Accretion Pharmaceuticals IPO

About Accretion Pharmaceuticals Ltd IPO

The IPO of Accretion Pharmaceuticals Ltd comprises a fresh issue of 29,46,000 equity shares, with no offer for sale. It’s a 100% book-built issue.

Objectives of Accretion Pharmaceuticals Ltd IPO

• Capital expenditure towards purchase of new equipment/ machineries, etc
• Capital expenditure towards upgradation of existing manufacturing facility
• Repayment/prepayment of certain borrowings availed by the company
• Funding working capital requirements
• General corporate purpose

Industry Outlook

The pharmaceutical industry in India is expected to reach $130 Bn by 2030. India is a major exporter of pharmaceuticals, with over 200+ countries served by Indian pharma exports. India supplies over 50% of Africa’s requirement for generics, ~40% of generic demand in the US and ~25% of all medicine in the UK. India also accounts for ~60% of global vaccine demand, and is a leading supplier of DPT, BCG and measles vaccines.

Company Information

Accretion Pharmaceuticals Ltd is engaged in the business of manufacturing and marketing of tablets, capsules, oral liquid, external preparations (Ointment, Cream, Gel, Lotion, Medicated Shampoo, Mouthwash, Dusting Powder) and oral powder (Sachet, Dry Syrup) etc.

Apart from manufacturing products for direct sales, the company also manufactures various pharmaceutical products for different marketers on loan license or contract manufacturing basis. The business is majorly carried out on a principle-to-principle basis with different marketers.

Risks of Accretion Pharmaceuticals Ltd

• Revenue from Exports

The company’s profitability is largely influenced by factors affecting the export market, including fluctuations in foreign exchange rates, changes in international trade policies, regulatory requirements in different jurisdictions, geopolitical uncertainties, and competitive pricing pressures. Any reduction in export demand, increase in production or compliance costs, or unfavourable currency movements could negatively impact its profit after tax (PAT) and PAT margins.

• Extensive Regulation

The company operates in the pharmaceutical sector, which is extensively regulated. Any failure on its part to comply with the existing and future statutory and/or regulatory requirements in the pharmaceutical sector could adversely affect its business, results of operations and financial condition.

• Periodic Inspections

The company’s manufacturing units are subject to periodic inspections and audits by regulatory authorities and clients. It may be subject to regulatory action which may damage its reputation leading to an adverse effect on its business, results of operations, financial condition and cash flows.

Anchor Investor Bidding Date May 13, 2025

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Kfin Technologies Ltd
• Book Running Lead Manager: Jawa Capital Services Pvt Limited

Business Model

Accretion Pharmaceuticals Ltd is a pharmaceutical contract development and manufacturing organisation (CDMO) offering a comprehensive range of pharmaceutical products and services. It’s engaged in the business of manufacturing and marketing of tablets in various dosages and capsules in various dosages.

It’s also into manufacturing oral liquid, external preparations (Ointment, Cream, Gel, Lotion, Medicated Shampoo, Mouthwash, Dusting Powder) and oral powder (Sachet, Dry Syrup) etc., either for direct sales, loan licence and/or contract manufacturing.

Company Growth Trajectory

The revenue from operations of Accretion Pharmaceuticals Ltd grew from ₹22.292 crores in FY 22 to ₹33.6652 crores in FY 24. The company’s PAT margin grew from 0.35% in FY 22 to 11.51% in FY 24, while gross profit margin increased from 21.23% in FY 22 to 35.81% in FY 24. An experienced management team coupled with legacy business process and management has contributed to the company’s growth.

Market Position

Presently, the company is doing the business in 3 verticals i.e. sales to domestic market, direct sales to export market and sales to merchant exporter under loan license basis. The products manufactured by the company sold to merchant exporters are further sold by the merchant exporter to various countries. The company presently is exporting majority of its products directly/indirectly to geographies such as Africa, South-East Asia and Latin America.

How to Check Allotment Status of Accretion Pharmaceuticals Ltd IPO?

1. Through the Registrar’s Website

• Visit the official website of Kfin Technologies Ltd
• Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’ dropdown
• Click on any one of the links
• Choose the company name and enter either your application number, Demat account or PAN number
• Enter captcha and click on ‘Submit’

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Accretion Pharmaceuticals Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
• Application number
• PAN

Then click 'Submit' to know the allotment status.

How to Apply for Accretion Pharmaceuticals Ltd IPO?

• Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.