Accretion Pharmaceuticals IPO
- IPO Date14 May, 2025 to 16 May, 2025
- Listing Date21 May, 2025
- Face Value₹10 per share
- Issue Price₹96 to ₹101 per share
- Lot Size1200 Shares
- Minimum Investment₹1,21,200
- Listing AtNSE SME
- Total Issue Size29,46,000 Shares
(aggregating up to ₹29.75 Cr) - Fresh Issue29,46,000 Shares
(aggregating up to ₹29.75 Cr)
- Offer for Sale-
- Issue TypeBookbuilding IPO
- Share holding pre issue81,70,000
- Shareholding post issue1,11,16,000
IPO Dates
Closing Date
16 May, 2025
Initiation of Refunds
20 May, 2025
Listing Date
21 May, 2025
14 May, 2025
Opening Date
19 May, 2025
Basis of Allotment
20 May, 2025
Credit of Shares
Accretion Pharmaceuticals Lot Size
Investors can bid for a minimum of 1200 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Retail Investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹1,21,200 |
| HNI (Min) | 2 | 2400 | ₹2,42,400 |
| Retail (Max) | 1 | 1200 | ₹1,21,200 |
Accretion Pharmaceuticals Promoter Holding
The promoters of the company are Mr. Mayur Popatlal Sojitra, Mr. Harshad Nanubhai Rathod, Mr. Vivek Ashok Kumar Patel and Mr. Hardik Mukundbhai Prajapati.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 100% | 73.48% |
Accretion Pharmaceuticals COMPANY INFORMATION
Accretion Pharmaceuticals IPO is a bookbuilding of ₹29.75 crores. The issue is entirely a fresh issue of 29.46 lakh shares. Accretion Pharmaceuticals IPO opens for subscription on May 14, 2025 and closes on May 16, 2025. The allotment for the Accretion Pharmaceuticals IPO is expected to be finalized on Monday, May 19, 2025. Accretion Pharmaceuticals IPO will be list on NSE SME with a tentative listing date fixed as Wednesday, May 21, 2025. Accretion Pharmaceuticals IPO price band is set at ₹96 to ₹101 per share. The minimum lot size for an application is 1200. The minimum amount of investment required by retail investors is ₹1,15,200. But it is suggested to the investor to bid at the cutoff price to avoid the oversubscription senerio, which is about to ₹1,21,200. The minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to ₹2,42,400. Jawa Capital Services Private Limited is the book-running lead manager of the Accretion Pharmaceuticals IPO, while Kfin Technologies Limited is the registrar for the issue.The market maker for Accretion Pharmaceuticals IPO is Gretex Share Broking Private Limited. Refer to Accretion Pharmaceuticals IPO RHP for detailed information.
Incorporated in 2012, Accretion Pharmaceuticals Limited is a pharmaceutical company that manufactures and sells tablets, capsules, and other healthcare products.
The company also offers contract manufacturing services. The Company manufactures and markets Tablets, Capsules, Oral Liquids, External Preparations (Ointment, Cream, Gel, Lotion, Medicated Shampoo, Mouthwash, Dusting Powder), and Oral Powder (Sachet, Dry Syrup).
The company also holds ISO 9001:2015, ISO 14001:2015, and ISO 22000:2005 certifications, reflecting its dedication to quality and environmental management systems.
The company's manufacturing unit is located in Ahmedabad, Sanand, Gujarat.
The company has expanded its global footprint, marking its presence in more than 20 countries, including regions in Africa, Southeast Asia, and the Middle East.
Product Portfolio and Services
- Tablets and Capsules – Covering antibiotics, anti-inflammatory, pain management, cardiovascular, and gastrointestinal medicines.
- Oral Liquids and Syrups – Used for respiratory, pediatric, and digestive treatments.
- External Preparations – Including medicated lotions, gels, ointments, and dusting powders for skin care and dermatological treatments.
- Ayurvedic and Herbal Products – Focused on natural wellness solutions for immunity, digestion, and general health.
As of January 2025, the company has 83 employees (including 4 Executive Directors) on its payroll.
Accretion Pharmaceuticals IPO Analysis – Comprehensive Overview
Introduction to Accretion Pharmaceuticals IPO
Accretion Pharmaceuticals Limited, a Gujarat-based company, has filed its Red Herring Prospectus for an Initial Public Offering (IPO) of 29,46,000 equity shares. This 100% fresh issue aims to raise funds for capital expenditure, working capital needs, and debt repayment. With a strong footprint in pharmaceutical manufacturing—including tablets, capsules, liquids, and topical preparations—Accretion Pharmaceuticals has transitioned from a partnership firm to a limited company in 2023.
