Accretion Pharmaceuticals Limited IPO detailed analysis and investment guide

Accretion Pharmaceuticals Limited is a growing and promising group in the healthcare sector, specializing in Ayurveda, nutraceuticals, and pharmaceutical products. With a strong legacy of quality healthcare products, the company operates as a conglomerate of four companies employing over 400 people, achieving consistent year-on-year growth.

IPO Overview and Key Dates

The Accretion Pharmaceuticals IPO is a book-built issue aiming to raise ₹29.75 crore through the fresh issue of 29.46 lakh shares. The subscription period opens on May 14, 2025, and closes on May 16, 2025. The allotment is expected on or about May 19, 2025, and listing on the NSE SME is tentatively scheduled for May 21, 2025.

The price band for the IPO is ₹96 to ₹101 per share. At the upper price band of ₹101, the company's market capitalization will be approximately ₹112.27 crore. The lot size is 1,200 shares, with retail investors required to invest a minimum of ₹1,21,200. High-Net-Worth Individuals (HNIs) must apply for at least 2 lots (2,400 shares), totaling ₹2,42,400.

Jawa Capital Services Private Limited is the book running lead manager, while Kfin Technologies Limited is the registrar. Gretex Share Broking Limited is the market maker.

Financial Performance and Growth

Accretion Pharmaceuticals has demonstrated steady financial growth over recent years:

• Revenue increased from ₹2,258 lakh in FY22 to ₹3,575 lakh in the period ended December 31, 2024.

• EBITDA grew significantly from ₹193 lakh in FY22 to ₹882 lakh in FY24.

• Profit after tax rose from ₹7.90 lakh in FY22 to ₹524 lakh in FY24.

Key financial ratios include:

• Pre-issue EPS of ₹9.69 and post-issue EPS of ₹3.49 for FY24

• Pre-issue P/E ratio of 10.42x and post-issue P/E ratio of 28.97x, compared to industry P/E of 28x

• ROCE of 36.73% and ROE of 72.47% for FY24

• Annualized EPS of ₹11.65 with a P/E ratio of 8.66x, indicating reasonable valuation metrics

IPO Objectives and Use of Proceeds

The net proceeds will be utilized as follows:

• ₹269.73 lakh for capital expenditure on new equipment and machinery

• ₹465.57 lakh for upgrading existing manufacturing facilities

• ₹99.17 lakh for repayment/prepayment of borrowings

• ₹1,468 lakh for funding working capital requirements

• Remaining for general corporate purposes

This funding strategy emphasizes capacity expansion and financial stability.

Grey Market Premium and Listing Outlook

The Grey Market Premium (GMP) currently stands at ₹0, suggesting no anticipated listing gains. GMP reflects unorganized demand and supply, and a zero premium indicates subdued market enthusiasm for listing profits.

How to Check IPO Allotment Status

Investors can verify their allotment status after May 19, 2025:

• Visit the IPO allotment status page on the registrar’s website

• Select Accretion Pharmaceuticals Limited IPO from the dropdown

• Enter application number, PAN, or DP Client ID

• Submit to view allotment results

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.

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