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IPO

Asston Pharmaceuticals Ltd

Asston Pharmaceuticals Ltd IPO

Status: Upcoming

Overview

IPO date

09 Jul 2025 to 11 Jul 2025

Face value

₹ 0 per share

Price

₹ 115 to ₹123 per share

Issue Size

2,241,000 shares
(aggregating up to ₹ 27.56 Cr)

Allotment Date

14 Jul 2025

Listing at

NSE

Issue type

Book Building - SME

Sector

Pharmaceuticals

Objectives of Asston Pharmaceuticals Ltd IPO

Asston Pharmaceuticals Ltd IPO Strategy

About Asston Pharmaceuticals Ltd

Asston Pharmaceuticals Limited was incorporated on 16th April 2019 as 'Asston Pharmaceutical Pvt. Limited' to contract produce pharmaceutical products for export market. Later on 1st April 2024, Company acquired Ferron Lifecare Private Limited, specializing into nutraceuticals business and produced nutraceutical products at their Ambarnath facility. Ferron Lifecare Private Limited, incorporated on 30th January 2020 was promoted by Dr. Ashish Sakalkar and Mr. Sachin Badakh. Finally, 'Asston Pharmaceuticals Private Limited' was converted from a Private Limited into a Public Limited Company in the name of 'Asston Pharmaceuticals Limited' on 29th August 2024 and received FDA approval for its Ambarnath facility on 2nd December 2024 to produce pharmaceutical products. Company is engaged in the manufacturing and export of both pharmaceutical formulations and nutraceutical products in domestic and various African markets. It operates under brand 'Asston'. Presently, Company is involved in the business of manufacturing and marketing of Tablets, Capsules, Oral Liquid, External Preparations (Ointment, Cream, Gel and Lotion) and Oral Powder (Sachet, Dry Syrup) etc. Company's operations are supported by experienced founders with expertise in managing supply chains and maintaining product quality. Currently, Company has its production plant at Ambernath, Maharashtra, for producing generic medicines in the tablet form and nutraceutical medicines in the tablet form, syrup and sachet form. Facility has total production capacity of up to around 8-9 crore tablets per month. Further, it produces an average of 5-6 crore tablets per month, with production capacity varying based on the weight of medicines. Higherweight medicines result in lower production quantities and vice versa. The syrup production capacity for nutraceuticals is approximately 37.5 kiloliters per month, while sachet production capacity ranges from 30 to 40 lakh sachets per month, depending on the powder weight per sachet. The facility is certified by relevant authorities and undergoes periodic audits by state and central FDA authorities. Company engages contract manufacturers to produce generic medicines and antibiotics in various forms, including tablets, sachets, syrups, and capsules. Company is planning an Initial Public Issue of 22,41,600 Equity Shares of face value of Rs. 10/- through Fresh Issue.

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Strengths vs Risks of Asston Pharmaceuticals Ltd

Know the pros & cons

Strengths

Formulation Expertise.
Experienced Promoters.
Wide range of Products.
Strategic Location.
Skilled Workforce.
Good relationship with contract manufacturers.
Quality Assurance.
Good relationship with clients in the export market.
Competitive Pricing.
Asset Light Model.

