Asston Pharmaceuticals IPO: Growth & Listing Insights

Asston Pharmaceuticals Limited is launching its initial public offering (IPO) amid rising investor interest in small-cap pharma plays. The IPO has drawn attention for its solid financial growth, impressive grey market premium (GMP), and strategic use of proceeds. Here’s a comprehensive look at all aspects of the Asston Pharmaceuticals IPO.

About the Company

Established in 2019, Asston Pharmaceuticals Limited is a growing pharmaceutical manufacturer based in Navi Mumbai. The company produces a wide range of pharmaceutical and nutraceutical products including:

• Tablets

• Capsules

• Oral Liquids

• Ointments

• Protein Powders

• Sachets

Asston’s operations are compliant with WHO-GMP guidelines, and it caters to both domestic and international markets. Its product mix serves therapeutic segments like antibiotics, antifungals, vitamins, gastrointestinal treatments, and pain management.

IPO Overview

• IPO Type: Book-building (SME)

• Total Issue Size: 22.41 lakh shares

• Total Amount Raised: ₹27.56 crore

• Face Value: ₹10 per share

• Price Band: ₹115 to ₹123 per share

• Minimum Lot Size: 2 lots (2,000 shares)

• Minimum Investment: ₹2,46,000

• Listing Exchange: BSE SME

• IPO Opening Date: 9th July 2025

• IPO Closing Date: 11th July 2025

• Allotment Date: 14th July 2025

• Refunds & Demat Credits: 15th July 2025

• Tentative Listing Date: 16th July 2025

Grey Market Premium (GMP)

As of July 10, 2025 (12:00 PM), the GMP of Asston Pharmaceuticals IPO stands at ₹15 per share, reflecting healthy interest among investors.

• IPO Price (Upper Band): ₹123

• Estimated Listing Price: ₹138

• Estimated Listing Gain: 12.20%

The consistent GMP trend over the last few days indicates positive sentiment in the market for this IPO.

Subscription Status (as of 12:00 PM on July 10, 2025)

• Overall Subscription: 2.45 times

• Qualified Institutional Buyers (QIBs): 5.22 times

• Non-Institutional Investors (NIIs): 1.76 times

• Retail Individual Investors (RIIs): 1.89 times

Institutional participation has been a key driver in the robust subscription, reflecting confidence in the company’s growth potential and financial structure.

Objectives of the IPO

Asston Pharmaceuticals aims to utilize the ₹27.56 crore raised through the IPO for the following objectives:

1. Capital Expenditure: Procurement and installation of advanced manufacturing machinery to expand production.

2. Working Capital Requirements: Supporting raw material procurement, labor costs, and marketing.

3. Debt Repayment: Reduction of existing financial liabilities to improve leverage.

4. General Corporate Purposes: Enhancing business operations, branding, and compliance.

Financial Highlights

The company has shown substantial financial growth over the past three years:

Profit & Loss Statement (₹ in crore)

Balance Sheet Summary (₹ in crore)

Key Financial Ratios

These ratios reflect the company’s high efficiency in using capital and its ability to generate returns for shareholders.

Promoter Shareholding

The dilution is modest, and promoters continue to retain majority control post-listing.

Peer Comparison

Asston’s ROCE and RoNW outperform all listed peers, positioning it as an efficient and high-potential growth player.

Strengths of Asston Pharmaceuticals

1. High Growth Rate: Over 60% YoY revenue growth and over 200% profit jump.

2. Robust Return Ratios: ROCE above 50% indicates excellent operational efficiency.

3. Export Focus: Growing international presence provides future expansion opportunities.

4. Institutional Interest: QIB oversubscription suggests market confidence.

5. Conservative Debt Levels: Manageable debt improves financial resilience.

Risks to Consider

1. SME Listing Platform: May result in limited liquidity and higher volatility post-listing.

2. Small Company Risk: Limited historical data and smaller scale operations.

3. Competition: Highly competitive pharmaceutical sector with large incumbents.

4. Execution Risk: Expansion and capital deployment must be managed efficiently.

5. GMP Volatility: Grey market interest can change rapidly post-listing.

IPO Registrar & Contact Details

• Registrar: Maashitla Securities Private Limited

• Contact: investor.ipo@maashitla.com | +91-11-45121795-96

IPO Strategy for Investors

• Retail Investors: The high minimum investment of ₹2.46 lakh may limit participation. Only those with high-risk tolerance should consider.

• HNI Investors: Strong fundamentals and GMP offer a good opportunity for medium-term holding.

• Long-Term Investors: For investors seeking exposure to small-cap pharma with a growth trajectory, Asston can be a potential addition.

• Listing Day Traders: With 12.20% GMP and healthy demand, short-term listing gains are possible.

ALSO READ: Smartworks Coworking IPO Opens: Full 2025 Guide

Final Verdict

Asston Pharmaceuticals IPO presents an interesting opportunity in India’s growing pharmaceutical sector. It combines robust financial metrics with strong investor interest, especially from institutions. While it does carry the risks typical of SME IPOs, including liquidity concerns and volatility, its strengths in profitability, return ratios, and execution efficiency offer compelling reasons to invest.

Summary

• Company: Fast-growing pharma manufacturer with export capabilities

• IPO: ₹27.56 crore, SME book-building issue

• Valuation: Attractive at a post-IPO PE of 13.20

• GMP: ₹15 as of July 10, indicating 12.2% listing gains

• Subscription: 2.45x overall with strong QIB demand

• Verdict: Suitable for informed HNIs and investors seeking small-cap pharma exposure

(You can visit the official site for company updates and investor information.)

www.asstonpharmaceuticals.com