Dependency:
- Business depends on consistent supply of flax, jute, hemp bast fibres
- Agricultural commodity price volatility (weather, crop yields, global demand)
- Supplier concentration risk if sourcing from limited farmers/traders
- Limited pricing power to pass on cost increases to spinning mills
Unusual IPO Structure – Only 1% QIB Allocation, 69% Retail:
- QIB allocation just 0.95-1% – extremely low institutional investor interest
- Retail dominates at 65.84-69.31% – red flag for quality/valuation concerns?
- Typically, strong SME IPOs have higher institutional participation
- GMP flat at upper band (₹174) – no grey market premium suggests lukewarm demand

Disclaimer

This information is based on publicly available sources. Investors should conduct their own research and consult financial advisors before investing.

The company reported explosive growth (FY25: 67% revenue growth to ₹140.80 cr, 174% PAT growth to ₹11.68 cr, 135% EBITDA growth to ₹18.85 cr) as 45-year-old entity (incorporated 1980, renamed Yajur Fibres 2021) backed by 145-year Kankaria Group legacy, specializes in cottonising bast fibres (flax/linen, jute, hemp) into cotton-like staples blendable up to 55% with cotton/synthetics via proprietary technology, serves spinning/weaving mills in India and Bangladesh with 300+ MT/month capacity from 19-acre Howrah facility (500m Ganges frontage), plans forward integration via subsidiary Yashodha Linen Yarn (₹48 cr greenfield wet-spun linen yarn unit at Ujjain, MP), benefiting from sustainable textile boom and eco-friendly fibre demand, but faces significant risks including limited 5-year operating history as “Yajur Fibres” (multiple name changes: Shineup 1980, Ambica 2008, Yajur 2021 raising continuity concerns), intense competition in commodity bast fibre market, 100% manufacturing concentration in West Bengal Howrah exposing to regional risks, subsidiary execution risk (₹48 cr untested greenfield project with no operating history), raw material availability and price volatility (flax, jute, hemp agricultural commodities), and unusual IPO structure with only 1% QIB allocation vs. 69% retail suggesting weak institutional interest and GMP flat at upper band ₹174 indicating lukewarm demand. SME listing on BSE.