Risks

The Company operates in pharmaceutical sector, which is extensively regulated, any failures on its part to comply with the existing and future statutory and/or regulatory requirements in the pharmaceutical sector could adversely affect its business, results of operations and financial condition.
The company operate its own manufacturing facility for pharmaceutical products; however for certain products other than tablets, the company relies on third-party manufacturers to procure the pharmaceutical products.
The company depends on the success of its relationships with the company customers. The company derives a significant part of its revenue from its major customers and the company does not have long-term contracts with these customers other than contracts with 2 customers for one year. If one or more of such customers choose not to source their requirements from it, the company business, financial condition and results of operations may be adversely affected.
The loss of contract manufacturing tie-ups and the low entry barrier for contract manufacturing can affect production, order intake, revenue, cash flow, and profitability. The absence of exclusive agreements increases the risk of delays or disruptions in order execution, further impacting business operations.
The company has substantial working capital expenditure and may requires additional financing to meet those requirements and have risk of receivables, which could have an adverse effect on its results of operations and financial condition.
The property used by the Company for the purpose of its Registered Office and factory is not owned by the company. Any termination of the relevant lease agreement in connection with such property or the company failures to renew the same could adversely affect its operations.
The company success largely depends upon the knowledge and experience of its Promoters, Directors, the company Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of the company Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.
If the company is not able to attract and retain sufficient qualified and trained personnel at the Company which may adversely affect its business.
The company has been recently converted into public limited company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance and reputation.
All its manufacturing facilities are situated at Ambernath, Thane, Maharashtra resulting in concentration in a single region. Any interruption for a significant period of time, in these facilities may in turn adversely affect its business, financial condition and results of operations.
The Company may incur penalties or liabilities for non-compliance with certain provisions of the GST Act, Income Tax and other applicable laws in previous years.
Intense competition from the other contract manufacturers/ manufacturers in the generic and nutraceuticals space.
The company is highly dependent on its suppliers for uninterrupted supply of raw-materials. The company has not entered into any long-term supply agreement for the major raw materials required for manufacturing of its products. Also volatility in the prices and non-availability of these raw materials may have an adverse impact in its business prospects, results of operations and financial condition.
The availability of counterfeit drugs, such as those passed off by others as its products, and the introduction of alternative pharmaceutical products due to changes in technology or consumer needs, could adversely affect its goodwill, results of operations, financial results, and business prospects.
The company has only one Manufacturing Facility, continued operations of its manufacturing facility is critical to the company business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
Its business operations are majorly concentrated in certain geographical regions and on exports for overall revenues and any adverse developments affecting its operations in these regions could have a significant impact on the company revenue and results of operations.
The Company has reported certain negative cash flows from its operating and investing activities, details of which are given below. Sustained negative cash flow could impact its growth and business in the future.
The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders 100% of the Plant & Machinery, as specified in the Objects of the Issue chapter. Any delay in procurement of such Plant & Machinery may delay the schedule of implementation and may also lead to increase in cost of these Plant & Machinery, further affecting its revenue and profitability.
The Company has entered into certain related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
The company relies on third-party suppliers for the supply of raw materials, and any delay, interruption, or reduction in such supply could adversely affect its business, results of operations, financial condition, and cash flows. Additionally, the company conduct its business activities on a purchase order basis without entering into long-term agreements with its customers.
The company business activities are exposed to fluctuations in the prices of raw materials.
Its business is subject to a variety of safety, health and environmental laws, labour, and workplace related laws and regulations. Any failure on its part to comply with these applicable laws and regulations could have an adverse effect on its operations and financial condition.
The Company is reliant on the demand from the pharmaceutical industry for a significant portion of its revenue. Any downturn in the pharmaceutical industry or an inability to increase or effectively manage its sales could have an adverse impact on the Company's business and results of operations.
Its inability to accurately forecast demand for the company products and manage its inventory may have an adverse effect on the company business, financial condition, results of operations and cash flows.
The Company has incurred indebtedness which exposes it to various risks which may have an adverse effect on the company business and results of operations.
The company is 100% dependent on third party transportation providers for delivery of raw materials to it from the company suppliers and delivery of the company products to its customers. The company has not entered into any formal contracts with its transport providers and any failure on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.
The company has not commissioned an industry report for the disclosures made in the section titled ndustry Overview' and made disclosures on the basis of the data available on the internet and such data has not been independently verified by the company.
Any reduction in the demand for its products could lead to the underutilization of the company manufacturing capacity. Its may also face surplus production of a particular product due to various reasons including inaccurate forecasting of customer requirements, which could adversely affect its business, results of operations, financial condition and cash flows.
The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate the company business, and the failures to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failures to obtain or retain them in a timely manner or at all may adversely affect its operation.
The company has issued equity shares pursuant to a bonus issue prior to the Issue, and its will be eligible to issue equity shares pursuant to a bonus issue only when the company has sufficient reserves.
