Initial public offering (IPO) of Astec LifeSciences has been subscribed 43% on day 3. A total of 3.23 million bids were obtained out of which 1.27 million bids were obtained at cut-off price.

Qualified institutional buyers led the subscription race which was 0.52 times. This was followed by retail investors who subscribed 0.49 times. There was no subscription obtained from non-institutional investors. The issue closes on Nov 04, 2009. The price band of the issue has been fixed at Rs 77-82 for each equity share.

Issue Details:

The issue is of 7.5 million equity shares of Rs 10 each for cash at a price to be decided by 100% book building process.

The issue also comprises a reservation of 100,000 equity shares for subscription by eligible employees at the issue price, and net issue of 7.4 million equity shares. The issue constitutes 44.30% of the fully diluted post issue paid-up capital of the company.

Almondz Global Securities, IDBI Capital Market Services and Bigshare Services (P) are helping the company in the fund raising process.

The equity shares are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange of India. Credit rating agency CARE has assigned IPO Grade 2, indicating below average fundamentals.

About the Company:

The company 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.

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.

Expansion Plan:

The money raised through the public issue will be used for expansion of existing manufacturing facilities at Mahad, Maharashtra; expansion of existing research and development facility at Dombivli, Maharashtra; meeting registration expenses and meeting long-term working capital requirements.

greyBlog