Astonea Labs Limited, a company engaged in the manufacturing and marketing of a broad range of pharmaceutical and cosmetic products, recently closed its Initial Public Offering (IPO) on May 29, 2025. Despite having no Grey Market Premium (GMP), the IPO received a decent subscription of 2.44 times, demonstrating investor interest based on company fundamentals rather than speculative grey market activity.

The IPO, worth ₹37.66 crores, was a 100% fresh issue comprising 27.90 lakh equity shares. The shares were offered in a book-built issue format, with the price band set between ₹128 and ₹135. This places the market capitalization of the company at ₹141.89 crores based on the upper end of the price band.

Company Overview

Astonea Labs is involved in the production of various medications and personal care products, including:

• Antibiotics

• Anti-cold and antihistamine medications

• Drugs for diabetes and cardiovascular diseases

• Gynecological medicines and analgesics

• Multivitamins and antifungal treatments

Additionally, the company produces cosmetic and healthcare products such as skin care, hair care, and oral care items available in forms like creams, gels, lotions, serums, and oils.

This diversified product range helps the company cater to various therapeutic segments, both in the domestic and international markets.

IPO Details

• Issue Size: ₹37.66 Crores

• Fresh Issue: 27.90 lakh shares

• Price Band: ₹128–₹135 per equity share

• Lot Size: 1,000 shares

• Retail Investment Minimum: ₹1,35,000

• HNI Investment Minimum: ₹2,70,000 (2 lots)

• IPO Open Date: May 27, 2025

• IPO Close Date: May 29, 2025

• Allotment Date: May 30, 2025 (Tentative)

• Listing Date: June 3, 2025 (Tentative)

• Exchange: BSE SME

Lead Managers and Registrar

• Book Running Lead Manager: ONEVIEW CORPORATE ADVISORS PRIVATE LIMITED

• Registrar: KFin Technologies Limited

• Market Maker: Basan Equity Broking Limited

Subscription Status

As of the final day of the IPO (May 29, 2025), the total subscription was 2.44 times. While not indicative of massive retail frenzy, it reflects steady institutional and HNI interest in the offer.

Anchor Investment

The company raised ₹10.66 crores from anchor investors by allocating 7,90,000 equity shares at the upper band price of ₹135 per share. This often indicates confidence in the pricing strategy and the future potential of the business.

Grey Market Premium (GMP)

Despite being a common metric followed by retail investors for short-term gains, the GMP for Astonea Labs IPO remained at ₹0. This reflects a lack of speculative activity and suggests that listing gains are unlikely. However, this also means that the IPO price could be more grounded in fundamentals rather than hype.

Objectives of the Issue

The proceeds from the IPO will be used across various key areas:

1. Product Registration in Bolivia (South America): ₹128.97 lakh

2. Plant and Machinery for Ointment Production: ₹523.40 lakh (for export purposes and compliance with international protocols)

3. Advertising, Marketing & Brand Building: ₹495.15 lakh

4. Hardware & Software Procurement: ₹68.38 lakh

5. Working Capital Requirements: ₹1,975 lakh

6. General Corporate Purposes

These objectives show the company's focus on global expansion, infrastructure enhancement, and brand positioning, especially for international markets.

Financial Performance

Revenue Growth:

• FY22: ₹3,017.46 Lakh

• FY23: ₹6,725.86 Lakh

• FY24: ₹8,028.85 Lakh

• 9M FY25 (till Dec 31): ₹6,968.86 Lakh

EBITDA:

• FY22: ₹586.87 Lakh

• FY23: ₹733.62 Lakh

• FY24: ₹1,203.89 Lakh

• 9M FY25: ₹1,146.66 Lakh

Profit After Tax (PAT):

• FY22: ₹24.88 Lakh

• FY23: ₹66.52 Lakh

• FY24: ₹380.98 Lakh

• 9M FY25: ₹410.30 Lakh

Key Ratios and Valuations:

• Pre-Issue EPS (FY24): ₹5.01

• Post-Issue EPS (FY24): ₹3.62

• P/E Ratio (Post-Issue): 37.25x

• Industry P/E Benchmark: ~49x

• ROCE: 22.95%

• ROE: 37.86%

• RoNW: 31.83%

• Annualised EPS (9M FY25): ₹7.09

• Annualised P/E Ratio: ~19.03x

The above metrics suggest a stable and steadily growing company, but the valuation is slightly stretched compared to peers unless the company maintains or improves its current growth rate.

Promoter Background

Mr. Ashish Gulati, the Managing Director and Promoter, has over 6 years of industry experience. Under his leadership, the company has seen significant growth in revenue and profits, as seen in its financial data. His involvement in strategic decision-making and operations has been pivotal.

Allotment and Listing

The IPO allotment is expected on May 30, 2025, and the shares will be listed on BSE SME around June 3, 2025. Investors can check allotment status by visiting the registrar's website (KFintech) and entering their PAN, application number, or DP ID.

Astonea Labs IPO – Should You Subscribe?

While the subscription numbers show healthy demand and the financials indicate steady growth, there are a few considerations:

• GMP is nil, indicating limited listing gains.

• Valuation is on the higher side compared to peers in the SME segment.

• Long-term potential exists, especially due to export focus and diverse product portfolio.

Verdict: Avoid for Listing Gains

Given the ₹0 GMP, premium valuation, and moderate subscription, listing gains are unlikely. The IPO appears to be fairly priced for long-term investors but may not suit those seeking short-term profits.

Disclaimer:
This article is for educational purposes only. It should not be construed as investment advice. Always consult with a SEBI-registered advisor before making investment decisions. All views expressed here are general in nature and based on publicly available data as of the time of writing.

About the Author:
CA Abhay Kumar (aka CA Abhay Varn) is a SEBI Registered Research Analyst (INH300008465) and a qualified Chartered Accountant. With 8+ years of stock market experience, Abhay provides insightful and data-backed analysis for investors.

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