Its industry is labour intensive and the company business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.
The company success significantly depends upon the services of its Promoters and other Key Managerial Personnel and the company ability to retain them. Its inability to attract, hire, train and retain key managerial personnel may adversely affect the operations of the Company.
The directors of the company don't have the experience of the listed company and the requirements of being a listed company may strain its resources.
The company faces competition in its business from both organized and unorganized sector. Such competition may have a negative impact on its business prospects, future performance and financial condition.
The company requires working capital for its smooth day-to-day operations of business and any discontinuance or its inability to acquire adequate working capital timely and on favourable terms may have an adverse effect on its operations, profitability and growth prospects.
The company could be adversely affected due to misconduct or errors of its employees that are difficult to detect and any such incidents could adversely affect its financial condition, results of operations and reputation.
Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
The company is subject to risks associated with expansion into new markets.
In addition to regular remuneration, other benefits and expense reimbursement its Promoters, Directors, key managerial personnel or senior management hold a vested interest in the Company; to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving the company, whether with themselves individually or with its group companies/entities. The Company in future may enter in related party transactions subject to necessary compliances.
Its insurance coverage may not adequately protect the company against all material hazards, which may adversely affect its business, results of operations and financial condition.
The products that the company commercialize may not perform as expected which could adversely affect its business, financial condition and results of operations.
Any variation in the utilization of its Net Proceeds as disclosed in this Draft Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders' approval.
The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".
Its Promoters and Promoter Group will continue to retain majority shareholding in it after the Issue, which will allow them to exercise significant influence over the company and potentially create conflicts of interest.
Its inability to manage growth could disrupt the company business and reduce its profitability.
Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures. Moreover, its might not sustain historical dividend levels moving forward.
There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
The rate of interest for the loans obtained by it from the banks and Financial Institutions is variable and any increase in interest rates may adversely affect its results of operations and financial condition.
Changes in technology may render its current technologies obsolete or require the company to make substantial investments.
Any delay or defaults in receipt of payments or dues from its customers could result in a reduction of the company profits.
The company has not made any alternate arrangements for financing the 'objects of the Issue'. Any shortfall in raising or meeting the same could adversely affect its growth plans, operations and financial performance.
The requirements of being a public listed company may strain its resources and impose additional requirements.
Pursuant to listing of the Equity Shares, we may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by our major shareholders may adversely affect the trading price of its Equity Shares.
There is no existing market for the company Equity Shares, and its do not know if one will develop. The company stock price may be highly volatile after the Issue and, as a result, you could lose a significant portion or all of your investment.
Investors can be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
The ability of Indian companies to raise foreign capital may be constrained by Indian law.
Any downgrading of India's debt rating by a domestic or international rating agency could adversely affect the Company's business.
Conditions in the Indian securities market and stock exchanges may affect the price and liquidity of its Equity Shares.
The requirements of being a listed company may strain its resources.
Delay in raising funds from the IPO could adversely impact the growth rate.
There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE in a timely manner, or at all.
The Company may incur penalties or liabilities for non-compliance with certain provisions of the GST Act, Income Tax and other applicable laws in previous years.
The Company has reported certain negative cash flows from its operating and investing activities, details of which are given below. Sustained negative cash flow could impact its growth and business in the future.
The company has been recently converted into public limited company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance and reputation.
All its manufacturing facilities are situated at Ambernath, Thane, Maharashtra resulting in concentration in a single region. Any interruption for a significant period, in these facilities may in turn adversely affect the company business, financial condition and results of operations.
Intense competition from the other contract manufacturers/ manufacturers in the generic and nutraceuticals space.
The company is highly dependent on its suppliers for uninterrupted supply of raw-materials. The company has not entered into any long-term supply agreement for the major raw materials required for manufacturing of its products. Also, volatility in the prices and non-availability of these raw materials may have an adverse impact in the company business prospects, results of operations and financial condition.
The availability of counterfeit drugs, such as those passed off by others as its products, and the introduction of alternative pharmaceutical products due to changes in technology or consumer needs, could adversely affect its goodwill, results of operations, financial results, and business prospects.
The company has only one Manufacturing Facility, continued operations of its manufacturing facility is critical to its business and any disruption in the operation of the company manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
Its business operations are majorly concentrated in certain geographical regions and on exports for overall revenues and any adverse developments affecting the company operations in these regions could have a significant impact on its revenue and results of operations.
Its insurance coverage may not adequately protect the company against all material hazards, which may adversely affect its business, results of operations and financial condition.
Frequent changes in its Statutory Auditors in the recent past, and any such changes in the future, could adversely impact investor confidence and may lead to regulatory scrutiny.
The company is subject to risks associated with expansion into new markets.
