Accretion Pharmaceuticals Limited is an emerging name in the Indian healthcare sector, known for its diversified presence across Ayurveda, Nutraceuticals, and Pharmaceutical products. With a workforce of over 400 employees spread across its four companies, Accretion Pharmaceuticals has maintained steady growth backed by a legacy of high-quality healthcare offerings.

IPO Overview

Accretion Pharmaceuticals Limited has launched a Book Built Issue IPO amounting to ₹29.75 Crores, which comprises an entirely fresh issue of 29.46 lakh equity shares. The subscription window opens on May 14, 2025, and closes on May 16, 2025. The IPO is set to list on the NSE SME platform with allotment expected by May 19, 2025, and tentative listing date by May 21, 2025.

The price band for the IPO is fixed between ₹96 and ₹101 per equity share. At the upper price band of ₹101, the company’s market capitalization will stand at approximately ₹112.27 Crores. The IPO lot size is fixed at 1,200 shares, meaning retail investors need to invest a minimum of ₹1,21,200, while High Net-Worth Individuals (HNIs) must subscribe for at least 2 lots (2,400 shares) amounting to ₹2,42,400.

IPO Management & Registrars

• Book Running Lead Manager: Jawa Capital Services Private Limited

• Registrar: Kfin Technologies Limited

• Market Maker: Gretex Share Broking Limited

Grey Market Premium (GMP) Insight

The Grey Market Premium for Accretion Pharmaceuticals IPO is currently ₹0, indicating no expected premium gain upon listing. This neutral GMP aligns with the company’s financial metrics and suggests that there is no significant demand-supply gap in the unofficial market for this issue. However, investors are advised to consider GMP figures for educational purposes only, as grey market trades are unregulated and do not guarantee future listing performance.

IPO Subscription Status

On the first day of the subscription (May 14, 2025), the IPO was subscribed 0.39 times as of 12:30 PM, showing modest interest from the market. Real-time subscription data is available on the NSE website, providing ongoing updates throughout the subscription period.

Anchor Investors

Accretion Pharmaceuticals successfully raised ₹2.13 Crores from anchor investors, who subscribed at the upper price band of ₹101 per share. The company allocated 2,11,200 shares to these Qualified Institutional Buyers (QIBs), helping build initial confidence for the IPO.

How to Check IPO Allotment Status

Investors can check their allotment status after May 19, 2025, via the registrar’s website, Kfin Technologies Limited. The process involves:

• Visiting the IPO allotment status page

• Selecting “Accretion Pharmaceuticals Limited IPO”

• Entering application number, PAN, or DP Client ID

• Submitting details to view the allotment result

Financial Performance Highlights

Accretion Pharmaceuticals has demonstrated steady financial growth over recent years:

This shows strong growth in revenue and profitability, especially noticeable in the EBITDA and net profit for FY24 and the latest period.

Key Financial Ratios:

• Pre-issue EPS: ₹9.69

• Post-issue EPS: ₹3.49

• Pre-issue P/E Ratio: 10.42x

• Post-issue P/E Ratio: 28.97x (Industry average P/E is 28x)

• Return on Capital Employed (ROCE): 36.73%

• Return on Equity (ROE) & Return on Net Worth (RoNW): 72.47%

• Annualized EPS (latest data): ₹11.65

• Annualized PE Ratio: 8.66x

These ratios indicate a fairly valued IPO with robust return metrics.

IPO Objectives

The net proceeds from the IPO will be deployed towards:

• ₹269.73 Lakh for capital expenditure on new machinery and equipment.

• ₹465.57 Lakh for upgrading existing manufacturing facilities.

• ₹99.17 Lakh for repayment or prepayment of existing borrowings.

• ₹1,468.00 Lakh to meet working capital requirements.

• General corporate purposes.

Expert IPO Review and Recommendation

Accretion Pharmaceuticals Limited is a growing healthcare group with diversified products in Ayurveda, Nutraceuticals, and Pharmaceuticals. The company has shown consistent financial growth and has strong promoter experience spanning over five decades. The IPO is priced fairly when compared to industry P/E ratios and offers attractive ROCE and ROE figures.

However, the current Grey Market Premium (GMP) stands at zero, indicating no immediate listing gains. Given this and the moderate subscription response, investors seeking quick listing profits may find this IPO less appealing.

Recommendation:

• Investors looking for long-term investment in the healthcare sector with steady fundamentals may consider subscribing after due diligence.

• Investors aiming for short-term listing gains should avoid this IPO due to negligible GMP and limited grey market demand.

The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Borana Weaves, Dar Credit and Capital,Belrise Industries, Wagons Learning.

The Current active IPO are Accretion Pharmaceuticals, Integrity Infrabuild Developers.

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

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.