Astec Lifesciences Unveils ₹250 Crore Rights Issue at ₹890 Per Share—Investors Eye Revival Amid Sector Headwinds

Astec Lifesciences Ltd, a leading agrochemical manufacturer and subsidiary of Godrej Agrovet, has set the stage for a significant capital infusion by announcing a rights issue priced at ₹890 per share. The board approved raising up to ₹250 crore through this fully paid equity rights issue, aiming to strengthen the company’s balance sheet and support its expansion and debt reduction plans.

 

Key Highlights:

 

Rights Issue Details: The board has approved the issue of fully paid-up equity shares at ₹890 each, with the total fundraising capped at ₹250 crore. The entitlement ratio, record date, and other specifics will be finalized and communicated in due course.

 

Shareholder Opportunity: The rights issue will be open exclusively to existing shareholders as of the record date, allowing them to purchase additional shares at a price set below recent market highs—Astec shares surged over 7% to trade at ₹821.5 following the announcement, reflecting strong investor interest.

 

Use of Proceeds: The capital raised will primarily be used for prepayment or repayment of certain outstanding borrowings and for general corporate purposes, signaling a focus on deleveraging and operational stability.

 

Financial Context: Despite a challenging Q4 FY25—where Astec reported a net loss of ₹16.08 crore and a 22% year-on-year revenue decline—the company’s stock has rebounded 20% over the past month, though it remains down 17% year-to-date.

 

Strategic Outlook: Astec Lifesciences continues to diversify its product portfolio and expand its global footprint, exporting to 24 countries and operating four manufacturing facilities, including a new greenfield herbicide plant.

 

This rights issue is seen as a pivotal move to restore financial health and fuel future growth, as Astec positions itself for a turnaround in the competitive agrochemical sector.

 

Source: CNBC-TV18, Business Standard, Moneycontrol