Astec LifeSciences IPO: Astec IPO Review

A new IPO is expected to hit the Indian markets very soon. The Initial Public offering or the IPO belongs to agrochemicals and pharmaceuticals manufacturing company named Astec LifeSciences Limited.

What is the expected size of the Astec LifeSciences IPO?
Though the exact size of Astec LifeSciences IPO is not disclosed, but it is expected to be in Crores.

What is the primary business valuation of Astec LifeSciences IPO?
Astec is engaged in the manufacture and sale of active ingredients, intermediates and formulations for agrochemicals and pharmaceutical segment. Astec LifeSciences Ltd was established in 1994 with a focus on the Pharmaceutical and Agrochemical Industries. Astec is a part of a group of companies with more than 20 years experience in the development and production of intermediates and active ingredients. Astec has an unshakeable reputation for providing world quality products to meet global standards.
As per their website, Astec is proud of its rich experience of over two decades in the chemical industry. Astec employs highly qualified and trained personnel to monitor and maintain its manufacturing activities as well as process development work. The company prides itself in being responsive, reliable and quick to implement projects.

At the same time we ensure high levels of confidentiality in implementing new projects thereby providing an excellent customized manufacturing service option to our clients at extremely competitive costs.

A strong R&D focus has enabled the company to introduce a number of unique products. As the operations are highly integrated both vertically and horizontally, Astec has a very efficient, low cost structure in the market place.

Strong emphasis on Quality, backed by a highly competent technical team, has enabled Astec to establish a successful track record in nurturing stable and long term relationships with highly reputed companies in USA, Japan and Europe.

Where will the fund raised from Astec LifeSciences IPO be used?
The fund raised from Astec LifeSciences IPO will be used to expand existing manufacturing facilities at Mahad, Maharashtra and also the existing Research and Development facility at Dombivli, Maharashtra. The IPO proceeds will also be used to meet registration expenses and long-term working capital requirements.

How many shares will be sold through the Astec LifeSciences IPO?
A total of 75,00,000 Equity shares will be sold through the Astec LifeSciences IPO.

What is the price band or price range of Astec LifeSciences IPO?
The final price of Astec LifeSciences IPO will be decided by the 100% book-building process, the price band will be confirmed at a later date. The face value of each share of Astec LifeSciences IPO is the standard Rs. 10 per share.

Any other information available about Astec LifeSciences IPO?
The Company started manufacturing operations with an installed capacity of 120 MT in 1994 and at present has the capacity of 2500 MT per annum. It proposes to expand it to 3650 MT with an investment of Rs 31.24 crores. It also proposes to expand Research and Development facility with an investment of Rs 2.46 crores.

Under the Agrochemical segment, Astec LifeSciences Limited manufacture active ingredients, intermediates and formulations and under Pharmaceutical segment it produces intermediates for Active Pharma Ingredients (API) manufacturers. Some of the domestic clients of the Company are Indofil Chemicals, Krishi Rasayan, Atul Limited a Syngenta, Biostadt India Limited and United Phosphorous Limited. Among the major international clients are An Nong Company Ltd, Nufarm UK Ltd, Handelsgesellschaft Detlef Von Appen and Irvita Plant Protection N.V. The Company’s total income for FY 2008 was Rs 61.18 crores and net profit was Rs 8.07 crores as against total income of Rs 33.56 crores and net profit of Rs 3.70 crores in FY 2007.

Almondz Global Securities Limited is the Book Running Lead Manager for the Issue.