Asston Pharmaceuticals IPO Opens July 9 with ₹27.56 Crore Issue at ₹123 Per Share for BSE SME Listing

Asston Pharmaceuticals Limited, a company specialising in pharmaceutical formulations and nutraceutical products, is launching its Initial Public Offering (IPO) worth ₹27.56 crore. This IPO is a book-built issue, consisting entirely of a fresh issue of 22.41 lakh equity shares.

The IPO opens for subscription on July 9, 2025, and closes on July 11, 2025. The allotment is expected on July 14, 2025, with listing planned on the BSE SME platform on July 16, 2025.

Key IPO Dates and Timeline

Here are the important dates for investors:

• Opening Date: July 9, 2025

• Closing Date: July 11, 2025

• Allotment Date: Expected Monday, July 14, 2025

• Listing Date: Tentatively Wednesday, July 16, 2025 on BSE SME

Investors should mark these dates to plan their applications and track allotment.

Price Band, Market Capitalisation, and Lot Size

The price band for the IPO is set between ₹115 to ₹123 per equity share. At the upper price band of ₹123, Asston Pharmaceuticals will have a market capitalisation of ₹104.70 crore.

Lot Size Details:

• 1 lot = 1,000 shares.

• Minimum Retail Investment: 2 lots (2,000 shares).

• Minimum Amount: ₹2,46,000.

This larger minimum investment aligns with SME IPO norms and typically attracts serious investors.

Anchor Investors and Pre-IPO Placement

Asston Pharmaceuticals has successfully raised ₹7.81 crore from Anchor Investors at ₹123 per share.

• Anchor Portion: 6,35,000 equity shares allocated.

• This indicates institutional confidence in the company’s growth story and valuation.

Lead Manager, Registrar, and Market Maker

• Book Running Lead Manager: Sobhagya Capital Options Private Limited

• Registrar: Maashitla Securities Private Limited

• Market Maker: JSK Securities and Services Private Limited

Their involvement ensures a transparent process, efficient allotment, and post-listing liquidity for retail investors.

Business Overview: Pharma and Nutraceutical Products for India and Africa

Asston Pharmaceuticals Limited is engaged in manufacturing and exporting a wide range of pharmaceutical formulations and nutraceutical products.

Operating under the “Asston” brand, the company’s product lineup includes:

• Tablets

• Capsules

• Oral Liquids

• External Preparations: Ointments, Creams, Gels, Lotions

• Oral Powders: Sachets, Dry Syrups

These products are marketed domestically and exported to various African markets, targeting healthcare needs in emerging markets.

Leadership and Promoter Experience

The company's operations are led by experienced promoters:

• Dr. Ashish Sakalkar

• Mrs. Saili More

• Mr. Sachin Badakh

They bring expertise in pharmaceutical formulations, market operations, and exports, essential for driving growth in competitive healthcare markets.

Financial Performance: Robust and Consistent Growth

Asston Pharmaceuticals has shown significant growth in its financials over recent years:

Revenue from Operations:

• FY23: ₹719.19 lakh

• FY24: ₹1,584.09 lakh

• FY25: ₹2,561.02 lakh

• Period ended May 31, 2025: ₹620.93 lakh (2-month period)

EBITDA:

• FY23: ₹217.05 lakh

• FY24: ₹280.06 lakh

• FY25: ₹673.03 lakh

• Period ended May 31, 2025: ₹194.90 lakh

Profit After Tax (PAT):

• FY23: ₹105.66 lakh

• FY24: ₹136.03 lakh

• FY25: ₹432.51 lakh

• Period ended May 31, 2025: ₹132.24 lakh

These figures demonstrate a clear upward trajectory in both revenues and profitability, supporting growth-driven valuation.

Objectives of the IPO

The net proceeds from the IPO will be used to:

• Expand manufacturing facilities

• Enhance marketing efforts for pharmaceutical and nutraceutical products

• Strengthen working capital

This focus ensures capacity building for domestic sales and exports, particularly to African markets where demand is growing.

Valuation Metrics and Industry Comparison

Based on FY24 earnings:

• Pre-Issue EPS: ₹6.9

• Post-Issue EPS: ₹5.08

• Pre-Issue P/E Ratio: 17.83x

• Post-Issue P/E Ratio: 24.21x

Annualised EPS: ₹9.32
Annualised P/E Ratio: 13.20x

Profitability Ratios:

• ROCE: 51.25%

• ROE: 50.56%

• RoNW: 40.36%

These metrics suggest the IPO is fully priced, balancing growth potential with sector risks. The high ROCE and ROE indicate efficient capital use and strong returns.

Grey Market Premium (GMP) and Investor Sentiment

As of the latest update, the Grey Market Premium (GMP) stands at ₹12 per share, implying an expected listing price of ₹135.

This suggests potential listing gains of around 9.75%.

However, investors should remember that GMP is an unofficial, unregulated indicator influenced by market speculation and may change before listing.

Live Subscription Status

The IPO opens for public subscription on July 9, 2025. Investors can track real-time subscription data on the BSE SME platform during the subscription window.

How to Check Allotment Status

Investors can check allotment status on or after July 14, 2025:

1. Go to the Registrar’s website (Maashitla Securities Private Limited).

2. Select Asston Pharmaceuticals Limited IPO from the list.

3. Enter Application Number, PAN, or DP Client ID.

4. Click Submit to view allotment details.

This transparent process ensures investors can easily verify their allocation.

Investment Strengths and Risks

Strengths:

• Diversified product portfolio catering to India and African markets.

• Strong revenue and PAT growth over 3 years.

• High ROCE and ROE, indicating efficient operations.

• Experienced promoter team with formulation and export expertise.

Risks:

• High minimum investment may deter small retail investors.

• Heavy exposure to African markets with currency and geopolitical risks.

• SME IPOs often face lower post-listing liquidity.

• GMP is volatile and cannot guarantee gains.

Conclusion: Recommendation for Investors

Given the company’s robust growth, sectoral demand, strong profitability, and reasonable GMP, analysts recommend “Risky Investors to Apply” for listing gains.

However, investors should carefully consider their risk appetite, as SME IPOs involve higher volatility, lower liquidity, and market fluctuations. Long-term investment decisions should rely on operational growth and market expansion post-listing.

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 NSDL, Spunweb Nonwoven, Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control,  Anthem Biosciences.

The Current active IPO are Glen Industries, Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech.

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