The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders 100% of the Plant & Machinery, as specified in the Objects of the Issue chapter. Any delay in procurement of such Plant & Machinery may delay the schedule of implementation and may also lead to increase in cost of these Plant & Machinery, further affecting its revenue and profitability.
The Company has entered into certain related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
The company relies on third-party suppliers for the supply of raw materials, and any delay, interruption, or reduction in such supply could adversely affect its business, results of operations, financial condition, and cash flows. Additionally, The company conduct its business activities on a purchase order basis without entering into long-term agreements with its customers.
Its business activities are exposed to fluctuations in the prices of raw materials.
Its business is subject to a variety of safety, health and environmental laws, labour, and workplace related laws and regulations. Any failures on its part to comply with these applicable laws and regulations could have an adverse effect on the company operations and financial condition.
The Company is reliant on the demand from the pharmaceutical industry for a significant portion of its revenue. Any downturn in the pharmaceutical industry or an inability to increase or effectively manage the company sales could have an adverse impact on the Company's business and results of operations.
Its inability to accurately forecast demand for the company products and manage its inventory may have an adverse effect on the company business, financial condition, results of operations and cash flows.
The Company has incurred indebtedness which exposes us to various risks which may have an adverse effect on its business and results of operations.
The company is 100% dependent on third party transportation providers for delivery of raw materials to it from the company suppliers and delivery of its products to its customers. The company has not entered into any formal contracts with its transport providers and any failures on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.
The company has not commissioned an industry report for the disclosures made in the section titled `Industry Overview' and made disclosures on the basis of the data available on the internet and such data has not been independently verified by it.
Any reduction in the demand for its products could lead to the underutilization of the company manufacturing capacity. Its may also face surplus production of a particular product due to various reasons including inaccurate forecasting of customer requirements, which could adversely affect its business, results of operations, financial condition and cash flows.
The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failures to obtain or retain them in a timely manner or at all may adversely affect its operation.
The company has issued equity shares pursuant to a bonus issue prior to the Issue, and its will be eligible to issue equity shares pursuant to a bonus issue only when the company has sufficient reserves.
Its industry is labour intensive and our business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.
Its success significantly depends upon the services of our Promoters and other Key Managerial Personnel and the companny ability to retain them. Its inability to attract, hire, train and retain key managerial personnel may adversely affect the operations of the Company.
The directors of the company don't have the experience of the listed company and the requirements of being a listed company may strain its resources.
The company faces competition in its business from both organized and unorganized sector. Such competition may have a negative impact on its business prospects, future performance and financial condition.
The company requires working capital for its smooth day-to-day operations of business and any discontinuance or the company inability to acquire adequate working capital timely and on favourable terms may have an adverse effect on its operations, profitability and growth prospects.
The company could be adversely affected due to misconduct or errors of its employees that are difficult to detect and any such incidents could adversely affect the company financial condition, results of operations and reputation.
Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
In addition to regular remuneration, other benefits and expense reimbursement its Promoters, Directors, key managerial personnel or senior management hold a vested interest in the Company; to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving the company, whether with themselves individually or with its group companies/entities. The Company in future may enter in related party transactions subject to necessary compliances.
The products that the company commercialize may not perform as expected which could adversely affect its business, financial condition and results of operations.
Any variation in the utilization of its Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders' approval.
The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".
Its Promoters and Promoter Group will continue to retain majority shareholding in us after the Issue, which will allow them to exercise significant influence over it and potentially create conflicts of interest.
Its inability to manage growth could disrupt the company business and reduce its profitability.
Its ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures. Moreover, The company might not sustain historical dividend levels moving forward.
There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
The rate of interest for the loans obtained by it from the banks and Financial Institutions is variable and any increase in interest rates may adversely affect the company results of operations and financial condition.
Changes in technology may render its current technologies obsolete or require it to make substantial investments.
Any delay or defaults in receipt of payments or dues from its customers could result in a reduction of the company profits.
The company has not made any alternate arrangements for financing the `Objects of the Issue'. Any shortfall in raising or meeting the same could adversely affect its growth plans, operations and financial performance.
The requirements of being a public listed company may strain its resources and impose additional requirements.
Pursuant to listing of the Equity Shares, its may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.
There is no existing market for its Equity Shares, and the company does not know if one will develop. Its stock price may be highly volatile after the Issue and, as a result, you could lose a significant portion or all of your investment.
Investors can be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
The ability of Indian companies to raise foreign capital may be constrained by Indian law.
Any downgrading of India's debt rating by a domestic or international rating agency could adversely affect the Company's business.
Conditions in the Indian securities market and stock exchanges may affect the price and liquidity of its Equity Shares.
The requirements of being a listed company may strain its resources.
Delay in raising funds from the IPO could adversely impact the growth rate.
There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE in a timely manner, or at all.

