Accretion Pharmaceuticals Limited is preparing to debut in the market with an Initial Public Offering (IPO) worth ₹29.75 crores, offering 29.46 lakh fresh equity shares. The IPO subscription window will open from May 14, 2025, to May 16, 2025, with the listing set for May 21, 2025, on the NSE SME platform. The company is offering shares with a face value of ₹10 each, within a price band of ₹96 to ₹101 per share, with a minimum lot size of 1,200 shares. Retail investors can participate with a minimum investment of ₹1,200, while High Net-worth Individuals (HNI) can subscribe with a minimum investment of ₹2,42,400, which covers two lots.
The post-subscription timeline for Accretion Pharmaceuticals is swift, with allotment notifications scheduled for May 19, 2025. As the company enters the public market, it offers a unique opportunity for investors to participate in the growth of an emerging player in India’s pharmaceutical sector, with a particular focus on biofuel production. Investors are encouraged to explore this offering as Accretion Pharmaceuticals sets the stage for its market journey.
Accretion Pharmaceuticals Limited IPO is a fundraise worth ₹29.75 crores comprising purely of a fresh issue with 29,46,000 shares reserved for the market maker Gretex Share Broking Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from May 14, 2025, to May 16, 2025, providing an opportunity for investors looking to gain a stake in the pharma space.
Accretion Pharmaceuticals IPO date | May 14, 2025 - May 16, 2025 |
Price band | ₹96 to ₹101 per share |
Face value | ₹10 per share |
Lot size | 1,200 shares |
Issue type | Book Built Issue IPO |
Fresh issue size | 29,46,000 shares amounting to ₹29.75 crores |
Total issue size | 29,46,000 shares amounting to ₹29.75 crores |
Listing at | NSE SME |
Market maker portion | 1,47,600 shares - Gretex Share Broking Pvt Ltd |
Shareholding post-issue | 1,11,16,000 shares |
Shareholding pre-issue | 81,70,000 shares |
The Accretion Pharmaceuticals Limited IPO opens for subscription on May 14, 2025, and closes on May 16, 2025, with allotment scheduled for May 19, 2025.
IPO open date | May 14, 2025 (Wednesday) |
IPO close date | May 16, 2025 (Friday) |
Basis of allotment | May 19, 2025 (Monday) |
Initiation of refunds | May 20, 2025 (Tuesday) |
Credit of shares to Demat account | May 20, 2025 (Tuesday) |
Listing date on NSE SME | May 21, 2025 (Wednesday) |
Cut-off time for UPI mandate confirmation | 5 PM on May 16, 2025 (Friday) |
Incorporated in 2012, Accretion Pharmaceuticals Limited is a pharmaceutical company engaged in the manufacturing and marketing of a wide range of healthcare products, including tablets, capsules, and oral liquids. It also produces external preparations such as ointments, creams, gels, lotions, medicated shampoos, mouthwashes, dusting powders, and oral powders in sachet and dry syrup form. The company further extends its expertise by offering contract manufacturing services to various clients.
Accretion Pharmaceuticals operates its certified manufacturing unit in Sanand, Ahmedabad, Gujarat. It holds ISO 9001:2015, ISO 14001:2015, and ISO 22000:2005 certifications, demonstrating its strong commitment to quality, environmental standards, and food safety management systems.
The net proceeds from the Accretion Pharmaceuticals IPO are proposed to be utilized for several key objectives, including capital expenditure for the purchase of new equipment and machinery, upgrading the existing manufacturing facility, repayment or prepayment of certain company borrowings, funding working capital requirements, and for general corporate purposes.
Accretion Pharmaceuticals Limited’s key performance indicators, as on July 31, 2024, reflect the company's financial health with a Return on Equity of 72.47%, Return on Capital Employed (ROCE) at 36.73% and a Debt-to-Equity ratio of 2.52. The Return on Net-Worth (RoNW) stands at 72.47%, and the PAT Margin was 11.51. The Price to Book Value was 7.55. The company’s market capitalisation is ₹112.27 Cr.
