Asston Pharmaceuticals Limited, a company dedicated to exporting a diverse range of healthcare products worldwide, is preparing to launch its Initial Public Offering (IPO). This offering provides an opportunity for investors to engage with a growing entity in the pharmaceuticals sector, known for its quality manufacturing and global reach. The IPO is set to open on Wednesday, July 9, 2025, and will conclude on Friday, July 11, 2025. This IPO is an important milestone for APL.
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Crucial Shariah Status
For investors guided by Islamic financial principles, it’s important to note that Asston Pharmaceuticals Ltd. is currently classified as Non-Shariah Compliant.
This classification primarily arises because the company fails Rule 4, related to its illiquid assets. Specifically, the illiquid assets to total assets ratio stands at 3.3%, which does not meet the Shariah criteria. While the core business of pharmaceuticals itself passes the Shariah screening, and the impermissible income to total revenue is 0.0%, the liquidity ratio is the determining factor for its non-compliant status. The interest-bearing debt to total assets is also well within limits at 10.43%, and the company passes the net liquid assets versus market capitalization and non-compliant investments to total assets rules.
Therefore, for Muslim investors strictly adhering to Shariah compliance, Asston Pharmaceuticals Ltd. IPO may not be considered a permissible investment avenue due to its specific financial metrics.
About Asston Pharmaceuticals Ltd.: Delivering Healthcare Solutions Globally
As we look forward to the IPO, it’s crucial for investors to understand the significance of APL within the global pharmaceutical landscape.
Asston Pharmaceuticals Limited is a dynamic player in the pharmaceutical industry, focusing on bringing a variety of healthcare products to markets around the world. The company excels in providing a broad spectrum of medicines, including tablets, capsules, sachets, and syrups. Their product line covers essential therapeutic areas such as pain relief (analgesics), infections (antibiotics, antifungals), and nutritional support (vitamins), among others.
Asston Pharmaceuticals operates on a flexible model, manufacturing pharmaceutical products for direct sales under its own name, and also engaging in contract manufacturing or loan license agreements. This means they produce medicines for other marketers, often working on a direct principle-to-principle basis.
The company prides itself on high-quality manufacturing, backed by certifications from both Central and State FDA. It is also accredited by NQA (Nuclear Quality Assurance) and strictly adheres to Quality Management System (QMS) standards.
Key Products:
- Albendazole USP 400 mg: A higher dosage of a broad-spectrum anti-worm medication used to treat various parasitic infections.
- Diclofenac 100 mg: A specific dosage of a widely used nonsteroidal anti-inflammatory drug (NSAID) for pain relief and inflammation.
- Ibuprofen, Paracetamol: Commonly used over-the-counter medications for managing pain and reducing fever.
- Ferrovit Syrup: A syrup formulated to treat vitamin and mineral deficiencies.
Competitive Strengths:
- Strong Formulation Expertise
- Experienced Promoters
- Wide Range of Products
- Strategic Location
- Skilled Workforce
Asston Pharmaceuticals IPO: Key Details
The Initial Public Offering of Asston Pharmaceuticals Ltd. is structured as a Bookbuilding Issue. The IPO will open on Wednesday, July 9, 2025, and is scheduled to close on Friday, July 11, 2025. The total issue size is 22,41,000 shares, aggregating up to ₹27.56 Crores, all of which will be fresh capital.
- IPO Open Date: July 9, 2025 (Wednesday)
- IPO Close Date: July 11, 2025 (Friday)
- Face Value: ₹10 per share
- Issue Price Band: ₹115 to ₹123 per share
- Lot Size: 1,000 Shares
- Sale Type: Fresh Capital
- Total Issue Size: 22,41,000 shares (aggregating up to ₹27.56 Crores)
- Reserved for Market Maker: 1,13,000 shares (aggregating up to ₹1.39 Crores) – JSK Securities and Services Private Limited
- Net Offered to Public: 21,28,000 shares (aggregating up to ₹26.17 Crores)
- Issue Type: Bookbuilding IPO
- Listing At: BSE SME
- Share Holding Pre Issue: 62,71,360 shares
- Share Holding Post Issue: 85,12,360 shares
- Tentative Allotment Date: Monday, July 14, 2025
- Initiation of Refunds: Tuesday, July 15, 2025
- Credit of Shares to Demat: Tuesday, July 15, 2025
- Tentative Listing Date: Wednesday, July 16, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on July 11, 2025
The minimum application for individual retail investors is 2 lots, or 2,000 shares, amounting to ₹2,46,000. For S-HNI, the minimum application is 3 lots (3,000 shares) at ₹3,69,000, and the maximum is 8 lots (8,000 shares) at ₹9,84,000. B-HNI minimum application is 9 lots (9,000 shares) at ₹11,07,000.
