Accretion Pharmaceuticals Limited has emerged as one of the most promising and rapidly growing groups in the healthcare industry, boasting a rich legacy of delivering high-quality healthcare products spanning Ayurveda, Nutraceuticals, and Pharmaceutical segments. With a conglomerate structure comprising four robust companies and a workforce of over 400 employees, the company has demonstrated consistent year-on-year progress that underlines its strong growth trajectory.

The company is set to launch its Initial Public Offering (IPO), which is a Book Built Issue amounting to ₹29.75 Crores. This IPO comprises entirely of a fresh issue with the offer of 29.46 lakh shares. The subscription period is scheduled from May 14, 2025, to May 16, 2025, providing investors a limited window to apply. Following the subscription, the allotment is expected to be finalized on or about May 19, 2025, with the shares tentatively slated for listing on the NSE SME platform around May 21, 2025.

Investors will find the price band set between ₹96 and ₹101 per equity share, and at the upper price band, the company’s market capitalization will be approximately ₹112.27 Crores. The IPO has a lot size of 1,200 shares, which means retail investors need to invest a minimum amount of ₹1,21,200. High Net-Worth Individuals (HNIs) are required to apply for at least two lots, totaling 2,400 shares and an investment of ₹2,42,400.

The IPO is managed by Jawa Capital Services Private Limited, serving as the book running lead manager, while Kfin Technologies Limited is appointed as the registrar. The market-making activities will be handled by Gretex Share Broking Limited. These strong institutional supports provide an additional layer of confidence to prospective investors.

Regarding the Grey Market Premium (GMP), as of now, the premium for Accretion Pharmaceuticals IPO stands at ₹0. This is reflective of the company's financial stability and the market's perception of fair valuation. It is important to note that GMP is based on demand and supply in unofficial markets and does not represent an official price discovery mechanism. Therefore, GMP should be considered for educational purposes only.

The IPO has garnered encouraging interest in the market with live subscription data as of 1:30 PM on May 15, 2025, indicating that the issue has been subscribed 1.69 times on its second day. This strong subscription trend indicates robust investor confidence in Accretion Pharmaceuticals.

Anchor investors have also shown faith in the issue by subscribing to ₹2.13 Crores worth of shares at ₹101 per share, with 2,11,200 equity shares allocated under the Qualified Institutional Buyers (QIB) portion. This early institutional backing is an important positive signal for retail investors.

Investors can check their IPO allotment status online after the allotment date of May 19, 2025, via the registrar’s official website. The process involves selecting the IPO from the dropdown, entering your application number, PAN, or DP Client ID to quickly verify the allotment outcome.

The proceeds from the IPO will be deployed in key areas to fuel the company’s growth. Specifically, ₹269.73 Lakhs will be utilized for the purchase of new equipment and machinery, ₹465.57 Lakhs for upgrading existing manufacturing facilities, ₹99.17 Lakhs towards repayment/prepayment of borrowings, ₹1,468 Lakhs for working capital needs, and the remainder for general corporate purposes.

Financially, Accretion Pharmaceuticals has shown consistent and encouraging growth. The revenue from operations increased from ₹2,258.42 Lakhs in 2022 to ₹3,574.93 Lakhs in the period ended December 31, 2024. EBITDA surged significantly from ₹193.10 Lakhs in 2022 to ₹882.45 Lakhs in the latest period, and profit after tax rose impressively from ₹7.90 Lakhs in 2022 to ₹523.55 Lakhs by December 2024. These metrics underline the company’s improving operational efficiency and profitability.

The company's key financial ratios reveal a pre-issue Earnings Per Share (EPS) of ₹9.69 and a post-issue EPS of ₹3.49 for FY24. The pre-issue Price-to-Earnings (P/E) ratio is a reasonable 10.42 times, while the post-issue P/E is 28.97 times, which is slightly above the industry average of 28 times. Furthermore, the Return on Capital Employed (ROCE) stands at an impressive 36.73%, and Return on Equity (ROE) and Return on Net Worth (RoNW) are both at 72.47%. The annualized EPS of ₹11.65 and P/E ratio of 8.66x, based on the latest financial data, suggest that the IPO is fairly priced and attractive for investors.

Despite the strong fundamentals, the Grey Market Premium indicating listing gains is currently at 0.00%, signaling that listing gains may be minimal. Hence, investors are advised to carefully assess the IPO fundamentals and long-term prospects rather than purely aiming for listing profits.

In conclusion, Accretion Pharmaceuticals Limited’s IPO represents an opportunity to invest in a growing healthcare conglomerate with diversified products in Ayurveda, Nutraceuticals, and Pharmaceuticals. The solid financial performance, coupled with clear growth plans funded by the IPO proceeds, makes this offering worth considering for investors looking for long-term value. However, given the zero GMP, investors seeking quick listing gains may want to exercise caution.

This detailed analysis of Accretion Pharmaceuticals IPO covers the subscription timelines, pricing, allotment process, financial highlights, GMP trends, and key objectives of the fund utilization. For investors monitoring new IPOs in the healthcare sector, this issue provides an important investment opportunity backed by solid financials and credible market support.

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.

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