How to check the allotment status of Asston Pharmaceuticals Ltd IPO?

Follow the steps

Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

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The IPO opens on 09 Jul 2025 & closes on 11 Jul 2025.

Asston Pharmaceuticals Ltd IPO will close on 11 Jul 2025.

Formulation Expertise.
Experienced Promoters.
Wide range of Products.
Strategic Location.
Skilled Workforce.
Good relationship with contract manufacturers.
Quality Assurance.
Good relationship with clients in the export market.
Competitive Pricing.
Asset Light Model.

S.No	Promoters Name	Pre Issue Shares	Pre Issue Percentage	Post Issue Shares	Post Issue Percentage
1	Ashish Narayan Sakalkar	1852856	29.54	1852856	21.77
2	Saili Jayaram More	1852856	29.54	1852856	21.77
3	Sachin Chandrakant Badakh	606768	9.68	606760	7.13

The Company operates in pharmaceutical sector, which is extensively regulated, any failures on its part to comply with the existing and future statutory and/or regulatory requirements in the pharmaceutical sector could adversely affect its business, results of operations and financial condition.
The company operate its own manufacturing facility for pharmaceutical products; however for certain products other than tablets, the company relies on third-party manufacturers to procure the pharmaceutical products.
The company depends on the success of its relationships with the company customers. The company derives a significant part of its revenue from its major customers and the company does not have long-term contracts with these customers other than contracts with 2 customers for one year. If one or more of such customers choose not to source their requirements from it, the company business, financial condition and results of operations may be adversely affected.
The loss of contract manufacturing tie-ups and the low entry barrier for contract manufacturing can affect production, order intake, revenue, cash flow, and profitability. The absence of exclusive agreements increases the risk of delays or disruptions in order execution, further impacting business operations.
The company has substantial working capital expenditure and may requires additional financing to meet those requirements and have risk of receivables, which could have an adverse effect on its results of operations and financial condition.
The property used by the Company for the purpose of its Registered Office and factory is not owned by the company. Any termination of the relevant lease agreement in connection with such property or the company failures to renew the same could adversely affect its operations.
The company success largely depends upon the knowledge and experience of its Promoters, Directors, the company Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of the company Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.
If the company is not able to attract and retain sufficient qualified and trained personnel at the Company which may adversely affect its business.
The company has been recently converted into public limited company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance and reputation.
All its manufacturing facilities are situated at Ambernath, Thane, Maharashtra resulting in concentration in a single region. Any interruption for a significant period of time, in these facilities may in turn adversely affect its business, financial condition and results of operations.
The Company may incur penalties or liabilities for non-compliance with certain provisions of the GST Act, Income Tax and other applicable laws in previous years.
Intense competition from the other contract manufacturers/ manufacturers in the generic and nutraceuticals space.
The company is highly dependent on its suppliers for uninterrupted supply of raw-materials. The company has not entered into any long-term supply agreement for the major raw materials required for manufacturing of its products. Also volatility in the prices and non-availability of these raw materials may have an adverse impact in its business prospects, results of operations and financial condition.
The availability of counterfeit drugs, such as those passed off by others as its products, and the introduction of alternative pharmaceutical products due to changes in technology or consumer needs, could adversely affect its goodwill, results of operations, financial results, and business prospects.
The company has only one Manufacturing Facility, continued operations of its manufacturing facility is critical to the company business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
Its business operations are majorly concentrated in certain geographical regions and on exports for overall revenues and any adverse developments affecting its operations in these regions could have a significant impact on the company revenue and results of operations.
The Company has reported certain negative cash flows from its operating and investing activities, details of which are given below. Sustained negative cash flow could impact its growth and business in the future.
The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders 100% of the Plant & Machinery, as specified in the Objects of the Issue chapter. Any delay in procurement of such Plant & Machinery may delay the schedule of implementation and may also lead to increase in cost of these Plant & Machinery, further affecting its revenue and profitability.
The Company has entered into certain related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
The company relies on third-party suppliers for the supply of raw materials, and any delay, interruption, or reduction in such supply could adversely affect its business, results of operations, financial condition, and cash flows. Additionally, the company conduct its business activities on a purchase order basis without entering into long-term agreements with its customers.
The company business activities are exposed to fluctuations in the prices of raw materials.
