Astron Multigrain BSE SME IPO review (Not Rated)

•    The company is in the business of manufacturing and marketing of instant noodles for B2B segment.
•    It primarily does contract manufacturing for Gokul Snacks Pvt. Ltd.
•    It is also marketing noodles under own brand name “Astron’s Swagy Noodles”.
•    The company marked steady growth in its top and bottom lines for the reported periods.
•    Based on its recent financial data, the issue appears fully priced.
•    Well-informed/cash surplus investors may park moderate funds for medium term.

ABOUT COMPANY:
Astron Multigrain Ltd. (AML) is into manufacturing of instant noodles. The company manufactures noodles on contract manufacturing basis for Gokul Snacks Private Limited who sells the product manufactured by it under their trade name. It also manufactures noodles for own brand sales which is sold under trade name “Astron’s Swagy Noodles”. Its instant noodles are available in one variant –Mast Masala (Classic flavour). The Company is also engaged in manufacturing of noodle bhujiya and papad. Instant Noodles are pre-cooked noodles, sold in dried blocks with flavoring powder and/or seasoning oil. The “instant” aspect comes from the fact that they only require hot water to rehydrate and cook, significantly reducing preparation time compared to traditional noodles. Ready to eat noodles are making a niche for itself based on its popularity for being tasty and quick to make.

AML currently operates through its Registered Office and manufacturing unit set up located at Plot No. 17 To 21, Near Ram Hotel Village: Chordi, Gondal, Rajkot, Gujarat -360311, India with an installed capacity of 5110 MTA, where the production of its products consisting of instant noodles, noodle bhujiya and papad are carried out. Its manufacturing unit is accredited with FSSAI license under Food Safety and Standards Act, 2006. 

Its in-house manufacturing enables the company to minimize production time, bring cost effectiveness, have an effective control over every stage of manufacturing process that allows continuous monitoring of its product’s quality. AML markets and sells its products in B2B segment majorly in the states of Gujarat, Madhya Pradesh, Maharashtra and Bihar. Its products are sold to Super Stockiest who supplies to the wholesalers and further the same is distributed among retailers. As of October 31, 2025, it had 15 employees on its payroll. It also hires contract labourers as and when needed.

ISSUE DETAILS:
The company is coming out with its maiden combo IPO of 2920000 equity shares of Rs. 10 each at a fixed price of Rs. 63 per share to mobilize Rs. 18.40 cr.  The IPO comprises of 2340000 fresh equity shares worth Rs. 14.74 cr. and an Offer for Sale of 580000 equity shares worth Rs. 3.65 cr. The issue opens for subscription on December 01, 2025, and will close on December 03, 2025. Post allotment, shares will be listed on BSE SME. The minimum application to be made is for 4000 shares and in multiples of 2000 shares thereon, thereafter. The issue constitutes 33.95% of the post-IPO paid-up capital of the company. The company is spending Rs. 2.00 cr. for this IPO process, and from the net proceeds, it will utilize Rs. 4.46 cr. for capex on purchase of machinery, Rs. 5.65 cr. for working capital, and Rs. 2.13 cr. for general corporate purposes. 

The IPO is solely lead managed by Finaax Capital Advisors Pvt. Ltd., while Bigshare Services Pvt. Ltd., is the registrar to the issue. Prabhat Financial Services Ltd. is the market maker.

After issuing initial equity capital at par value, the company issued further equity shares at a fixed price of Rs. 50 per share in May and June 2023. It has also issued bonus shares in the ratio of 2 for 1 in October 2023. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 3.93 and Rs. 24.20 per share.  

Post-IPO, company’s current paid-up equity capital of Rs. 6.26 cr. will stand enhanced to Rs. 8.60 cr. Based on the IPO pricing, the company is looking for a market cap of Rs. 54.18 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income / net profit, of Rs. 19.50 cr. / Rs. 1.24 cr. (FY23), Rs. 26.51 cr. / Rs. 1.98 cr. (FY24), Rs. 33.92 cr. / Rs. 2.31cr. (FY25). For 7M of FY26 ended on October 31, 2025, it posted a net profit of Rs. 2.11 cr. on a total income of Rs. 23.58 cr. It posted steady growth in its top and bottom lines for the reported periods. 

For the last three fiscals, the company has posted an average EPS of Rs. 3.32, and an average RoNW of 24.45%. The issue is priced at a P/BV of 3.12 based on its NAV of Rs. 20.17 per share as of October 31, 2025, and at a P/BV of 1.98 based on its post-IPO NAV of Rs. 31.82 per share. 

If we attribute annualized super earnings of FY26 on post-IPO paid-up capital, then the issue price is at a P/E of 14.89, and based on its FY25 earnings, the P/E stands at 23.51. Thus, the issue appears fully priced. 

For the reported periods, the company has posted PAT margins of 6.36% (FY23), 7.66% (FY24), 6.80% (FY25), 8.97% (7M-FY26), and RoCE margins of 20.32%, 19.36%, 23.73%, 18.85% respectively for the referred periods. 

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects. 

COMPARISON WITH LISTED PEERS:
As per offer document, the company has shown Hindustan Unilever, Patanjali Foods, and Marico Ltd., as its listed peers. They are currently trading at a P/E of 53.9, 43.3, and 57.2 (as of November 26, 2025). However, they are not truly comparable on an apple-to-apple basis. This comparison is nothing but an eyewash.

MERCHANT BANKER’S TRACK RECORD:
This is the 2nd mandate from Finaax Capital in the ongoing fiscal. The only listing took place so far has opened with premium of 14.14% on the day of listing.