Accretion Pharmaceuticals IPO is a book-built issue worth ₹29.75 crore. The IPO consists entirely of a fresh issue of 29.46 lakh shares. The IPO opens for subscription on May 14, 2025, and will close today on May 16, 2025. Allotment is expected to be finalised on May 19, 2025, with tentative listing on the NSE SME platform scheduled for May 21, 2025.
The IPO price is at a price band of ₹96 - ₹101 per share. Retail investors must apply for a minimum of 1 lot comprising 1,200 shares, requiring an investment of ₹1,21,200 at the cutoff price. HNI investors are required to apply for at least 2 lots (2400 shares), amounting to ₹2,42,400.
Jawa Capital Services Private Limited is the book-running lead manager for this issue, while Kfin Technologies Limited is the registrar. The market maker is Gretex Share Broking Private Limited.
For detailed financials, company background, and risk factors, investors are advised to refer to the Accretion Pharmaceuticals IPO RHP.
Industry Outlook
- The Indian pharmaceutical industry is a major player globally, expected to reach $130 billion by 2030, driven by innovation and biopharmaceutical manufacturing capabilities.
- Programs like the Production Linked Incentive (PLI) scheme aim to boost domestic production and reduce import dependency, supporting industry growth.
- The sector is seeing significant technological improvements, enhancing automation, efficiency, and process optimization in manufacturing and quality control.
- Despite advancements, the industry faces challenges such as import dependency for certain APIs, infrastructure needs, and the necessity for continuous innovation and skill development.
Accretion Pharmaceuticals IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
- Enhance manufacturing capabilities across product lines such as tablets, capsules, oral liquids, and external preparations.
- Scale up production to meet both domestic and international demand, thereby enhancing contract manufacturing services.
- Ensure compliance and improvement in quality standards in line with ISO 9001:2015, ISO 14001:2015, and ISO 22000:2018 certifications.
- Address working capital requirements, marketing efforts, and strategic initiatives for market expansion across more than 20 countries.
About Accretion Pharmaceuticals Limited
Accretion Pharmaceuticals Limited was originally incorporated as a partnership firm named M/s Accretion Pharmaceuticals on December 18, 2012, under the Partnership Act, 1932. The firm was subsequently converted into a public limited company on November 29, 2023, and renamed Accretion Pharmaceuticals Limited.
The company is engaged in the manufacturing and marketing of a wide range of pharmaceutical products, including tablets, capsules, oral liquids, external preparations (such as ointments, creams, gels, lotions, medicated shampoos, mouthwash, and dusting powders), and oral powders (sachets and dry syrups).
Accretion Pharmaceuticals also provides contract manufacturing services, producing various pharmaceutical products for different marketers on a loan license or contract manufacturing basis. The company operates on a principal-to-principal basis with multiple corporate clients, catering to both domestic and international markets.
The company's operations are supported by a state-of-the-art manufacturing facility located at 29 Xcelon Ind Park 1, B/h, Intas Pharmaceuticals, Vasna Chacharvadi, Ahmedabad, Sanand, Gujarat, India. Accretion Pharmaceuticals is ISO 9001:2015, ISO 14001:2015, and ISO 22000:2018 certified, ensuring high-quality standards in its manufacturing processes.
Through this IPO, Accretion Pharmaceuticals aims to fund capital expenditure for the purchase of new equipment and machinery, upgrade its existing manufacturing facility, repay certain borrowings, and strengthen its working capital position. Additionally, the company plans to invest in general corporate purposes, including marketing efforts and strategic initiatives for market expansion across more countries.
How To Check the Allotment Status of the Accretion Pharmaceuticals IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Accretion Pharmaceuticals IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Accretion Pharmaceuticals IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Accretion Pharmaceuticals IPO
Registered office: 29 Xcelon Ind Park 1, B/h, Intas Pharmaceuticals, Vasna Chacharvadi, Ahmedabad, Sanand, Gujarat, India, 382213.
Phone: +91 97148 82929
E-mail:compliance@accretionpharma.com
Accretion Pharmaceuticals IPO Reservation
|
Investor Category |
Shares Offered |
|
Anchor Investor Shares Offered |
2,11,200 (7.17%) |
|
Market Maker Shares Offered |
1,47,600 (5.01%) |
|
QIB Shares Offered |
1,41,600 (4.81%) |
|
NII (HNI) Shares Offered |
12,22,800 (41.51%) |
|
Retail Shares Offered |
12,22,800 (41.51%) |
|
Total Shares Offered |
29,46,000 (100%) |
Accretion Pharmaceuticals IPO Anchor Investors Details
|
Bid Date |
May 13, 2025 |
|
Shares Offered |
2,11,200 |
|
Anchor Portion Size (In Cr.) |
2.13 |
|
Anchor lock-in period end date for 50% shares (30 Days) |
June 18, 2025 |
|
Anchor lock-in period end date for remaining shares (90 Days) |
August 17, 2025 |
Accretion Pharmaceuticals IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
1200 |
₹1,21,200 |
|
Retail (Max) |
1 |
1200 |
₹1,21,200 |
|
HNI (Min) |
2 |
2400 |
₹2,42,400 |
Accretion Pharmaceuticals IPO Promoter Holding
The promoters of the company are Mr. Mayur Popatlal Sojitra, Mr. Harshad Nanubhai Rathod, Mr. Vivek Ashok Kumar Patel and Mr. Hardik Mukundbhai Prajapati.