Its business is subject to a variety of safety, health and environmental laws, labour, and workplace related laws and regulations. Any failure on its part to comply with these applicable laws and regulations could have an adverse effect on its operations and financial condition.
The Company is reliant on the demand from the pharmaceutical industry for a significant portion of its revenue. Any downturn in the pharmaceutical industry or an inability to increase or effectively manage its sales could have an adverse impact on the Company's business and results of operations.
Its inability to accurately forecast demand for the company products and manage its inventory may have an adverse effect on the company business, financial condition, results of operations and cash flows.
The Company has incurred indebtedness which exposes it to various risks which may have an adverse effect on the company business and results of operations.
The company is 100% dependent on third party transportation providers for delivery of raw materials to it from the company suppliers and delivery of the company products to its customers. The company has not entered into any formal contracts with its transport providers and any failure on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.
The company has not commissioned an industry report for the disclosures made in the section titled ndustry Overview' and made disclosures on the basis of the data available on the internet and such data has not been independently verified by the company.
Any reduction in the demand for its products could lead to the underutilization of the company manufacturing capacity. Its may also face surplus production of a particular product due to various reasons including inaccurate forecasting of customer requirements, which could adversely affect its business, results of operations, financial condition and cash flows.
The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate the company business, and the failures to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failures to obtain or retain them in a timely manner or at all may adversely affect its operation.
The company has issued equity shares pursuant to a bonus issue prior to the Issue, and its will be eligible to issue equity shares pursuant to a bonus issue only when the company has sufficient reserves.
Its industry is labour intensive and the company business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.
The company success significantly depends upon the services of its Promoters and other Key Managerial Personnel and the company ability to retain them. Its inability to attract, hire, train and retain key managerial personnel may adversely affect the operations of the Company.
The directors of the company don't have the experience of the listed company and the requirements of being a listed company may strain its resources.
The company faces competition in its business from both organized and unorganized sector. Such competition may have a negative impact on its business prospects, future performance and financial condition.
The company requires working capital for its smooth day-to-day operations of business and any discontinuance or its inability to acquire adequate working capital timely and on favourable terms may have an adverse effect on its operations, profitability and growth prospects.
The company could be adversely affected due to misconduct or errors of its employees that are difficult to detect and any such incidents could adversely affect its financial condition, results of operations and reputation.
Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
The company is subject to risks associated with expansion into new markets.
In addition to regular remuneration, other benefits and expense reimbursement its Promoters, Directors, key managerial personnel or senior management hold a vested interest in the Company; to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving the company, whether with themselves individually or with its group companies/entities. The Company in future may enter in related party transactions subject to necessary compliances.
Its insurance coverage may not adequately protect the company against all material hazards, which may adversely affect its business, results of operations and financial condition.
The products that the company commercialize may not perform as expected which could adversely affect its business, financial condition and results of operations.
Any variation in the utilization of its Net Proceeds as disclosed in this Draft Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders' approval.
The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".
Its Promoters and Promoter Group will continue to retain majority shareholding in it after the Issue, which will allow them to exercise significant influence over the company and potentially create conflicts of interest.
Its inability to manage growth could disrupt the company business and reduce its profitability.
Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures. Moreover, its might not sustain historical dividend levels moving forward.
There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
The rate of interest for the loans obtained by it from the banks and Financial Institutions is variable and any increase in interest rates may adversely affect its results of operations and financial condition.
Changes in technology may render its current technologies obsolete or require the company to make substantial investments.
Any delay or defaults in receipt of payments or dues from its customers could result in a reduction of the company profits.
The company has not made any alternate arrangements for financing the 'objects of the Issue'. Any shortfall in raising or meeting the same could adversely affect its growth plans, operations and financial performance.
The requirements of being a public listed company may strain its resources and impose additional requirements.
Pursuant to listing of the Equity Shares, we may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by our major shareholders may adversely affect the trading price of its Equity Shares.
