Accretion Pharmaceuticals IPO: Price, Allotment And GMP

Accretion Pharmaceuticals IPO- Complete Overview

Accretion Pharmaceuticals IPO under the SME IPO category is a book build issue of Rs. 29.75 Cr by Accretion Pharmaceuticals Limited. It is engaged in the making and selling of tablets, capsules, and other pharmaceuticals. It was established in 2012.

The business does contract manufacturing and holds certificates for other quality and environmental management system standards. The manufacturing facility is located in Gujarat having presence in more than 20 countries.

Product Portfolio and Services

Liquids and Syrups - Respiratory, pediatric, and gastrointestinal treatments.

External - Medicated dusting powders, ointments, gels, and lotions for dermatological and skin care therapy.

Herbal Products - Natural wellness products for immunity, digestion, and general well-being.

Tablets- Antibiotics, anti-inflammatory, pain killers, cardiovascular, and gastrointestinal drugs.

Accretion Pharmaceuticals IPO Overview

The Accretion Pharmaceuticals IPO begins on May 14, and ends on May 16, 2025. 

The Rs. 29.75 crore new SME IPO consists wholly fresh issue of 29.46 lac Shares. 

This upcoming IPO is available from May 14 to May 16, 2025. The Accretion Pharmaceuticals IPO price is Rs. 96 to Rs. 101 for each Share. 

The Accretion Pharmaceuticals IPO listing date (expected) is May 21 and listing at the NSE and SME.

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Company Financial

(Amount in Lac)

 

Cash Flows

(Amount in lac)

 

Revenue Bifurcation

Vertical-wise breakdown

(Rs. in lac)

 

Vertical-wise breakdown

(Rs. in lac)

 

State-wise breakdown

(Rs. in lac)

(Source: RHP)

 

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Capital outlay for the acquisition of new machinery, equipment, etc.

• Investing money to upgrade the current manufacturing plant.

• Repayment or early repayment of specific loans that the business has taken out.

• Working capital needs for funding.

• General corporate purposes.

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Peers of Accretion Pharmaceuticals Ltd.

 

Evaluation

The Accretion Pharmaceuticals Limited IPO price is Rs. 96 to Rs. 101 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs. 9.69 from the last year, the resulting P/E ratio is 10.42x.

Considering the weighted EPS of Rs. 4.97 for the last three years, the P/E ratio is 20.32x.

Integrity Infrabuild Developers IPO is available to apply till May 15, 2025.

 

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 28.35.

In simple words, the P/E ratio of this IPO (10.42x), compared with the industry’s average P/E of 28.35x, has an undervaluation (on a P/E ratio basis only). Hence, the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• Established relationship with customers and suppliers.

• Experienced Promoters and Management team.

• Emphasis on delivering quality products.

• Management established a supply chain and customer relationships, establishing goodwill and trust.
  
  

IPO’s Weaknesses

• The firm has a single manufacturing plant in Sanand, Ahmedabad. This makes the firm prone to shutdown of operations due to power outages, equipment failure, labor strife, or natural disasters.

• A considerable portion of the firm's top line pertains to contract manufacturing and exports. This leaves the firm exposed to forex fluctuations, international regulation changes, overreliance on a small set of clients, and trade barriers. A decline in export demand or a margin squeeze would substantially hurt profitability.

• It tends to work on purchase order terms and does not have long-term customer agreements. This makes revenue volatility higher, as customers can cut or cancel orders at any time without notice, impacting cash flows and business visibility directly.
  
  

Accretion Pharmaceuticals IPO GMP

Accretion Pharmaceuticals IPO GMP is Rs. 0 as of 12 May 2025. Hence, its estimated listing price is Rs. 101.

IPO Timetable (Tentative)

The Accretion IPO date of subscription is May 14 to May 16, 2025, allotment on May 19, refund initiation on May 20, and listing on May 21, 2025.

 

Accretion Pharmaceuticals IPO Details 

The IPO with a Face Value of Rs. 10 per share offers a total issue size of 29,46,000 Shares (Rs. 29.75 Cr).

IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs. 1,21,200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs. 2,42,400.

The Virtual Galaxy IPO is open for application till 14 May 2025.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Accretion Pharmaceuticals Ltd.

• Mr. Mayur Popatlal Sojitra

• Mr. Harshad Nanubhai Rathod

• Mr. Vivek Ashok Kumar Patel

• Mr. Hardik Mukundbhai Prajapati.

IPO Lead Managers

• Jawa Capital Services Private Limited.
  
  

Dividend Policy

The company hasn’t paid a dividend since its incorporation.

Conclusion

Accretion Pharmaceuticals IPO is an SME offering priced at Rs. 96 to Rs. 101 per share. The company is well-equipped with a robust product portfolio and carries several ISO certifications. With a lower ratio of P/E than industry friends, the valuations look very appealing. It provides a good long-term investment prospect for retail investors.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.