IPO Details
RHP/DRHPIssue Date
14 May - 16 May'25
Investment/lot
₹ 121200
Price Range
96 - 101
Lot Size
1200
IPO Size
₹ 29.75 Cr
IPO Listing Details
Listing On
21 May'25
Issue Price
101
Listed Price
₹ 79
Retail Gain/Listing Gain
▼-21.78%
Schedule of Accretion Pharmaceuticals IPO
Start date
14/05/2025
End date
16/05/2025
Allotment of bids
19/05/2025
Refund Initiation
20/05/2025
Listing on exchange
21/05/2025
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
Accretion Pharmaceuticals Ltd IPO Valuation
Accretion Pharmaceuticals Ltd IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Investors | Not less than 15% of the issue |
Retail Individual Investors | Not less than 35% of the issue |
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.
Accretion Pharmaceuticals Ltd IPO Strengths
Wide Range of Products
Vision of Accretion is to ensure the quality of health care products and to meet the standards of their clients, commitment to provide world class quality, competitive pricing and a constant urge to expand their product portfolio has gained reputation as a global manufacturer of various formulations with world class quality products.
Long-standing Relationship with Clients and Suppliers
The company continually invests in strengthening its relationships with its clients and suppliers. Its sales and marketing operations are led by its promoter Mr. Hardik Mukundbhai Prajapati and Mr. Vivek Ashok Kumar Patel who have got rich experience in the business of the company.
Quality Standards
Quality plays one of the most vital roles in the success of any organisation. The company is focused on providing quality products. It constantly strives to improve its industrial processes at every step in the production chain. Its focus on quality is evidenced by the quality certification from ISO 9001:2015 for maintaining quality standards and ISO 14001:2015 for meeting safe environmental standards and policies.
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.
All Financial Information about Accretion Pharmaceuticals
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company | EPS in ₹ | Return on Net Worth (in %) | NAV in ₹ |
|---|---|---|---|
Accretion Pharmaceuticals Ltd | 8.74 | 38.54 | 17.09 |
Sakar Healthcare Ltd | 5.64 | 4.45 | 120.65 |
Lincoln Pharmaceuticals Ltd | 46.58 | 15.74 | 295.98 |
Sotac Pharmaceuticals Ltd | 5.24 | 11.91 | 43.69 |
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.
Accretion Pharmaceuticals Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 33.9386 | 29.5315 | 22.5842 |
Profit/ (Loss) before Tax (in ₹ crores) | 5.7617 | 0.1388 | 0.1040 |
Profit After Tax (in ₹ crores) | 3.8753 | 0.1039 | 0.0790 |
EPS in ₹ | 9.69 | 0.26 | 0.20 |
Accretion Pharmaceuticals Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit/ (Loss) before Tax (in ₹ crores) | 5.7617 | 0.1388 | 0.1040 |
Net Cash from / (used in) Operating Activities (in ₹ crores) | (1.3272) | 0.3211 | 2.1500 |
Net Cash from / (used in) Investing Activities (in ₹ crores) | (0.1077) | (1.0996) | (0.2573) |
Net Cash from / (used in) Financing Activities (in ₹ crores) | 1.4902 | 0.4403 | (1.5849) |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 0.0916 | 0.0364 | 0.3745 |
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.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Accretion Pharmaceuticals IPO FAQs
When is Accretion Pharmaceuticals IPO listing date?
Accretion Pharmaceuticals IPO will list on 2025-05-21.
What is the issue size of Accretion Pharmaceuticals IPO?
29.75 is the issue size of Accretion Pharmaceuticals IPO.
What is the minimum lot size required for Accretion Pharmaceuticals IPO?
The minimum lot size is 1200 shares and the investment required is ₹121200.
What is the price band of the Accretion Pharmaceuticals IPO?
The price band of Accretion Pharmaceuticals IPO is ₹96 to ₹101.
Where can I read more about Accretion Pharmaceuticals business?
You can read more about Accretion Pharmaceuticals and its IPO from the company’s red herring prospectus (RHP) here.
What is the Accretion Pharmaceuticals Ltd IPO?
The IPO of Accretion Pharmaceuticals Ltd comprises a fresh issue of 29,46,000 equity shares. There’s no offer for sale in this IPO.
When will the IPO of Accretion Pharmaceuticals Ltd go live?
The bidding for this IPO opens on May 14, 2025. It ends on May 16.
What is the lot size of Accretion Pharmaceuticals Ltd?
The lot size is 1200 and in multiples thereof.
From where can I read more about the IPO of Accretion Pharmaceuticals Ltd?
You can read more about the IPO of Accretion Pharmaceuticals Ltd from the company’s red herring prospectus here.
