Neetu Yoshi, a safety parts manufacturing company for Railways, plans to raise ₹77 crore through initial public offering on Friday and the shares will be listed on the BSE SME platform.

The company will issue fresh equity of 1.03 crore equity shares at a face value of ₹ 5 each in the price band of ₹71 - ₹75 a share.

The net proceeds from the IPO will be used for setting up of new manufacturing facility and for general corporate purposes.

The book running lead manager to the issue is Horizon Management and the Registrar to the issue is Skyline Financial Services.

Himanshu Lohia, Managing Director and CFO, Neetu Yoshi said the company is RDSO-certified Class A vendor, supplying over 25 essential railway spares including braking systems, suspensions, propulsion aids and coupling attachments besides working on to get approval for 15 more parts.

The company intends to invest ₹60 crore in setting up a new plant which will increase its capacity to 130,000 tonnes per annum from 8,067 tonnes, he said.

“We have already procured 15,000 sq.mt. of land worth ₹2.5 crore for the new manufacturing plant,” he added.

The debt-free company has an order book of ₹105 crore to be executed in this fiscal. It procures the raw material from the scrap auctioned specially for equipment manufacturers.

The IPO will support the development of a new advanced manufacturing facility, help expand capabilities for producing complete bogies and couplers for high-speed trains, he said.

Manav Goenka, President, Horizon Management said with the Indian railway sector undergoing rapid expansion and modernization, there is a growing demand for reliable, locally manufactured components.

Neetu Yoshi’s planned investment in advanced manufacturing infrastructure is a timely move that aligns with the industry’s evolving needs, he added.

Published on June 23, 2025