Astron Multigrain Limited Makes Weak Debut with 20.00% Decline, Lists at ₹50.40 Against Poor Subscription

Astron Multigrain Limited, a manufacturer of instant noodles operating through contract manufacturing for Gokul Snacks Private Limited and own brand manufacturing under Astron's Swagy Noodles available in Mast Masala flavor, also producing noodle bhujiya and papad through FSSAI licensed manufacturing facility in Gondal with 5,110 MTA installed capacity, made a weak debut on BSE SME on December 8, 2025. After closing its IPO bidding between December 1-3, 2025, the company commenced trading with a decline of 20.00% opening at ₹50.40 and touched ₹50.40 (down 20.00%).

Astron Multigrain Limited Listing Details

Astron Multigrain launched its IPO at ₹63 per share with minimum investment of 4,000 shares costing ₹2,52,000. The IPO received poor response with subscription of 1.22 times - individual investors at 1.94 times, NII at 0.50 time.

First-Day Trading Performance

Listing Price: Astron Multigrain opened at ₹50.40 representing decline of 20.00% from issue price of ₹63.00, touched high of ₹50.40 (down 20.00%) and low of ₹47.88 (down 24.00%), with VWAP at ₹49.39, reflecting severe market rejection despite steady growth trajectory.

Growth Drivers and Challenges

Growth Drivers:

Steady Financial Growth: Revenue increased 28% and PAT rose 16% between FY24 and FY25, solid ROE of 24.66%, ROCE of 23.73%, RoNW of 21.95%, PAT margin of 6.80%, EBITDA margin of 11.98% demonstrating consistent operational performance.

Dual Business Model: Contract manufacturing for established player Gokul Snacks providing stable revenue base, own brand Astron's Swagy Noodles offering growth potential and higher margins, diversification into noodle bhujiya and papad expanding product portfolio.

Infrastructure and Market Presence: FSSAI licensed manufacturing facility in Gondal with 5,110 MTA capacity, widespread sales and distribution network through super stockists, wholesalers, and retailers across four states, experienced promoters and management team, affordable pricing strategy.

Challenges:

Contract Manufacturing Dependence: Despite 79.82% revenue from own brand in FY25, heavy reliance on contract manufacturing for Gokul Snacks creating client concentration risk, limited bargaining power, and vulnerability to client relationship changes.

Poor Market Reception: Severe listing decline of 20.00%, extremely weak subscription of 1.22 times with NII at just 0.50 times indicating minimal institutional interest, analyst review suggests issue appears fully priced despite modest scale and limited brand recognition.

Utilisation of IPO Proceeds

Capacity Expansion: ₹4.46 crore for funding capital expenditure towards purchase of machinery enhancing manufacturing capacity and operational efficiency to meet growing demand from contract manufacturing and own brand segments.

Working Capital: ₹5.65 crore for meeting working capital requirements supporting raw material procurement, inventory management, and business operations across manufacturing and distribution activities, plus general corporate purposes.

Financial Performance

Revenue: ₹33.92 crore for FY25, growth of 28% from ₹26.51 crore in FY24, reflecting expanding contract manufacturing volumes for Gokul Snacks and growing acceptance of Astron's Swagy Noodles brand across target markets in four states.

Net Profit: ₹2.31 crore in FY25, growth of 16% from ₹1.98 crore in FY24, demonstrating operational leverage though profit growth slower than revenue expansion.

Financial Metrics: Solid ROE of 24.66%, ROCE of 23.73%, debt-to-equity of 0.41, RoNW of 21.95%, PAT margin of 6.80%, EBITDA margin of 11.98%, price-to-book of 3.75x, post-issue EPS of ₹4.21, P/E of 14.95x, net worth of ₹10.51 crore, total borrowings of ₹4.28 crore, and market capitalisation of ₹41.18 crore.