Astonea Labs IPO: Issue dates, price, and lot size

Astonea Labs Limited, a pharmaceutical and cosmetic manufacturing company, is set to enter the public market with its Initial Public Offering (IPO) worth ₹37.67 crores. The IPO comprises a completely fresh issue of 27.90 lakh equity shares. The subscription period will run from May 27 to May 29, 2025, with the company's listing scheduled on the BSE SME platform on Tuesday, June 3, 2025. The offering comes at a face value of ₹10 per share, priced in a band of ₹128 to ₹135, and is expected to attract investors keen on tapping into the company’s growth in contract manufacturing.

Retail investors can bid for a minimum of 1 lot, comprising 1,000 shares, requiring an investment of ₹1,28,000, while High Net-worth Individuals (HNIs) must apply for at least 2 lots, totaling ₹2,70,000. Share allotment is expected to be finalized by May 30, 2025, with refunds and demat transfers processed shortly thereafter. As Astonea Labs prepares for its market debut, the IPO offers a chance to participate in a company positioned in the expanding pharmaceutical and cosmetics space.

Astonea Labs IPO details

Astonea Labs Limited IPO is a fundraise worth ₹37.67 crores comprising purely of a fresh issue with 27.90 lakh shares. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from May 27, 2025, to May 29, 2025, providing an opportunity for investors looking to gain a stake in the biofuels space.

Astonea Labs IPO timeline

The Astonea Labs Limited IPO opens for subscription on May 27, 2025, and closes on May 29, 2025, with allotment scheduled for May 30, 2025.

Astonea Labs IPO review

Established in 2017, Astonea Labs Limited specializes in contract manufacturing of pharmaceutical and cosmetic products, catering to both domestic and international clients. The company produces and markets a broad range of healthcare and wellness products, including antibiotics, anti-cold medications, antihistamines, and treatments for conditions such as diabetes, heart diseases, gynecological concerns, and infections.

Astonea Labs also offers an array of personal care products such as gels, creams, and serums for skin, hair, and oral care. In addition to manufacturing, it trades in packaging and raw materials for the pharma and cosmetic sectors, ensuring compliance with industry standards. The company markets its own brands like "Glow Up" and "Regero," with plans to introduce "Avicel," and currently exports to markets including Iraq and Yemen.

Astonea Labs Limited plans to utilize the net proceeds from its IPO for multiple strategic initiatives, including funding registration expenses in Bolivia, South America; purchasing and installing plant and machinery for international-standard ointment production; advertising, marketing, and brand building; investing in hardware and software; meeting working capital requirements; and addressing general corporate purposes.

Astonea Labs IPO financials

As of March 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 37.86%, Return on Capital Employed (ROCE) at 22.95% and a Debt-to-Equity ratio of 2.16. The Return on Net-Worth (RoNW) stands at 31.83%, and the PAT Margin was 4.75. The Price to Book Value was 8.57. The company’s market capitalisation is ₹141.90 crores.

Amount in ₹ crores

The pre-IPO EPS is at ₹4.93 while the post-IPO EPS will be ₹5.20. Similarly, the pre-IPO Price to Earnings ratio is 27.36 and will become 25.94 post-IPO.

Astonea Labs IPO strengths

Astonea Labs Limited operates on a scalable, customer-centric, and order-driven business model designed to maximize the efficiency of existing resources. The company offers a wide portfolio of pharmaceutical and cosmetic products addressing conditions such as diabetes, cardiovascular and gynecological issues, fungal infections, and more, across various dosage forms including tablets, capsules, creams, gels, and serums. With a strong focus on quality and delivery, Astonea Labs has implemented stringent systems to ensure timely dispatches with minimal product rejections.

The company’s commitment to international standards is reflected in its certifications, including ISO 9001:2015 for quality management, ISO 22000:2018 for food safety, ISO 22716:2007 for good manufacturing practices, and a halal certification. Financially, Astonea Labs has demonstrated strong growth, with revenue from operations rising steadily from ₹30.06 crore in FY22 to ₹67.05 crore in FY23 and ₹80.19 crore in FY24. Profit after tax also showed significant improvement, increasing from ₹0.25 crore in FY22 to ₹0.66 crore in FY23 and reaching ₹3.81 crore in FY24.

Astonea Labs IPO weaknesses

Astonea Labs faces several challenges that could impact its growth and reputation. The company has not met its annual obligation under the US FDA over-the-counter (OTC) monograph user fee program, resulting in all its OTC monograph drugs being labeled as misbranded under Section 502(f) of the FD&C Act. This non-compliance prohibits legal distribution of these products in the U.S. and keeps the company on the FDA’s arrears list, potentially affecting its global standing and delaying international sales. Additionally, the company is involved in ongoing legal proceedings involving its promoters and directors, where any unfavorable outcomes could negatively influence its business prospects. Astonea Labs is also highly dependent on pharmaceutical product sales and contract manufacturing, with the latter contributing over 90% of revenue across recent financial years. Any slowdown in pharmaceutical demand or a shift in outsourcing patterns by clients could have adverse effects on its operations.

Further, the company’s reliance on a limited number of suppliers and customers presents a concentration risk. A significant portion of raw material purchases and revenue comes from its top 10 suppliers and customers, making the business vulnerable to supply chain disruptions or customer attrition. Financially, the company has experienced negative cash flows from both operating and investing activities in recent years, indicating potential liquidity issues if such trends persist. As of December 31, 2024, Astonea Labs also carried a financial debt burden of ₹43.86 crore, and any difficulty in servicing this debt may further strain its financial health.

Should you invest in the Astonea Labs IPO?

Investing early in Astonea Labs Limited’s IPO could offer an opportunity to be part of the company’s growth journey, particularly as it explores opportunities in the biofuels segment. However, potential investors should conduct a thorough evaluation of various aspects such as the company’s operational history, financial performance, industry outlook, and strategic plans. It is essential to align this assessment with individual investment goals and risk tolerance. Reviewing the offer document in detail and consulting a financial advisor is advisable to make a well-informed investment decision.

FAQs

What is the Astonea Labs Limited IPO?

The Astonea Labs Limited IPO is an BSE SME offering consisting of 27.90 lakh equity shares with a face value of ₹10, aiming to raise ₹37.67 crore. The price band has been set between ₹128 to ₹135 per share, with a minimum order quantity of 1,000 shares. This IPO will be open for subscription from May 27, 2025, to May 29, 2025. Oneview Corporate Advisors Private Limited is the book-running lead manager, Kfin Technologies Limited is the registrar.

When will the Astonea Labs IPO open?

The Astonea Labs Limited IPO will open for subscription on May 27, 2025, and will close on May 29, 2025.

When is the Astonea Labs IPO listing date?

The tentative listing date for the Astonea Labs Limited IPO is Tuesday, June 3, 2025.