Astec Lifesciences approves rights issue worth ₹250 crore, shares gain for third straight day

Shares of Astec Lifesciences Ltd. surged as much as 7% on Tuesday, June 24, after the company announced that its Board of Directors approved the issue of fully paid-up equity shares of the company with a face value of ₹10 through a rights issue.

Astec Lifesciences is a subsidiary of Godrej Agrovet.

The company intends to raise up to ₹250 crore through the rights issue process. Record date for the rights issue, its entitlement ratio and other aspects of the rights issue will be determined at a later date.
A rights issue is a fund raising exercise where the company offers existing shareholders a chance to buy shares of the company at a discounted price. Shareholders who do not have shares of the company as on the record date, are not eligible to participate in the rights issue.

In the March quarter results, Astec Lifesciences consolidated net loss increased to ₹16.08 crore in Q4 FY25 as against a net loss of ₹0.96 crore in the same quarter last year. Its topline also declined by 22% on a year-on-year basis.

Shares of Astec Lifesciences are trading 7.5% higher on Tuesday at ₹821.5. The stock has risen 20% in the last one month. Despite this, shares are 17% lower on a year-to-date basis.

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