Financial Performance: A Snapshot of Asston Pharmaceuticals Ltd.
Asston Pharmaceuticals Limited has demonstrated significant financial growth. The company’s revenue increased by sixty-two percent (62%) and profit after tax (PAT) rose by a remarkable two hundred eighteen percent (218%) between the financial year ending March 31, 2024, and March 31, 2025.
As of May 31, 2025, the company reported total assets of ₹31.83 crores, with revenue at ₹6.21 crores. Profit After Tax stood at ₹1.32 crores, while EBITDA was ₹1.93 crores. Net Worth increased to ₹12.04 crores, and Reserves and Surplus reached ₹5.77 crores. Total Borrowing as of the same date was ₹7.83 crores. For comparison, on March 31, 2025, assets were ₹28.12 crores, revenue was ₹25.61 crores, PAT was ₹4.33 crores, EBITDA was ₹6.16 crores, Net Worth was ₹10.72 crores, Reserves and Surplus were ₹4.45 crores, and Total Borrowing was ₹7.26 crores. Looking back to March 31, 2024, assets were ₹20.26 crores, revenue was ₹15.84 crores, PAT was ₹1.36 crores, EBITDA was ₹2.55 crores, Net Worth was ₹6.39 crores, Reserves and Surplus were ₹5.61 crores, and Total Borrowing was ₹6.82 crores. On March 31, 2023, assets were ₹13.69 crores, revenue was ₹7.19 crores, PAT was ₹1.06 crores, EBITDA was ₹1.52 crores, Net Worth was ₹1.99 crores, Reserves and Surplus were ₹1.29 crores, and Total Borrowing was ₹5.25 crores.
Key Performance Indicator (KPI): Asston Pharmaceuticals Ltd.
Key Performance Indicators offer insights into Asston Pharmaceuticals Ltd.’s efficiency and valuation, as of Monday, March 31, 2025. The market capitalization of Asston Pharmaceuticals IPO is ₹104.70 Crores.
The Return on Equity (ROE) is 50.56 percent. The Return on Capital Employed (ROCE) is 51.25 percent. The Debt to Equity ratio stands at 0.68. The Return on Net Worth (RoNW) is 40.36 percent. The Profit After Tax (PAT) Margin is 17.27 percent, and the EBITDA Margin is 24.60 percent. The Price to Book Value ratio is 12.07.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Asston Pharmaceuticals IPO is currently ₹15, representing 12.20% over the issue price. This unofficial indicator reflects market sentiment and can fluctuate.
Objects of the Issue: Purpose of the IPO Funds
Asston Pharmaceuticals IPO proposes to utilize the Net Proceeds from the issue towards the following objectives:
- ₹60 million (₹6.00 crores) for funding capital expenditure requirements towards acquiring machinery in the manufacturing unit.
- ₹130 million (₹13.00 crores) for funding the incremental working capital requirements of the company.
- ₹10 million (₹1.00 crore) for repayment and/or prepayment, in part or full, of certain of the outstanding borrowings availed by the company.
- The remaining funds will be allocated for general corporate purposes.
Conclusion and Investor Outlook
Asston Pharmaceuticals Ltd. is a growing pharmaceutical exporter with a diverse product portfolio and a commitment to quality. While the company demonstrates strong financial growth and strategic strengths, potential investors should carefully consider the financial metrics, especially the Shariah compliance status due to the illiquid assets ratio, as part of their comprehensive research. An informed investment decision is best made after thorough research aligned with individual investment goals and risk tolerance.
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SEBI Disclaimer: Investment in securities markets are subject to market risks, read all the related documents carefully before investing. The information provided in this article is for educational and informational purposes only and does not constitute financial advice. Investors should consult with qualified financial professionals before making any investment decisions.