Asston Pharmaceuticals, a company engaged in the manufacturing and export of pharmaceutical formulations and nutraceutical products, has launched its Initial Public Offering (IPO) via the Book Built Issue route, with a total issue size of ₹27.56 Crores. This IPO consists entirely of a fresh issue of 22.41 lakh equity shares. The IPO opened for subscription on July 9, 2025, and concluded on July 11, 2025.

The company operates under the brand name “Asston” and is involved in the production and marketing of tablets, capsules, oral liquids, ointments, creams, gels, lotions, and oral powders such as sachets and dry syrups. These products are sold both in the domestic market and exported to various African countries.

The IPO price band has been fixed at ₹115 to ₹123 per share. The market capitalization of the company at the upper price band of ₹123 per equity share will be ₹104.70 Crores. The lot size for investors is 1,000 shares, and the minimum investment amount for retail investors is ₹2,46,000 (i.e., 2 lots).

The book running lead manager for the IPO is Sobhagya Capital Options Private Limited, and the registrar is Maashitla Securities Private Limited. JSK Securities and Services Private Limited will act as the Market Maker for this IPO.

Strong Market Demand

As of 12:00 PM on July 11, 2025, the live subscription status shows that the IPO was subscribed 38.28 times, demonstrating robust investor interest. This includes participation from retail individual investors (RIIs), non-institutional investors (NIIs), and qualified institutional buyers (QIBs).

In the Anchor Investors segment, the company raised ₹7.81 Crores by allocating 6,35,000 shares at ₹123 per share. Anchor investments were made just prior to the public issue, indicating strong institutional backing.

Grey Market Premium (GMP) Insights

The Grey Market Premium (GMP) for Asston Pharmaceuticals IPO stands at ₹22, suggesting a potential listing price of ₹145, i.e., a listing gain of approximately 17.88%. It is important to note that GMP is unofficial, unregulated, and purely speculative. It is used only for informational and educational purposes and should not be the basis of investment decisions.

Financial Performance and Valuation

The financial data shows a consistent growth trajectory:

• Revenue from operations:

  • ₹620.93 Lakh (Period ending May 31, 2025)

  • ₹2,561.02 Lakh (FY 2025)

  • ₹1,584.09 Lakh (FY 2024)

  • ₹719.19 Lakh (FY 2023)

• EBITDA:

  • ₹194.90 Lakh (May 31, 2025)

  • ₹673.03 Lakh (FY 2025)

  • ₹280.06 Lakh (FY 2024)

  • ₹217.05 Lakh (FY 2023)

• Profit After Tax (PAT):

  • ₹132.24 Lakh (May 2025)

  • ₹432.51 Lakh (FY 2025)

  • ₹136.03 Lakh (FY 2024)

  • ₹105.66 Lakh (FY 2023)

The company has achieved significant improvement in profitability, supported by a focused business strategy and growing demand in African markets.

• Pre-Issue EPS (FY24): ₹6.9

• Post-Issue EPS (FY24): ₹5.08

• Annualised EPS: ₹9.32

• Pre-Issue P/E: 17.83x

• Post-Issue P/E: 24.21x

• Annualised P/E: 13.20x

• ROCE (FY24): 51.25%

• ROE (FY24): 50.56%

• RoNW: 40.36%

These valuation metrics indicate that the IPO is fully priced and may offer value only to investors looking for short-term listing gains.

Objectives of the Issue

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹630.0 Lakhs for capital expenditure to acquire machinery for the manufacturing unit

2. ₹1,300.00 Lakhs for incremental working capital requirements

3. ₹100.00 Lakhs for repayment/prepayment of existing borrowings

4. Balance for general corporate purposes

IPO Allotment and Listing

The allotment date for the IPO is scheduled for Monday, July 14, 2025, and shares are expected to be listed on the BSE SME platform by Wednesday, July 16, 2025.

How to Check IPO Allotment Status:

• Go to the IPO allotment status page on the Registrar’s website

• Select Asston Pharmaceuticals Limited IPO

• Enter your PAN/Application Number/DP Client ID

• Submit the form to view your allotment result

Conclusion

Asston Pharmaceuticals IPO has received strong investor interest, as reflected in the 38.28x subscription rate. The GMP suggests a healthy 17.88% listing gain, making it potentially attractive for risk-tolerant investors seeking short-term returns. However, with the post-issue P/E at 24.21x, the IPO appears fully valued, and long-term investors should assess the business risks before making any decision.

The growth in revenue, profitability, and operational scale, coupled with increasing market demand in the pharmaceutical and nutraceutical sectors, offers a solid foundation for future expansion. Still, prospective investors must remain cautious, especially considering the sizeable working capital requirements and the relatively small scale of current operations compared to large pharma players.

Given the financial growth, high return ratios, and market sentiment, the IPO might perform well on listing, but long-term returns would depend on consistent performance, scalability, and competitive dynamics in the pharmaceutical industry.

Disclaimer: This article is intended purely for informational and educational purposes. It should not be construed as financial or investment advice. Investors must consult a qualified financial advisor and do their own due diligence before making investment decisions. The information provided here is based on publicly available sources and market data as of the publication date and is subject to change.

The Upcoming IPOs in this week and coming weeks are Savy Infra, Monika Alcobev, NSDL.

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