Asston Pharmaceuticals Ltd IPO

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.

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.