Asston Pharmaceuticals IPO Opens at ₹123 With ₹12 GMP as Company Eyes Healthcare Export Growth

Asston Pharmaceuticals Limited, a healthcare manufacturer and exporter operating under the brand “Asston”, has launched its ₹27.56 crore Book Built IPO on BSE SME. The company focuses on pharmaceutical formulations and nutraceuticals, with a growing presence in African and domestic markets.

The IPO comprises a fresh issue of 22.41 lakh equity shares, aimed at funding machinery acquisition, working capital needs, and debt reduction.

IPO Details at a Glance

• Issue Size: ₹27.56 Crores (Fresh Issue only)

• Price Band: ₹115 to ₹123 per share

• Market Capitalisation at Upper Price Band: ₹104.70 Crores

• Lot Size: 1,000 shares

• Minimum Investment: ₹2,46,000 (2 lots or 2,000 shares)

• IPO Opens: 09 July 2025

• IPO Closes: 11 July 2025

• Allotment Date: 14 July 2025

• Tentative Listing Date: 16 July 2025

• Exchange: BSE SME

Sobhagya Capital Options Pvt Ltd is the Book Running Lead Manager, while Maashitla Securities Pvt Ltd is the Registrar and JSK Securities and Services Pvt Ltd acts as Market Maker.

Grey Market Premium: ₹12 Indicates 9.75% Potential Gain

As per the latest Grey Market Premium (GMP) updates on 04 July 2025, the IPO is trading at a premium of ₹12 per share. With an issue price of ₹123, this reflects an expected listing price of ₹135, indicating a potential 9.75% gain.

Please note:

• GMP is informal and unregulated

• Market-based and influenced by demand-supply dynamics

• GMP should not be the sole investment decision factor

Strong Subscription Interest Early On

As of 11:00 AM on 10 July 2025, the IPO received an impressive 3.91x overall subscription on the second day of the bidding period.

This shows strong investor appetite, especially from those looking to gain exposure in the pharma exports sector through a relatively small-cap opportunity.

Use of IPO Proceeds: Focus on Machinery, Capital and Debt

Asston Pharmaceuticals plans to utilise the IPO proceeds as follows:

1. ₹6.30 Crores for capital expenditure to acquire new manufacturing machinery.

2. ₹13.00 Crores for incremental working capital requirements.

3. ₹1.00 Crore for repayment/prepayment of borrowings.

4. Remaining funds for general corporate purposes.

These allocations suggest a clear growth trajectory backed by expanded manufacturing and improved liquidity.

Business Model and Sectoral Focus

Asston Pharmaceuticals is involved in manufacturing and marketing of:

• Pharmaceutical formulations: Tablets, Capsules, Oral Liquids, Dry Syrups

• Nutraceutical products

• External preparations: Creams, Gels, Lotions

• Sachets and Powders

African markets are a key focus area alongside India. The company uses a B2B and B2C approach and operates under its proprietary brand "Asston."

Promoter Background and Operational Strength

The company is promoted by:

• Dr. Ashish Sakalkar

• Mrs. Saili More

• Mr. Sachin Badakh

Together, they bring in-depth experience in formulation R&D, market operations, and pharmaceutical exports.

With a team strength of 50+ professionals, the company is strategically poised to tap into underserved international healthcare markets.

Consistent Financial Growth: FY23 to FY25

Revenue from Operations:

• FY23: ₹7.19 Crores

• FY24: ₹15.84 Crores

• FY25: ₹25.61 Crores

• May 2025 (2 months): ₹6.20 Crores

EBITDA:

• FY23: ₹2.17 Crores

• FY24: ₹2.80 Crores

• FY25: ₹6.73 Crores

• May 2025: ₹1.95 Crores

Profit After Tax (PAT):

• FY23: ₹1.05 Crores

• FY24: ₹1.36 Crores

• FY25: ₹4.32 Crores

• May 2025: ₹1.32 Crores

The sharp jump in profitability in FY25 reflects:

• Economies of scale

• Export margin efficiencies

• Brand equity in overseas markets

Valuation Metrics and Financial Ratios

• Pre-issue EPS (FY24): ₹6.9

• Post-issue EPS (FY24): ₹5.08

• Pre-issue P/E Ratio: 17.83x

• Post-issue P/E Ratio: 24.21x

• Annualised EPS: ₹9.32

• Annualised P/E: 13.20x

• Industry Average P/E: 28–32x

Profitability Ratios:

• ROCE (FY24): 51.25%

• ROE (FY24): 50.56%

• RoNW: 40.36%

Despite being fairly priced, these profitability ratios are among the best in SME IPOs, driven by export margins and tight operational controls.

IPO Allotment Guide: How to Check Status

Allotment results will be available on 14 July 2025. Here’s how to check:

1. Visit Maashitla Securities IPO Allotment Portal

2. Select Asston Pharmaceuticals IPO

3. Enter PAN / Application Number / DP ID-Client ID

4. Click Submit to view your status

Strengths, Opportunities and Risks

Strengths:

• Strong YoY growth in revenue and profits

• Promoter expertise in pharma export markets

• High return metrics (ROCE/ROE)

• Capacity expansion via new machinery

Opportunities:

• Growing demand for Indian generics and nutraceuticals globally

• Government pharma export incentives

• Market penetration in underserved African regions

Risks:

• High minimum investment may deter retail participation

• Dependence on exports makes FX fluctuations a concern

• SME listing implies limited post-listing liquidity

• GMP does not guarantee listing price

Final Verdict: Should You Invest?

The IPO is seeing good retail and anchor investor traction, and the company has shown strong financial momentum with premium return ratios.

Valuation is on the higher side (post-issue P/E 24.21x) but looks reasonable given growth visibility and current listing sentiment.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Monika Alcobev, NSDL, Anthem Biosciences, Spunweb Nonwoven.

The Current active IPO are Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control, Glen Industries.

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