Asston Pharmaceuticals IPO fully booked on day 1, QIBs take lead

Asston Pharmaceuticals IPO

Asston Pharmaceuticals has received good response from investors to its maiden public issue which closed the first day of bidding with 1.63 times subscription on July 9. Investors have bid 26.15 lakh shares compared to the offer size of 16.06 lakh shares via 500 applications.

The Navi Mumbai-based pharmaceutical products maker is raising Rs 27.56 crore via initial public offering of 22.41 lakh shares. The price band for the offer is Rs 115-123 per share.

Qualified institutional investors were at the forefront to get the issue fully subscribed on day 1, bidding 3.51 times their allotted quota. The portion set aside for retail investors was subscribed 1.22 times, but there has been muted response from non-institutional investors whose reserved part was booked 22 percent.

The IPO comprises of solely fresh issue by the company that manufactures and exports both pharmaceutical formulations and nutraceutical products.

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On July 8, a day before the IPO opening for public subscription, it has already raised Rs 7.81 crore from four anchor investors - Vikasa India, Kingsmean Wealth Fund, Minerva Ventures Fund, and Abundantia Capital - at Rs 123 per share.

Asston Pharmaceuticals intends to utilise IPO proceeds for acquiring machinery in the manufacturing unit, and working capital requirements. Further, the fresh issue money will be used for repaying debt, and general corporate purposes.

Asston is FDA certified by both the Central and State FDA, accredited by NQA (Nuclear Quality Assurance), and complies with the Quality Management System (QMS) standards. Currently, it has over 150 registered trademarks for pharmaceutical formulations. Its primary products include capsules, syrups, sachets, and injectables (LVP and SVP), which are sold globally, with pharmacies as its main customers.