Period Ended | December 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
Revenue | 35.75 | 33.94 | 29.53 | 22.58 |
Assets | 39.99 | 27.05 | 20.58 | 17.74 |
Net Worth | 13.58 | 5.35 | 3.84 | 3.08 |
Profit After Tax | 5.24 | 3.88 | 0.10 | 0.08 |
Reserves & Surplus | 5.41 | 1.35 | 0.00 | 0.00 |
Total Borrowing | 13.79 | 13.48 | 8.47 | 7.61 |
Amount in ₹ crores
The pre-IPO EPS is at ₹4.74 while the post-IPO EPS will be ₹6.28. Similarly, the pre-IPO Price to Earnings ratio is 21.29 and will become 16.08 post-IPO.
Accretion Pharmaceuticals offers a broad spectrum of healthcare products such as tablets, capsules, ointments, and oral powders. The company attributes its growing domestic and international customer base to this diversified product range. It holds key certifications including ISO 9001:2015 for quality management, ISO 14001:2015 for environmental management, and ISO 22000:2018 for food safety, reflecting its commitment to high operational standards.
Financially, the company has demonstrated steady growth over the years. Revenue from operations rose from ₹22.29 crores in FY22 to ₹29.38 crores in FY23 and further to ₹33.66 crores in FY24. Similarly, profit after tax increased from ₹0.08 crores in FY22 to ₹0.10 crores in FY23, surging significantly to ₹3.87 crore in FY24.
Accretion Pharmaceuticals operates in a highly regulated industry and must comply with various legal and governmental requirements, including those related to manufacturing, environmental protection, labour, and health standards. Non-compliance with laws such as the Environment Protection Act, 1986, could result in fines, legal action, or operational disruptions. The company, its subsidiaries, promoters, and directors are involved in ongoing legal proceedings—including criminal complaints, regulatory actions, and tax matters—which, if ruled adversely, could affect the company’s business outlook. Additionally, its sole manufacturing facility in Sanand, Ahmedabad, Gujarat, exposes it to regional risks such as political or economic instability. A major share of the company’s revenue depends on its top five customers, contributing 66% as of the period ended July 20, 2024. Losing any of these clients could impact the company's revenues significantly. Similarly, a large portion of raw material purchases is concentrated among the top ten suppliers, accounting for over 73% of total purchases in the same period. Any disruption in supply or logistics especially since the company relies on third-party suppliers and logistics partners could affect production schedules and profitability.
The company’s international operations in Africa, Southeast Asia, and Latin America introduce additional risks, including geopolitical instability, currency fluctuations, evolving regulatory environments, and reimbursement policy changes. Non-compliance in these regions could lead to delays, sanctions, or suspended operations. Accretion Pharmaceuticals has also reported negative cash flows from investing activities over recent years, indicating potential liquidity concerns if the trend continues. The company generates revenue through three segments: direct export sales, domestic sales, and contract manufacturing or loan licensing—each with its own set of risks. Export sales face foreign exchange and geopolitical challenges, domestic sales are vulnerable to local market dynamics, and contract manufacturing brings dependency on third-party exporters and regulatory changes. Any default in servicing the company’s outstanding financial liabilities could weaken its financial health.
Investing early in the IPO of Accretion Pharmaceuticals Limited may offer a chance to be part of the company’s growth journey, particularly in the evolving biofuels segment. However, potential investors should thoroughly evaluate key aspects such as the company’s operational history, financial performance, industry outlook, and strategic plans. It’s equally important to align the investment with personal financial goals and risk tolerance. Reviewing the offer document carefully and consulting a financial advisor is advisable to make a well-informed investment decision.
What is the Accretion Pharmaceuticals Limited IPO?
The Accretion Pharmaceuticals Limited IPO is an NSE SME offering consisting of 29.46 lakh equity shares with a face value of ₹10, aiming to raise ₹29.75 crores. The price band has been set between ₹96 to ₹101 per share, with a minimum order quantity of 1,200 shares. This IPO will be open for subscription from May 14, 2025, to May 16, 2025. Jawa Capital Services Private Limited is the book-running lead manager, Kfin Technologies Limited is the registrar while Gretex Share Broking Private Limited is the market maker.
When will the Accretion Pharmaceuticals IPO open?
The Accretion Pharmaceuticals Limited IPO will open for subscription on May 14, 2025, and will close on May 16, 2025.
When is the Accretion Pharmaceuticals IPO listing date?
The tentative listing date for the Accretion Pharmaceuticals Limited IPO is Wednesday, May 21, 2025.