Accretion Pharmaceuticals IPO - Check Issue Date, Price, Allotment Status

Accretion Pharmaceuticals Limited, a prominent player in the pharmaceutical sector, is set to launch its Initial Public Offering (IPO) on May 14, 2025. The IPO, aimed at raising approximately ₹29.75 crores, is a significant milestone for the Ahmedabad-based company known for manufacturing and marketing a diverse range of healthcare products. This article provides a comprehensive overview of the Accretion Pharmaceuticals IPO, including its dates, price band, allotment details, financial performance, and investment considerations.

Accretion Pharmaceuticals IPO Details

The Accretion Pharmaceuticals IPO is a Book Built Issue comprising a fresh issue of 29.46 lakh equity shares with a face value of ₹10 each. There is no offer-for-sale component in this IPO. The issue is designed to list on the NSE SME platform, with a tentative listing date of May 21, 2025.

Accretion Pharmaceuticals IPO Important Dates

Key IPO Details:

• IPO Open Date: May 14, 2025
• IPO Close Date: May 16, 2025
• Issue Size: ₹29.75 Crores (29,46,000 shares)
• Fresh Issue: ₹29.75 Crores (29,46,000 shares)
• Face Value: ₹10 per equity share
• Price Band: ₹96 to ₹101 per share
• Lot Size: 1,200 shares
• Minimum Investment (Retail): ₹1,21,200 (1 lot at the cutoff price)
• Minimum Investment (HNI): ₹2,42,400 (2 lots, 2,400 shares)
• Market Maker Portion: 1,47,600 shares (Gretex Share Broking Private Limited)

IPO Reservation:

• Qualified Institutional Buyers (QIB): Not more than 50% of the Net Issue
• Non-Institutional Investors (NII/HNI): Not more than 15% of the Net Issue
• Retail Investors: Not less than 35% of the Net Issue

IPO Timeline (Tentative):

• IPO Opens: Wednesday, May 14, 2025
• IPO Closes: Friday, May 16, 2025
• Basis of Allotment: Monday, May 19, 2025
• Initiation of Refunds: Tuesday, May 20, 2025
• Credit of Shares to Demat: Tuesday, May 20, 2025
• Listing Date: Wednesday, May 21, 2025
• UPI Mandate Confirmation Cut-off: 5:00 PM on May 16, 2025

Investors can apply through the ASBA (Application Supported by Blocked Amount) process via their bank’s net banking, UPI through registered brokers, or offline forms submitted through stockbrokers. The IPO is managed by Jawa Capital Services Private Limited as the book-running lead manager, with Kfin Technologies Limited as the registrar.

About Accretion Pharmaceuticals Limited

Founded in 2012, Accretion Pharmaceuticals Limited is a pharmaceutical company based in Ahmedabad, Gujarat. It specialises in the manufacturing and marketing of tablets, capsules, oral liquids, external preparations (such as ointments, creams, and gels), and oral powders (sachets and dry syrups). The company also provides contract manufacturing services for other brands under license agreements.

Key Highlights

• Global Presence: Accretion Pharmaceuticals has established a footprint in over 20 countries, including Africa, Southeast Asia, and the Middle East.
• Certifications: The company holds ISO 9001:2015, ISO 14001:2015, and ISO 22000:2005 certifications, underscoring its commitment to quality and environmental standards.
• Manufacturing Facility: Located in Sanand, Ahmedabad, the facility supports the production of a wide range of pharmaceutical and healthcare products.
• Workforce: As of January 2025, the company employs 83 staff, including 4 executive directors.

Product Portfolio

• Tablets and Capsules: Antibiotics, anti-inflammatory, pain management, cardiovascular, and gastrointestinal medicines.
• Oral Liquids and Syrups: Respiratory, pediatric, and digestive treatments.
• External Preparations: Medicated lotions, gels, ointments, and dusting powders for dermatological care.
• Ayurvedic and Herbal Products: Natural wellness solutions for immunity, digestion, and general health.

Competitive Strengths

• Experienced promoters and management team.
• Long-standing relationships with clients and suppliers.
• Strong focus on quality products.
• Robust supply chain and customer goodwill.

