Astonea Labs Limited specializes in the manufacturing and marketing of a wide range of pharmaceutical and cosmetic products. Their portfolio includes antibiotic drugs, anti-cold medications, antihistamines, diabetes drugs, cardiovascular drugs, gynecological medicines, analgesics, antifungal drugs, and multivitamins. In addition, the company 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) through a book-built issue comprising entirely a fresh issue of 27.90 lakh equity shares amounting to ₹37.66 crores. The subscription window will open on May 27 2025 and close on May 29 2025. The allotment is expected by May 30 2025 with tentative listing on the BSE SME platform on June 3 2025.

The price band is fixed between ₹128 and ₹135 per equity share. At the upper price, the company’s market capitalization will be approximately ₹141.89 crores. The lot size is 1000 shares, requiring a minimum retail investment of ₹135000. High-Net-Worth Individuals (HNIs) must subscribe for a minimum of 2 lots or 2000 shares, totaling ₹270000.

The Book Running Lead Manager for the IPO is ONEVIEW CORPORATE ADVISORS PRIVATE LIMITED while the registrar is KFin Technologies Limited. Basan Equity Broking Limited acts as the market maker.

Financial Performance

Astonea Labs has shown steady growth in financial performance over recent years as seen below (in lakh):

• Revenue from operations:

  • FY2022: 301746

  • FY2023: 672586

  • FY2024: 802885

  • 9M FY2024 (ended Dec 31): 696886

• EBITDA:

  • FY2022: 58687

  • FY2023: 73362

  • FY2024: 120389

  • 9M FY2024: 114666

• Profit After Tax (PAT):

  • FY2022: 2488

  • FY2023: 6652

  • FY2024: 38098

  • 9M FY2024: 41030

The company reports a pre-issue EPS of ₹5.01 and post-issue EPS of ₹3.62 for FY24. The pre-issue Price to Earnings (P/E) ratio stands at 26.95x, while the post-issue P/E ratio increases to 37.25x, both lower than the industry average P/E of 49x, indicating fair valuation.

Key ratios include a Return on Capital Employed (ROCE) of 22.95 percent, Return on Equity (ROE) of 37.86 percent, and Return on Net Worth (RoNW) of 31.83 percent for FY24. The annualized EPS based on latest financials is ₹7.09 with a P/E ratio of 19.03x, further supporting the fair pricing of the IPO.

Grey Market Premium and Market Outlook

The Grey Market Premium for Astonea Labs IPO is zero, reflecting no anticipated listing day gains. Since GMP is an informal indicator based on unregulated demand and supply, investors should not rely on it exclusively for investment decisions.

Management and Industry Insight

The company is led by Mr Ashish Gulati, Promoter and Managing Director, with over 6 years of experience in the pharmaceutical and cosmetic sectors. The senior management has played a key role in the company’s growth and continues to provide strategic oversight.

Given the growing demand for pharmaceutical and cosmetic products, especially those catering to lifestyle and chronic diseases, Astonea Labs is well positioned to capitalize on market opportunities.

Risks and Considerations

• Fair valuation limits upside for listing day gains

• Zero GMP indicates low speculative interest in grey market

• Highly competitive pharma and cosmetic industry

• Listing on BSE SME platform may reduce liquidity compared to main exchange

Conclusion

Astonea Labs IPO offers access to a diversified pharmaceutical and cosmetic product company with steady financial growth and experienced leadership. However, due to fair pricing and zero GMP, it does not promise attractive short-term listing gains.

Final Recommendation

Investors seeking quick listing gains should avoid Astonea Labs IPO. Long-term investors interested in pharmaceutical growth and cosmetics may consider it after careful risk evaluation.

The Upcoming IPOs in this week and coming weeks are Neptune Petrochemicals, Aegis Vopak Terminals, Schloss Bangalore, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning.

The Current active IPO are Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries.

The Closed IPOs are Borana Weaves.