Astonea Labs Limited, a prominent name in the pharmaceutical and cosmetic manufacturing sector, has launched its Initial Public Offering (IPO) with a fresh issue worth ₹ 37.66 Crores. This book-built issue consists of 27.90 lakh equity shares, offered entirely as a fresh issue to raise capital for expanding business operations. The IPO subscription opens on May 27, 2025, and closes on May 29, 2025, with the allotment expected on or around May 30, 2025. The shares will be listed on the BSE SME platform, with a tentative listing date set for June 3, 2025.

Business Overview

Astonea Labs specializes in manufacturing and marketing a wide range of pharmaceutical and cosmetic products. Their portfolio includes antibiotic drugs, anti-cold medications, antihistamines, diabetes drugs, cardiovascular medicines, gynecological treatments, analgesics, antifungal drugs, and multivitamins. They also produce skin, tooth, and hair care products in various forms such as gels, ointments, creams, lotions, oils, and serums. This diversified product mix positions Astonea Labs well in both pharmaceutical and cosmetic markets.

IPO Pricing and Investment Details

The IPO is priced in the band of ₹128 to ₹135 per equity share, with a market capitalization of approximately ₹141.89 Crores at the upper price band. The minimum lot size is 1,000 shares, which translates to a minimum retail investor investment of ₹1,35,000 at the upper band. High Net Worth Individuals (HNIs) must apply for at least two lots (2,000 shares), amounting to ₹2,70,000.

ONEVIEW CORPORATE ADVISORS PRIVATE LIMITED is managing the issue as the book running lead manager, while KFin Technologies Limited serves as the registrar. Basan Equity Broking Limited is the designated market maker for this IPO.

Financial Performance Highlights

Astonea Labs has demonstrated steady financial growth over recent years:

• Revenue from Operations: ₹6,968.86 Lakh (Q3 FY25), ₹8,028.85 Lakh (FY24), ₹6,725.86 Lakh (FY23), and ₹3,017.46 Lakh (FY22).

• EBITDA: ₹1,146.66 Lakh (Q3 FY25), ₹1,203.89 Lakh (FY24), ₹733.62 Lakh (FY23), and ₹586.87 Lakh (FY22).

• Profit After Tax (PAT): ₹410.30 Lakh (Q3 FY25), ₹380.98 Lakh (FY24), ₹66.52 Lakh (FY23), and ₹24.88 Lakh (FY22).

Key financial ratios indicate sound operational efficiency and profitability:

• Pre-issue EPS (FY24): ₹5.01; Post-issue EPS: ₹3.62

• Pre-issue P/E ratio: 26.95x; Post-issue P/E ratio: 37.25x (Industry P/E ~49x)

• ROCE FY24: 22.95%, ROE FY24: 37.86%, Return on Net Worth: 31.83%

• Annualized EPS based on latest data: ₹7.09 with a P/E ratio of 19.03x

These metrics suggest the IPO is fairly valued relative to industry standards.

Anchor Investors and GMP

Astonea Labs raised ₹10.66 Crores from anchor investors by allocating 7,90,000 shares at ₹135 each. The grey market premium (GMP) stands at ₹0, indicating no expected listing gains based on current demand and supply conditions. Investors should note that GMP is unofficial and can fluctuate with unorganized market activity. It is advised to rely on official IPO pricing and subscription data rather than grey market signals.

IPO Subscription Status

On the second day of the subscription period (May 28, 2025), the IPO was subscribed 0.35 times as of 10:30 AM, indicating moderate interest with remaining days to subscribe. Investors can track live subscription updates on the BSE website.

Allotment and Listing

The allotment of shares will be finalized on or around May 30, 2025, and will be accessible on the registrar’s website. Investors can check their allotment status by selecting Astonea Labs Limited IPO, entering their application number, PAN, or DP Client ID. The shares are expected to be listed on the BSE SME platform by June 3, 2025.

Use of IPO Proceeds

The funds raised from the IPO will be utilized for:

• Product registration expenses in Bolivia, South America (~₹1.29 Crores)

• Purchase and installation of plant & machinery for ointment production for exports (~₹5.23 Crores)

• Advertising, marketing, and brand building (~₹4.95 Crores)

• Investment in IT hardware and software (~₹0.68 Crores)

• Working capital requirements (~₹19.75 Crores)

• General corporate purposes

Conclusion and Recommendation

Given the company’s steady revenue growth, robust profitability metrics, and reasonable valuation, the Astonea Labs IPO presents a growth opportunity in the pharmaceutical and cosmetic manufacturing space. However, the current grey market premium signals no expected immediate listing gains. Investors aiming for long-term value should assess their risk appetite accordingly.

Recommendation: Avoid the Astonea Labs IPO for short-term listing gains; consider only if you have a medium to long-term investment horizon and belief in the company’s growth story.

The Upcoming IPOs in this week and coming weeks are 3B Films, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals, Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

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