Astonea Labs Limited, a pharmaceutical and cosmetic product manufacturer, is launching its Initial Public Offering (IPO) in May 2025. The company specializes in a diverse range of products including antibiotic drugs, anti-cold medicines, antihistamines, and medications for diabetes, cardiovascular diseases, gynecological issues, analgesics, fungal infections, and multivitamins. They also market cosmetic and personal care products like skin, tooth, and hair care items, available in multiple forms such as gels, ointments, creams, lotions, oils, and serums.

IPO Issue Details

The Astonea Labs IPO is a Book Built Issue consisting entirely of a fresh issue of 27.90 lakh shares, with a total issue size of ₹ 37.66 Crores. The subscription window opens on May 27, 2025, and closes on May 29, 2025. The IPO shares will be listed on the BSE SME platform, with an expected allotment finalization date of May 30, 2025, and a tentative listing date around June 3, 2025.

The price band is fixed between ₹ 128 and ₹ 135 per equity share. At the upper price band of ₹ 135, the company’s market capitalization will be approximately ₹ 141.89 Crores. The lot size is set at 1,000 shares, with retail investors required to invest a minimum of ₹ 1,35,000. High-Net-Worth Individuals (HNIs) must subscribe for at least 2 lots (2,000 shares), amounting to ₹ 2,70,000.

The issue is managed by ONEVIEW CORPORATE ADVISORS PRIVATE LIMITED as the Book Running Lead Manager, with KFin Technologies Limited acting as the Registrar and Basan Equity Broking Limited serving as the Market Maker.

Anchor Investors and Grey Market Premium

Astonea Labs successfully raised ₹ 10.66 Crores from Anchor Investors who subscribed at the upper price band of ₹ 135 per share, amounting to an allocation of 7,90,000 equity shares. The anchor portion was reserved from the Qualified Institutional Buyers (QIBs) category.

Regarding the Grey Market Premium (GMP), the current expectation stands at ₹ 0, reflecting a neutral premium. This indicates no significant listing gains are anticipated based on market demand and the company’s financials. The GMP is provided solely for informational purposes and does not represent an official market price.

How to Check IPO Allotment

Investors can check the IPO allotment status starting May 30, 2025 on the registrar’s website. By entering the IPO name, application number, PAN, or DP Client ID, applicants can verify whether their shares have been allotted.

Use of IPO Proceeds

The company plans to deploy the IPO proceeds as follows:

1. ₹ 128.97 Lakh towards product registration in Bolivia, South America.

2. ₹ 523.40 Lakh for purchase and installation of new machinery to boost ointment production at their Haryana factory, aimed at exports.

3. ₹ 495.15 Lakh for advertising, marketing, and brand building efforts.

4. ₹ 68.38 Lakh for hardware and software investments.

5. ₹ 1,975.00 Lakh for funding working capital requirements.

6. Remaining funds for general corporate purposes.

Financial Performance Highlights

Astonea Labs has shown consistent growth over recent years:

• Revenue from operations grew from ₹ 3,017.46 Lakh in FY 2022 to ₹ 8,028.85 Lakh in FY 2023, and ₹ 6,968.86 Lakh in the nine months ending December 2024.

• EBITDA improved from ₹ 586.87 Lakh in FY 2022 to ₹ 1,203.89 Lakh in FY 2023, with ₹ 1,146.66 Lakh recorded for the period ending December 2024.

• Profit after Tax (PAT) increased significantly from ₹ 24.88 Lakh in FY 2022 to ₹ 380.98 Lakh in FY 2023 and ₹ 410.30 Lakh for the period ended December 2024.

Key ratios for FY24 indicate a pre-issue EPS of ₹ 5.01 and a post-issue EPS of ₹ 3.62. The pre-issue P/E ratio stands at 26.95x and post-issue at 37.25x, compared to the industry average P/E of 49x. The company’s ROCE is 22.95%, ROE is 37.86%, and Return on Net Worth (RoNW) is 31.83%, suggesting strong operational efficiency and profitability.

IPO Valuation and Recommendation

Considering the financials and valuation, the IPO is fairly priced but does not offer significant listing gains as reflected by the zero Grey Market Premium. Given the steady growth, moderate valuation, and upcoming expansion plans, the IPO may suit investors looking for long-term value rather than quick listing profits.

Overall, cautious investors may consider avoiding the Astonea Labs IPO for immediate listing gains but can evaluate the company’s growth potential for longer-term investment.

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, Borana Weaves.

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