|
Share Holding Pre-Issue |
100.00% |
|
Share Holding Post Issue |
73.48% |
Key Performance Indicators for Accretion Pharmaceuticals IPO
As of March 31, 2024, the market capitalisation of Accretion Pharmaceuticals is ₹353.13 crore. Here are the KPIs of Accretion Pharmaceuticals:
|
KPI |
Value |
|
EBITDA Margin (%) |
23.06 |
|
PAT Margin (%) |
11.51 |
|
Return on Equity (%) |
72.47 |
|
Return on Capital Employed (%) |
36.73 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
4.74 |
6.28 |
|
P/E (x) |
21.29 |
16.08 |
Note: The Pre IPO EPS is calculated based on pre-issue shareholding as of the date of RHP and the latest FY earnings as of March 31, 2024, that is available in RHP.
The post-issue EPS is calculated based on the post-issue shareholding and annualised FY earnings of December 31, 2024, that are available in RHP.
Accretion Pharmaceuticals IPO Prospectus
Accretion Pharmaceuticals IPO Registrar and Lead Managers
Accretion Pharmaceuticals IPO Lead Managers
- Jawa Capital Services Private Limited
Registrar for Accretion Pharmaceuticals IPO
Kfin Technologies Limited
- Contact Number: 04079611000
- Email Address: ipo@kfintech.com
Accretion Pharmaceuticals IPO Registrar
Financial Performance of Accretion Pharmaceuticals Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Gross Profit Margin (%) | 35.81 | 20.54 | 21.23 |
| EBITDA Margin (%) 23.06 7.28 8.66 | 23.06 | 7.28 | 8.66 |
| PAT Margin (%) | 11.51 | 0.35 | 0.35 |
| Return on Equity (ROE) (%) | 72.47 | 2.70 | 2.57 |
| Return on Capital Employed (ROCE) | 36.73 | 9.87 | 10.49 |
| Return on Assets (ROA) (%) | 14.33 | 0.50 | 0.45 |
| Working Capital Days | 145 | 79 | 73 |
Know before investing
Strengths
8Manufacturing a wide range of pharmaceutical products including tablets, capsules, oral liquids, and external preparations.
Established relationships with multiple corporate clients for contract manufacturing and loan license production.
ISO 9001:2015, ISO 14001:2015, and ISO 22000:2018 certifications ensuring high-quality standards in manufacturing processes.
Manufacturing facility located in Ahmedabad, Gujarat, a hub for pharmaceutical industries, providing logistical advantages.
Plans to invest in new equipment and machinery to enhance automation, efficiency, and production capacity.
Benefiting from government initiatives like the Production Linked Incentive (PLI) scheme aimed at boosting domestic pharmaceutical production.
Expanding market reach to over 20 countries, leveraging strong export capabilities and compliance with international standards.
Strong financial performance with consistent revenue growth and profitability, positioning the company for future expansion and market opportunities.
Risks
8Failure to comply with stringent regulatory requirements in India and international markets could lead to legal actions and financial penalties.
Significant revenue is derived from a few key customers; losing any of them could adversely impact financial performance.
The business requires substantial working capital; any shortfall could affect operations and growth.
Exposure to foreign exchange rate fluctuations could impact profitability, given the significant portion of revenue from exports.
Dependence on third-party suppliers for raw materials; any disruption could affect production and delivery schedules.
Rapid technological changes in the pharmaceutical industry could render existing processes and equipment obsolete.
Any failure in maintaining quality standards could lead to product recalls, legal liabilities, and damage to reputation.
Economic downturns or political instability in key markets could adversely affect demand for products and overall business operations.
Accretion Pharmaceuticals Limited Peer Details Comparison
| Company Name | EPS (₹) | P/E Ratio | RoNW (%) | Net Asset Value (₹) |
|---|---|---|---|---|
| Accretion Pharmaceuticals Ltd | 8.74 | 10.98 – 11.56 | 38.54 | 17.09 |
| Sakar Healthcare Ltd | 5.64 | 48.89 | 4.45 | 120.65 |
| Lincoln Pharmaceuticals Ltd | 46.58 | 12.3 | 15.74 | 295.98 |
| Sotac Pharmaceuticals Ltd | 5.24 | 23.85 | 11.91 | 43.69 |
