Accretion Pharmaceuticals Limited, a company rooted in delivering healthcare through Ayurveda, Nutraceuticals, and Pharmaceuticals, is entering the capital markets with its ₹29.75 crore IPO. With its subscription window open from May 14 to May 16, 2025, the company aims to raise funds through a 100% fresh issue of 29.46 lakh shares.

This article presents an in-depth analysis of the IPO structure, financials, grey market premium (GMP), objectives, and valuation, so that investors can make an informed decision.

IPO Structure and Timeline

• IPO Type: Book Built Issue

• Issue Size: ₹29.75 Crore (All Fresh Issue)

• Price Band: ₹96 – ₹101 per equity share

• Lot Size: 1,200 shares

• Minimum Investment (Retail): ₹1,21,200

• Minimum Investment (HNI): ₹2,42,400 (2 lots)

• Subscription Period: May 14 – May 16, 2025

• Allotment Date: May 19, 2025

• Listing Date (Tentative): May 21, 2025

• Listing Exchange: NSE SME

Book Running Lead Manager: Jawa Capital Services Private Limited
Registrar: Kfin Technologies Limited
Market Maker: Gretex Share Broking Limited

Grey Market Premium (GMP) Status

As of May 7, 2025, the GMP stands at ₹0, suggesting no expected listing gains. While GMP can change depending on market dynamics, in this case, it indicates weak sentiment or muted interest in the unlisted market.

Important Note: Grey Market Premiums are unofficial and speculative. Investors should not base decisions solely on GMP figures, especially when they stand at zero or negligible levels.

Company Background and Strengths

Accretion Pharmaceuticals Limited operates as a conglomerate of four healthcare companies, employing over 400 people. It has established itself in Ayurvedic, Nutraceutical, and Allopathic product segments and has demonstrated consistent revenue growth.

The company is promoted by:

• Mr. Vivek Ashokkumar Patel

• Mr. Harshad Nanubhai Rathod

• Mr. Mayur Popatlal Sojitra

• Mr. Hardik Mukundbhai Prajapati

Together, the promoters bring over five decades of experience in pharmaceutical manufacturing and distribution.

Financial Performance

Revenue from Operations:

• Dec 31, 2024: ₹3,574.93 Lakh

• FY 2024: ₹3,393.86 Lakh

• FY 2023: ₹2,953.15 Lakh

• FY 2022: ₹2,258.42 Lakh

EBITDA:

• Dec 31, 2024: ₹882.45 Lakh

• FY 2024: ₹776.28 Lakh

• FY 2023: ₹213.85 Lakh

• FY 2022: ₹193.10 Lakh

Profit After Tax (PAT):

• Dec 31, 2024: ₹523.55 Lakh

• FY 2024: ₹387.53 Lakh

• FY 2023: ₹10.39 Lakh

• FY 2022: ₹7.90 Lakh

This consistent improvement in profitability and revenue reflects strong operational execution.

IPO Valuation Analysis

• Pre-Issue EPS (FY24): ₹9.69

• Post-Issue EPS (FY24): ₹3.49

• Annualised EPS (based on latest data): ₹11.65

• Pre-Issue P/E Ratio: 10.42x

• Post-Issue P/E Ratio: 28.97x

• Industry Average P/E: ~28x

• ROCE (FY24): 36.73%

• ROE (FY24): 72.47%

• RoNW: 72.47%

These metrics show strong capital efficiency, but the post-issue EPS dilution pushes valuation into overvalued territory compared to peers.

Use of IPO Proceeds

The company plans to utilize the net proceeds of the IPO for the following:

1. ₹269.73 Lakh – Capital Expenditure for New Machinery

2. ₹465.57 Lakh – Upgradation of Existing Manufacturing Facility

3. ₹99.17 Lakh – Repayment of Certain Borrowings

4. ₹1,468.00 Lakh – Working Capital Requirements

5. Balance – General Corporate Purposes

This breakdown indicates a balanced strategy between capex, debt reduction, and working capital, with a focus on enhancing manufacturing capabilities.

Allotment Status: How to Check Online

Once the IPO closes and the allotment is finalized on May 19, 2025, investors can check their status through the Kfin Technologies website.

Steps to Check Allotment:

1. Visit Kfintech’s IPO allotment status page

2. Select “Accretion Pharmaceuticals Limited IPO” from the dropdown

3. Enter Application Number / PAN / DP Client ID

4. Submit and view your allotment status

This will confirm whether the shares have been allotted in your name.

Final Verdict: Should You Apply?

The company’s fundamentals are strong, with solid financial growth and return ratios. However, the post-issue valuation appears stretched, and the zero GMP suggests weak listing-day enthusiasm.

We recommend “Avoid” for investors looking purely for listing gains.
For long-term investors, the fair valuation and sectoral growth outlook in the pharma and nutraceutical space may justify a small, well-considered investment, after evaluating risk tolerance. 

The Upcoming IPOs in this week and coming weeks are Integrity Belrise Industries, Accretion Pharmaceuticals, Wagons Learning.

The Current active IPO are Integrity Infrabuild Developers, Virtual Galaxy Infotech.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

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