Astonea Labs Limited, a company specializing in the manufacturing and marketing of a diverse range of pharmaceutical and cosmetic products, has announced its initial public offering (IPO) through a book built issue. The IPO is scheduled to open on May 27, 2025, and close on May 29, 2025, offering investors an opportunity to subscribe to fresh equity shares worth ₹ 37.66 Crores. The company’s share price band is fixed between ₹ 128 and ₹ 135 per equity share, positioning the market capitalization at approximately ₹ 141.89 Crores based on the upper band price of ₹ 135 per share.

Astonea Labs’ product portfolio includes antibiotic drugs, anti-cold medications, antihistamines, and treatments for diabetes, cardiovascular ailments, gynecological concerns, analgesics, fungal infections, and multivitamins. In addition to pharmaceutical drugs, the company offers skin, tooth, and hair care products in various forms such as gels, ointments, creams, lotions, oils, and serums. This diverse range of products demonstrates the company's strong footprint in both pharmaceutical and cosmetic sectors.

The IPO comprises a fresh issue of 27.90 lakh shares, with a minimum lot size set at 1,000 shares. Retail investors must invest a minimum amount of ₹ 1,35,000, while high-net-worth individuals (HNIs) need to subscribe to a minimum of 2 lots, amounting to ₹ 2,70,000. The shares will be listed on the BSE SME platform with an expected listing date around June 3, 2025. The allotment of shares is scheduled for May 30, 2025, allowing investors to check their allotment status via the registrar’s website by entering their application number, PAN, or DP Client ID.

The company has raised ₹ 10.66 Crores from anchor investors who were allotted 7.9 lakh shares at the upper price band of ₹ 135 per share, under the Qualified Institutional Buyers (QIB) category. This anchor allocation is intended to strengthen the IPO subscription and instill investor confidence.

From a financial perspective, Astonea Labs has demonstrated steady growth over the years. The company reported revenues of ₹ 8,028.85 Lakh for the fiscal year 2024, up from ₹ 6,725.86 Lakh in 2023 and ₹ 3,017.46 Lakh in 2022. EBITDA improved from ₹ 586.87 Lakh in 2022 to ₹ 1,203.89 Lakh in 2024, indicating growing operational efficiency. Profit after tax (PAT) also showed significant improvement, reaching ₹ 410.30 Lakh in the period ended December 31, 2024, compared to ₹ 24.88 Lakh in 2022. These figures highlight a consistent upward trajectory in the company’s financial performance.

Key financial metrics also reflect promising fundamentals. The pre-issue Earnings Per Share (EPS) stands at ₹ 5.01, with a post-issue EPS of ₹ 3.62 for FY24. The pre-issue Price-to-Earnings (P/E) ratio is 26.95x, which is comparatively reasonable against the industry average of 49x. Return on Capital Employed (ROCE) for FY24 is 22.95%, while Return on Equity (ROE) is 37.86%, indicating efficient capital utilization and strong shareholder returns.

Regarding the Grey Market Premium (GMP), Astonea Labs IPO currently shows a GMP of ₹ 0, meaning there is no premium expected on listing day, and no significant listing gains are projected. This is influenced by the company’s financial metrics and market demand and supply dynamics, but investors should note that GMP is an unregulated, unofficial market indicator and should not be relied upon solely for investment decisions.

The company plans to use the IPO proceeds primarily for expanding production capabilities and market reach. This includes funding product registration in Bolivia, South America, purchase and installation of new plant and machinery for ointment production at the existing premises in Haryana, marketing and brand building, investments in hardware and software, working capital requirements, and other general corporate purposes. These investments aim to support the company’s growth and entry into international markets, potentially increasing revenues and profitability.

Promoted by Mr. Ashish Gulati, who has over six years of experience in the pharmaceutical industry, Astonea Labs benefits from experienced leadership. The management’s strategic guidance has been crucial in navigating business growth and operational performance.

In summary, Astonea Labs IPO offers investors an entry into a growing pharmaceutical and cosmetic company with diversified products and improving financials. However, the lack of Grey Market Premium indicates modest expectations for immediate listing gains, and investors should weigh the company's fundamentals against market conditions before investing. The IPO opens on May 27 and closes on May 29, with allotment and listing dates scheduled shortly thereafter, providing a clear timeline for participation.

This IPO could be suitable for investors looking for medium to long-term growth exposure in the pharmaceutical and cosmetics sectors via a company with established products and ongoing expansion plans. The subscription details, financial highlights, and IPO structure provide a comprehensive overview to make informed investment decisions on Astonea Labs’ public offering.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning..

The Current active IPO are Aegis Vopak Terminals, Schloss Bangalore, Unified Data - Tech Solutions.

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