Asston Pharmaceuticals disappoints with market debut, lists at 3% discount

Asston Pharmaceuticals shares listed at ₹119 per share, reflecting a discount of ₹4 or 3.25 per cent over the IPO issue price of ₹123.

Asston Pharmaceuticals IPO listing today: Shares of healthcare products supplier Asston Pharmaceuticals made a poor debut on the BSE SME platform on Wednesday, July 16, following the completion of its Initial Public Offering (IPO). The stock listed at ₹119 per share, reflecting a discount of ₹4 or 3.25 per cent over the IPO issue price of ₹123.

 

The Asston Pharmaceuticals IPO fell short of grey market expectations. Prior to the debut, its unlisted shares were trading at around ₹149 in the grey market, indicating a grey market premium (GMP) of ₹26 or approximately 21.14 per cent over the issue price, according to sources tracking unofficial market activity.  READ STOCK MARKET LIVE UPDATES TODAY

Asston Pharmaceuticals IPO details

The Asston Pharmaceuticals IPO comprised an entirely fresh issue of 2.24 million equity shares aggregating to ₹27.56 crore. The public offering was available for subscription from Wednesday, July 9, to Friday, July 11, at a price band of ₹115-123 per share, with a lot size of 1,000 shares.

 

The public issue received overwhelming demand from investors, getting oversubscribed by 173.53 times by the end of the subscription period, as per BSE data. The basis of allotment for Asston Pharmaceuticals IPO shares was finalised on Monday, July 14. The company has fixed the issue price at ₹123 per share.

 

Asston Pharmaceuticals will utilise the proceeds from its public issue to fund capital expenditure requirements, specifically for acquiring machinery for its manufacturing unit. A portion of the funds will also be allocated towards meeting the company's incremental working capital needs. Additionally, the proceeds will be used for the repayment and/or prepayment, either in part or in full, of certain outstanding borrowings. The remaining funds will be directed towards general corporate purposes.

About Asston Pharmaceuticals

Asston Pharmaceuticals specialises in exporting pharmaceuticals globally. The company offers a diverse range of products, including tablets, capsules, and syrups, across various therapeutic categories. Asston Pharmaceuticals is FDA-certified and complies with Quality Management System standards. The company's product portfolio includes medications for pain relief, infections, and vitamin deficiencies.