There is no existing market for the company Equity Shares, and its do not know if one will develop. The company stock price may be highly volatile after the Issue and, as a result, you could lose a significant portion or all of your investment.
Investors can be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
The ability of Indian companies to raise foreign capital may be constrained by Indian law.
Any downgrading of India's debt rating by a domestic or international rating agency could adversely affect the Company's business.
Conditions in the Indian securities market and stock exchanges may affect the price and liquidity of its Equity Shares.
The requirements of being a listed company may strain its resources.
Delay in raising funds from the IPO could adversely impact the growth rate.
There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE in a timely manner, or at all.
The Company may incur penalties or liabilities for non-compliance with certain provisions of the GST Act, Income Tax and other applicable laws in previous years.
The Company has reported certain negative cash flows from its operating and investing activities, details of which are given below. Sustained negative cash flow could impact its growth and business in the future.
The company has been recently converted into public limited company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance and reputation.
All its manufacturing facilities are situated at Ambernath, Thane, Maharashtra resulting in concentration in a single region. Any interruption for a significant period, in these facilities may in turn adversely affect the company business, financial condition and results of operations.
Intense competition from the other contract manufacturers/ manufacturers in the generic and nutraceuticals space.
The company is highly dependent on its suppliers for uninterrupted supply of raw-materials. The company has not entered into any long-term supply agreement for the major raw materials required for manufacturing of its products. Also, volatility in the prices and non-availability of these raw materials may have an adverse impact in the company business prospects, results of operations and financial condition.
The availability of counterfeit drugs, such as those passed off by others as its products, and the introduction of alternative pharmaceutical products due to changes in technology or consumer needs, could adversely affect its goodwill, results of operations, financial results, and business prospects.
The company has only one Manufacturing Facility, continued operations of its manufacturing facility is critical to its business and any disruption in the operation of the company manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
Its business operations are majorly concentrated in certain geographical regions and on exports for overall revenues and any adverse developments affecting the company operations in these regions could have a significant impact on its revenue and results of operations.
Its insurance coverage may not adequately protect the company against all material hazards, which may adversely affect its business, results of operations and financial condition.
Frequent changes in its Statutory Auditors in the recent past, and any such changes in the future, could adversely impact investor confidence and may lead to regulatory scrutiny.
The company is subject to risks associated with expansion into new markets.
The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders 100% of the Plant & Machinery, as specified in the Objects of the Issue chapter. Any delay in procurement of such Plant & Machinery may delay the schedule of implementation and may also lead to increase in cost of these Plant & Machinery, further affecting its revenue and profitability.
The Company has entered into certain related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
The company relies on third-party suppliers for the supply of raw materials, and any delay, interruption, or reduction in such supply could adversely affect its business, results of operations, financial condition, and cash flows. Additionally, The company conduct its business activities on a purchase order basis without entering into long-term agreements with its customers.
Its business activities are exposed to fluctuations in the prices of raw materials.
Its business is subject to a variety of safety, health and environmental laws, labour, and workplace related laws and regulations. Any failures on its part to comply with these applicable laws and regulations could have an adverse effect on the company operations and financial condition.
The Company is reliant on the demand from the pharmaceutical industry for a significant portion of its revenue. Any downturn in the pharmaceutical industry or an inability to increase or effectively manage the company sales could have an adverse impact on the Company's business and results of operations.
Its inability to accurately forecast demand for the company products and manage its inventory may have an adverse effect on the company business, financial condition, results of operations and cash flows.
The Company has incurred indebtedness which exposes us to various risks which may have an adverse effect on its business and results of operations.
The company is 100% dependent on third party transportation providers for delivery of raw materials to it from the company suppliers and delivery of its products to its customers. The company has not entered into any formal contracts with its transport providers and any failures on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.
The company has not commissioned an industry report for the disclosures made in the section titled `Industry Overview' and made disclosures on the basis of the data available on the internet and such data has not been independently verified by it.
Any reduction in the demand for its products could lead to the underutilization of the company manufacturing capacity. Its may also face surplus production of a particular product due to various reasons including inaccurate forecasting of customer requirements, which could adversely affect its business, results of operations, financial condition and cash flows.
