Astec LifeSciences lists at Rs 85.55 on BSE

Astec Lifesciences Ltd. has listed at Rs 85.55, a premium of Rs 3.55 as against issue price of Rs 82 per share on the BSE and at Rs. 83 on the NSE. The stock saw an intraday high of Rs. 90.70 on the both exchanges.

The company had come out with a public issue of 75,00,000 equity shares of Rs 10 each for cash at a price of Rs 77-82 per equity share on 29th October, 2009. It has raised Rs 61.50 crore from the issue, which was subscribed just 1.56 times.

Astec LifeSciences Ltd. is engaged in the manufacture and sale of intermediates, active ingredients and formulations in the off patent–proprietary category with a focus on agrochemical and pharmaceutical sector. This Issue is being made through a 100% Book Building Process. Almondz Global Securities Limited are the book running lead managers. It carries out manufacturing activities at two locations in Maharashtra, India comprising of three units viz. one unit at Dombivli, Maharashtra and two units at Mahad, Maharashtra.

The main purpose of the IPO is to raise funds for the company’s expansion plans for its production and R&D units in Maharashtra. Astec plans to expand the production capacity of its unit in Mahad from the current 2800 Metric Tonnes to 3950 Metric Tonnes. The company will also upgrade its R&D facility at Dombivli near Mumbai which will enable them to carry out research on more complex molecules and to undertake contract research activities. The proceeds of the IPO will also be utilized to register two products in Brazil and six products in India.