Asston Pharmaceuticals IPO closes with 173.53 times subscription; check GMP ahead of listing next week

Asston Pharmaceuticals IPO

Asston Pharmaceuticals has garnered strong interest from investors for its initial public offering (IPO), which saw a massive 173.53 times subscription on July 11, the final day of bidding.

Investors have subscribed for 27.86 crore equity shares during July 9-11, compared to the offer size of 16.06 lakh shares via 79,343 applications.

Non-institutional investors took the lead, bidding 261.67 times their reserved portion. The part allotted for retail investors was subscribed 172.14 times, and that of qualified institutional buyers 85.76 times.

The Navi Mumbai-based pharmaceutical formulations and nutraceutical products maker will finalise the IPO share allotment by July 14. Its shares will be available for trading on the BSE SME effective July 16.

Ahead of listing next week, Asston Pharma shares traded at a 24 percent premium in the grey market, the unofficial market for trading in the IPO shares till their listing on the bourses, the market observers said.

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The company is raising Rs 27.56 crore via maiden public issue of 22.41 lakh shares at the upper end of price band of Rs 115-123 per share.

The fresh issue proceeds will be utilised mainly for acquiring machinery in the manufacturing unit, and incremental working capital requirements. Further, the remainder funds will be used for repaying debt, and general corporate purposes.

Asston Pharma manufactures pharmaceutical formulations and nutraceutical products for domestic and various African markets, currently holding over 150 registered trademarks for pharmaceutical formulations. It also makes products for other pharma companies on the contract manufacturing basis.