Astonea Labs Limited specialises in the manufacturing and marketing of a wide variety of pharmaceutical and cosmetic products. Its product portfolio includes antibiotic drugs, anti-cold medications, antihistamines, diabetes and cardiovascular drugs, gynecological medicines, analgesics, antifungal drugs, and multivitamins. The company also offers skin, tooth, and hair care products in various forms such as gels, ointments, creams, lotions, oils, and serums.

The company is launching an Initial Public Offering (IPO) as a Book Built Issue amounting to ₹ 37.66 crore, consisting entirely of a fresh issue of 27.90 lakh equity shares. The subscription window opens on May 27, 2025, and closes on May 29, 2025. The allotment of shares is expected on or about May 30, 2025, with shares to be listed on the BSE SME platform tentatively on June 3, 2025.

The IPO price band is fixed between ₹ 128 and ₹ 135 per equity share. At the upper price band of ₹ 135, the company's market capitalisation will be approximately ₹ 141.89 crore post-IPO. The lot size is 1000 shares, requiring a minimum retail investor commitment of ₹ 1,35,000. High Net Worth Individuals (HNIs) must invest in multiples of 2 lots (2000 shares), amounting to ₹ 2,70,000 minimum.

ONEVIEW CORPORATE ADVISORS PRIVATE LIMITED acts as the book running lead manager for the IPO, while KFin Technologies Limited is the registrar. Basan Equity Broking Limited is the Market Maker for the issue.

Financial Performance and Growth

Astonea Labs has demonstrated steady growth in financial performance over recent years. Revenues from operations were ₹ 3,017.46 lakh in 2022, which increased to ₹ 6,725.86 lakh in 2023, ₹ 8,028.85 lakh in 2024, and ₹ 6,968.86 lakh for the nine months ended December 31, 2024. EBITDA has also improved from ₹ 586.87 lakh in 2022 to ₹ 733.62 lakh in 2023, ₹ 1,203.89 lakh in 2024, and ₹ 1,146.66 lakh for the nine months ended December 2024. The profit after tax rose steadily from ₹ 24.88 lakh in 2022 to ₹ 66.52 lakh in 2023, ₹ 380.98 lakh in 2024, and ₹ 410.30 lakh for the nine months ended December 2024.

Key financial ratios show a pre-issue Earnings Per Share (EPS) of ₹ 5.01 and a post-issue EPS of ₹ 3.62 for FY24. The pre-issue Price to Earnings (P/E) ratio is 26.95 times, and the post-issue P/E rises to 37.25 times, both lower than the industry P/E of 49. The company has a strong Return on Capital Employed (ROCE) of 22.95%, Return on Equity (ROE) of 37.86%, and Return on Net Worth (RoNW) of 31.83% for FY24. The annualised EPS based on latest data is ₹ 7.09, with a P/E ratio of 19.03 times, indicating the IPO is fairly priced.

Grey Market Premium and Listing Outlook

The Grey Market Premium (GMP) is currently zero, suggesting no expected listing gains based on current demand and supply. Grey Market Premium reflects unregulated trading and should be viewed only for informational purposes.

Considering the company’s consistent financial growth, strong profitability ratios, and reasonable valuation compared to industry peers, investors may assess the IPO carefully. However, the absence of expected listing gains means the IPO may be more suitable for long-term investment rather than quick profits.

About the Promoter

Mr. Ashish Gulati is the Promoter and Managing Director of Astonea Labs Limited, bringing over 6 years of experience in the pharmaceutical and cosmetics industry. The promoter and senior management team have driven the company’s growth and continue to provide strategic guidance and oversight.

For further details, contact
ONEVIEW CORPORATE ADVISORS PRIVATE LIMITED (Book Running Lead Manager)
KFin Technologies Limited (Registrar)
Basan Equity Broking Limited (Market Maker)

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