Astonea Labs Limited, a pharmaceutical and cosmetic products manufacturer, has launched its initial public offering (IPO) with a fresh issue worth ₹37.66 Crores. The IPO opens for subscription on May 27, 2025, and closes on May 29, 2025, offering investors an opportunity to invest in a growing company specialized in a broad product range including antibiotics, anti-cold medications, antihistamines, diabetes and cardiovascular drugs, analgesics, and multivitamins. The company also manufactures skin, hair, and oral care products available in gels, creams, lotions, ointments, oils, and serums.

IPO Issue Details

The Astonea Labs IPO is a Book Built Issue comprising a fresh issue of 27.90 lakh shares with a price band fixed between ₹128 to ₹135 per equity share. The company aims to raise ₹37.66 Crores through this issue. The IPO lot size is fixed at 1,000 shares, with retail investors required to invest a minimum of ₹1,35,000 (1 lot) and high-net-worth individuals (HNIs) needing a minimum of 2 lots (2,000 shares) amounting to ₹2,70,000.

The company will list its shares on the BSE SME platform, with the tentative listing date set for June 3, 2025. The allotment of shares is expected to be finalized by May 30, 2025.

Promoter and Management

Astonea Labs is promoted by Mr. Ashish Gulati, who also serves as the Managing Director. With over six years of industry experience, Mr. Gulati and the senior management team have contributed significantly to the company's growth and operational success.

Financial Performance Overview

The company has demonstrated steady financial growth over recent years. Revenues from operations rose from ₹3,017.46 Lakh in FY22 to ₹8,028.85 Lakh in FY24, indicating rapid expansion. EBITDA also improved significantly from ₹586.87 Lakh in FY22 to ₹1,203.89 Lakh in FY24. Profit After Tax (PAT) surged from ₹24.88 Lakh in FY22 to ₹380.98 Lakh in FY24, showcasing increased profitability.

Key financial ratios include:

• Pre-issue Earnings Per Share (EPS) for FY24: ₹5.01

• Post-issue EPS for FY24: ₹3.62

• Pre-issue Price-to-Earnings (P/E) ratio: 26.95x

• Post-issue P/E ratio: 37.25x

• Industry average P/E ratio: 49x

• Return on Capital Employed (ROCE) for FY24: 22.95%

• Return on Equity (ROE) for FY24: 37.86%

• Return on Net Worth (RoNW) for FY24: 31.83%

These metrics suggest the IPO is reasonably priced compared to industry standards.

IPO Proceeds and Utilization

Astonea Labs intends to deploy the IPO proceeds in the following key areas:

• ₹128.97 Lakh for product registration in Bolivia, South America

• ₹523.40 Lakh for purchase and installation of new plant and machinery for ointment production in the existing premises at Haryana

• ₹495.15 Lakh for advertising, marketing, and brand building

• ₹68.38 Lakh for hardware and software procurement

• ₹1,975.00 Lakh to meet working capital requirements

• Remaining funds for general corporate purposes

Anchor Investors and GMP

The company raised ₹10.66 Crores from anchor investors at the upper price band of ₹135 per share, with 7,90,000 shares allotted in the Qualified Institutional Buyers (QIB) category.

As of May 21, 2025, the Grey Market Premium (GMP) for Astonea Labs IPO is ₹0, indicating no expected listing gains. The GMP tends to fluctuate based on demand and supply in unorganized markets and should be viewed only as a reference point rather than a guaranteed price indicator.

Subscription Status

On the opening day, May 27, 2025, as of 10:30 AM, the IPO had subscribed 0.03 times, indicating a slow start. Investors can track the live subscription status on the BSE website throughout the subscription period.

How to Check IPO Allotment

Investors can check their allotment status from May 30, 2025, onwards via the registrar’s website:

• Visit the IPO allotment status page

• Select "Astonea Labs Limited IPO" from the dropdown

• Enter application number, PAN, or DP Client ID

• Submit details to view allotment status

Expert Review and Recommendation

Astonea Labs operates in the promising pharmaceutical and cosmetic sector with a diversified product range. The company has reported steady revenue and profit growth, backed by sound management and clear IPO fund utilization plans. However, the current Grey Market Premium is zero, suggesting that no listing gains are expected. The valuation is fair but does not offer an immediate upside for listing profits.

Considering the financial performance and valuation metrics, investors seeking quick listing gains may consider avoiding this IPO. Long-term investors with confidence in the pharma sector's growth prospects may evaluate further based on their risk appetite.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.