Shares of Astec LifeSciences ended at Rs 83.90 on the BSE, a premium of just 2.30% over the initial public offer price of Rs 82.

The stock debuted at Rs 85.55, a 4.30% premium over the initial public offer (IPO) price. Around 1.22 crore shares were traded on the Astec LifeSciences counter on the BSE. The stock hit a high of Rs 90.70 and a low of Rs 80.

The current stock price of Rs 83.90 discounts the company's year ended March 2009 earnings per share (EPS) of Rs 6.30, by a PE multiple of 13.31.

The company entered the capital market on 29 October 2009 with an IPO of 75 lakh equity shares of Rs 10 each and a price band of Rs 77 to Rs 82 per equity share.

The issue, which was made through a 100% book building process, was oversubscribed 1.56 times. The company garnered bids for 1.17 crore shares as against 75 lakh shares on offer.

Portion reserved for non institutional investors was subscribed 2.99 times while the retail individual investors category saw 2.35 times subscription. The qualified institutional buyers and portion reserved for employees saw subscription of 0.60 and 0.50 times respectively.

Astec Lifesciences 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.

The objective of the IPO was to raise funds for the company's expansion plans for its production and research and development units in Maharashtra.

Astec plans to expand the production capacity of its unit in Mahad from the current 2,800 metric tonnes to 3,950 metric tonnes.

The company will also upgrade its research and development facility at Dombivli, Mumbai that would enable it to carry out research on more complex molecules and to undertake contract research activities.

The proceeds of the IPO would also be utilised to register two products in Brazil and six products in the country.

Astec Lifesciences reported a net profit of Rs 10.72 crore on sales of Rs 84.41 crore in the year ended March 2009.