The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failures to obtain or retain them in a timely manner or at all may adversely affect its operation.
The company has issued equity shares pursuant to a bonus issue prior to the Issue, and its will be eligible to issue equity shares pursuant to a bonus issue only when the company has sufficient reserves.
Its industry is labour intensive and our business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.
Its success significantly depends upon the services of our Promoters and other Key Managerial Personnel and the companny ability to retain them. Its inability to attract, hire, train and retain key managerial personnel may adversely affect the operations of the Company.
The directors of the company don't have the experience of the listed company and the requirements of being a listed company may strain its resources.
The company faces competition in its business from both organized and unorganized sector. Such competition may have a negative impact on its business prospects, future performance and financial condition.
The company requires working capital for its smooth day-to-day operations of business and any discontinuance or the company inability to acquire adequate working capital timely and on favourable terms may have an adverse effect on its operations, profitability and growth prospects.
The company could be adversely affected due to misconduct or errors of its employees that are difficult to detect and any such incidents could adversely affect the company financial condition, results of operations and reputation.
Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
In addition to regular remuneration, other benefits and expense reimbursement its Promoters, Directors, key managerial personnel or senior management hold a vested interest in the Company; to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving the company, whether with themselves individually or with its group companies/entities. The Company in future may enter in related party transactions subject to necessary compliances.
The products that the company commercialize may not perform as expected which could adversely affect its business, financial condition and results of operations.
Any variation in the utilization of its Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders' approval.
The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".
Its Promoters and Promoter Group will continue to retain majority shareholding in us after the Issue, which will allow them to exercise significant influence over it and potentially create conflicts of interest.
Its inability to manage growth could disrupt the company business and reduce its profitability.
Its ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures. Moreover, The company might not sustain historical dividend levels moving forward.
There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
The rate of interest for the loans obtained by it from the banks and Financial Institutions is variable and any increase in interest rates may adversely affect the company results of operations and financial condition.
Changes in technology may render its current technologies obsolete or require it to make substantial investments.
Any delay or defaults in receipt of payments or dues from its customers could result in a reduction of the company profits.
The company has not made any alternate arrangements for financing the `Objects of the Issue'. Any shortfall in raising or meeting the same could adversely affect its growth plans, operations and financial performance.
The requirements of being a public listed company may strain its resources and impose additional requirements.
Pursuant to listing of the Equity Shares, its may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.
There is no existing market for its Equity Shares, and the company does not know if one will develop. Its stock price may be highly volatile after the Issue and, as a result, you could lose a significant portion or all of your investment.
Investors can be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
The ability of Indian companies to raise foreign capital may be constrained by Indian law.
Any downgrading of India's debt rating by a domestic or international rating agency could adversely affect the Company's business.
Conditions in the Indian securities market and stock exchanges may affect the price and liquidity of its Equity Shares.
The requirements of being a listed company may strain its resources.
Delay in raising funds from the IPO could adversely impact the growth rate.
There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE in a timely manner, or at all.

The Issue type of Asston Pharmaceuticals Ltd is Book Building - SME.

The minimum application for shares of Asston Pharmaceuticals Ltd is 2000.

The total shares issue of Asston Pharmaceuticals Ltd is 2241000.

Initial public issue of up to 22,41,000 equity shares of face value of Rs.10/- each (the "Equity Shares") of Asston Pharmaceuticals Limited ("the Company" or "APL" or "the Issuer") at an issue price of Rs. [*] per equity share for cash, aggregating up to Rs. [*] crores ("Public Isue") out of which upto 1,13,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. [*] per equity share for cash, aggregating Rs. [*] crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of upto 21,28,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. [*] per equity share for cash, aggregating upto Rs. [*] crores is herein after referred to as the "Net Issue". The public issue and net issue will constitute 26.33 % and 25 %, respectively of the post-issue paid-up equity share capital of the company. Price Band: Rs. 115 to Rs. 123 per equity share of face value of Rs. 10 each. The floor price is 11.5 times of the face value and the cap price is 12.3 times of the face value. Bids can be made for the minimum of 1000 equity shares and in multiples of 1000 equity shares thereafter.

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