A specialty chemicals stock, known for its agrochemicals and global B2B exports, jumped over 8% during the Tuesday session after the board approved a Rs 250 crore rights issue plan.
With the market capitalization of Rs 1,612 Crores, the shares of Astec LifeSciences Ltd jumped up to 10% making an intraday day high of Rs 838.85 per share from its previous closing price of Rs 765.70 per share.
Astec LifeSciences Ltd, has approved raising up to Rs 250 crore through a rights issue of fully paid-up equity shares of Rs 10 each. The issue will be offered to eligible shareholders as on the record date, which will be announced later.
Key terms such as the issue price, entitlement ratio, and payment schedule will be finalised by the board or a designated committee, subject to necessary approvals and regulatory compliance.
A rights issue is a way for a company to raise money by offering additional shares to its existing shareholders. These shares are usually offered at a discounted price and in a specific ratio (e.g., 1 new share for every 4 held).
Shareholders can choose to buy these shares, ignore the offer, or sell their rights to someone else. It helps the company raise funds while giving current shareholders a chance to maintain their ownership percentage.
Astec LifeSciences, established in 1994 and acquired by Godrej Agrovet in 2015, is a B2B agrochemical company. It manufactures active ingredients, intermediates, and formulations, and exports to over 24 countries.
In the last five years, the company has shifted focus to CDMO services, investing $45 million in new R&D and manufacturing facilities. Its plants in Mahad and R&D centre in Rabale, Maharashtra, are equipped with modern technology, zero-liquid discharge systems, and follow global safety standards like Dupont’s PSM.
The company reported a revenue of Rs 381 crore in FY25, down by 16.8 percent from its FY24 revenue of Rs 458 crore.The loss widened from Rs 47 crore in FY24 to Rs 135 crore in FY25, marking a rise of 187 percent year-on-year and the Promoter holding has increased by 4.12 percent over last quarter to 70.87 percent.
Written By Rohan Pandey
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