Company Background and Business Model
The company was initially established as a partnership firm in 2012 and converted into a limited company in 2023. Its operations are located in Ahmedabad, Gujarat, where it produces a diverse range of pharmaceutical products. Apart from its own sales, the company also engages in contract manufacturing for other firms on a principal-to-principal basis. Accretion’s focus on high-quality production at competitive prices gives it a credible foundation in the domestic pharma sector.
Objectives of the IPO
The IPO proceeds will be used for:
Capital expenditure including installation of new machinery
Working capital requirements
Repayment or prepayment of certain loans.
Financial Highlights
Revenue Growth: From ₹2,229.20 lakhs in FY22 to ₹3,566.73 lakhs in the nine months ending Dec 2024
PAT (Profit After Tax): ₹7.9 lakhs in FY22 to ₹523.55 lakhs in 9M FY25
EBITDA Margin: Increased from 8.66% (FY22) to 24.74% (9M FY25)
Return on Equity: Improved to 38.54% by December 2024
P/E Ratio (based on cap price of ₹101): 11.56x
Peer Comparison
Compared to peers like Lincoln Pharmaceuticals (P/E 12.30) and Sakar Healthcare (P/E 48.89), Accretion offers a competitive valuation. Its Return on Net Worth (RoNW) at 38.54% is also significantly higher than most of its industry peers.
Industry Outlook
India’s pharmaceutical industry is projected to reach $65 billion by 2024 and $130 billion by 2030. India holds a 20% global share in generic medicine supply and is the world’s largest vaccine producer. The sector is supported by a skilled workforce and robust regulatory environment.
Key Strengths
Promoter Expertise
The founding team has deep technical and commercial experience in pharmaceuticals, which positions the company strongly for scalability.
Diverse Product Portfolio
Accretion manufactures a wide variety of products including tablets, syrups, ointments, creams, capsules, and powders—addressing a broad therapeutic market.
B2B and Contract Manufacturing
Engagements with multiple marketers through loan license manufacturing reduce market entry costs and stabilize revenue streams.
Risk Factors
No Historical Listing
As this is Accretion’s first public issue, the stock has no prior trading history and may face volatility post-listing.
Regulatory Dependency
The company’s operations are highly dependent on regulatory approvals for pharmaceutical manufacturing and marketing.
High Working Capital Cycle
The working capital days stood at 176 as of Dec 2024, which may affect liquidity management.
Pros and Cons of Accretion Pharmaceuticals IPO
Pros
Strong YoY financial performance
High RoNW and EBITDA margins
Diversified manufacturing capability
Reasonable valuation compared to peers
Favorable sectoral tailwinds
Cons
New listing with no historical market data
Revenue dependence on contract manufacturing
Working capital cycle pressures
No past record of dividend payment
Listing Details
Stock Exchange: NSE EMERGE
IPO Opening Date: May 14, 2025
IPO Closing Date: May 16, 2025
Anchor Investor Participation: May 13, 2025
FAQ on Accretion Pharmaceuticals IPO
Accretion Pharmaceuticals IPO will open on 14 May, 2025 and close on 16 May, 2025. Investors must apply within this period to participate.
The Accretion Pharmaceuticals IPO price band is set between ₹96.00 and ₹101.00 per share. The minimum lot size is 1200, requiring an investment of at least ₹121200.00.
The Accretion Pharmaceuticals IPO shares are expected to be listed on 21 May, 2025, subject to regulatory approvals and final allotment.
You can track your Accretion Pharmaceuticals IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Accretion Pharmaceuticals IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.
Accretion Pharmaceuticals operates a dual model—producing its own branded pharmaceutical products and engaging in contract manufacturing for other marketers. This reduces business risk while increasing scalability.
The company has shown robust growth. Revenue from operations grew from ₹2,229.20 lakhs in FY22 to ₹3,566.73 lakhs in 9M FY25. Net profit also surged significantly during the same period.
The IPO aims to fund capital expansion, meet working capital needs, and repay/prepay existing borrowings.
It is competitively priced with a lower P/E ratio and higher RoNW compared to similar pharma companies, offering better value for growth-focused investors.
Being a first-time public issue, market volatility is a risk. Additionally, the company has a lengthy working capital cycle and its success is dependent on regulatory compliance and client retention.
With strong fundamentals, rising profitability, and a promising industry backdrop, this IPO may be suitable for investors seeking exposure to India’s pharmaceutical growth story, provided they are aware of the associated risks.