Financial Performance

Accretion Pharmaceuticals has shown significant financial growth in recent years, particularly in FY24 and the nine months ending December 31, 2024. Below is a summary of its restated consolidated financials

Key Performance Indicators (KPI’s)

• Market Capitalisation: ₹112.27 Crores
• Return on Equity (ROE): 72.47%
• Return on Capital Employed (ROCE): 36.73%
• Debt/Equity Ratio: 2.52
• Return on Net Worth (RoNW): 72.47%
• PAT Margin: 11.51%
• Price to Book Value: 7.55
• Earnings Per Share (EPS):
  • Pre-IPO: ₹4.74
  • Post-IPO: ₹6.28
• Price-to-Earnings (P/E) Ratio:
  • Pre-IPO: 21.29
  • Post-IPO: 16.08

The company’s revenue grew by 14.9% from ₹29.53 crores in FY23 to ₹33.94 crores in FY24, while its profit after tax surged from ₹0.10 crores to ₹3.88 crores in the same period. For the nine months ended December 31, 2024, the company reported a revenue of ₹35.75 crores and a PAT of ₹5.24 crores, indicating strong growth momentum. However, the sharp increase in profitability raises questions about sustainability, particularly given the company’s focus on contract manufacturing, which typically yields lower margins.

Objectives of the IPO

The net proceeds from the Accretion Pharmaceuticals IPO will be utilised for the following purposes:

These investments are aimed at enhancing the company’s manufacturing capabilities, reducing debt, and supporting operational growth.

Accretion Pharmaceuticals Limited GMP (Grey Market Premium)

As of May 13, 2025, the unlisted shares of Accretion Pharmaceuticals were trading flat at ₹101 in the grey market, aligning with the upper price band. The GMP has not yet gained significant traction, suggesting muted investor enthusiasm in the unofficial market.

Things to Consider Before Applying the IPO

Positives:

• Strong revenue and profit growth in FY24 and 9M FY25.
• Established presence in over 20 countries.
• Diverse product portfolio and certifications for quality.
• Experienced management and robust supply chain.

Risks:

• Sharp profit growth may not be sustainable, especially in the low-margin contract manufacturing segment.
• Aggressive pricing of the IPO relative to financials.
• Potential impact of external factors, such as U.S. policies on drug pricing, which have raised concerns in the Indian pharmaceutical sector.

Given the financial performance and analyst feedback, the IPO may be suitable for long-term investors with a high risk appetite. Retail investors should carefully evaluate the fundamentals and market conditions before applying.

How to Apply for Accretion Pharmaceuticals IPO

Investors can apply for the Accretion Pharmaceuticals IPO through the following methods.

• Online ASBA: Use your bank’s net banking platform to apply via the ASBA process.
• UPI: Apply through UPI using a registered broker or trading app.
• Offline: Submit a physical application form through your stockbroker.

Steps to Apply via Broker:

• Log in to your stockbroker.
• Go to the IPO section in your stockbroker app or website.
• Select “Accretion Pharmaceuticals IPO” and click “Bid.”
• Enter your UPI ID, quantity (minimum 1,200 shares), and price (preferably the cutoff price of ₹101).
• Submit the application and confirm the UPI mandate by 5:00 PM on May 16, 2025.

Allotment Status:

The allotment status can be checked on the Kfin Technologies Limited website after May 19, 2025, once the registrar releases it. You will also receive the allotment status via mail, whether you have allotted shares or not.

Company Contact Details

Accretion Pharmaceuticals Limited

29 Xcelon Ind Park 1, Behind Intas Pharmaceuticals,

Vasna Chacharvadi, Sanand, Ahmedabad, Gujarat 382213, India

Phone: +91-97148 82929

Email: compliance@accretionpharma.com

Registrar:

Kfin Technologies Limited

Phone: +91-40-67162222

Email: apl.ipo@kfintech.com

Conclusion

The Accretion Pharmaceuticals IPO presents an opportunity for investors to participate in a growing pharmaceutical company with a global presence and a diverse product portfolio. While the company’s financial growth is impressive, concerns about the sustainability of its profitability and the aggressive pricing of the IPO warrant caution. Long-term investors with a thorough understanding of the pharmaceutical sector and market dynamics may find this IPO appealing, but retail investors should approach it with careful consideration.

For detailed information, refer to the Accretion Pharmaceuticals IPO Red Herring Prospectus (RHP) available on the company’s website or through the registrar. Stay updated on subscription status and grey market trends to make an informed investment decision.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. Investors are advised to conduct their own research and consult financial advisors before making investment decisions.

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