Accretion Pharmaceuticals Limited is coming up with an IPO with a fresh issue of 29,46,000 shares worth INR 29.75 crores. The company aims to fund capital expenditure towards machinery & equipment purchase, repay or prepay borrowings, and meet working capital requirements and general corporate purposes. 

Accretion Pharmaceuticals IPO – Important Dates

Accretion Pharmaceuticals Limited IPO – Company Profile

Accretion Pharmaceuticals Limited manufactures and markets tablets, capsules, oral liquids, external preparations like ointments, creams, gels, lotions, medicated shampoos, mouthwash, dusting powders, and oral powders. It also offers contract and loan license manufacturing services to various pharmaceutical marketers.

Headquartered in Sanand, Ahmedabad, the company operates a certified facility with ISO 9001:2015, ISO 14001:2015, and ISO 22000:2005 accreditations, focusing on quality and environmental standards.

Accretion Pharmaceuticals Limited has expanded its presence to over 20 countries across Africa, Southeast Asia, and the Middle East, positioning itself as a global pharmaceutical manufacturing partner.

Accretion Pharmaceuticals Ltd IPO Fundamental Analysis

Accretion Pharmaceuticals Limited’s financial analysis reveals a mixed performance. Revenue has shown strong growth along with rising profits and assets, with improved liquidity. However, the debt-equity ratio has increased, which could be a source of concern among investors. 

• Revenue Trend: The revenue increased from ₹2,938.43 lakhs in March 2023 to ₹3,366.52 lakhs in March 2024. The revenue for the 9-month period ended December 2024 is INR 3,566.73 lakhs.    
• Equity and Liabilities:  Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly decreased from ₹10.39 lakhs in March 2023 to ₹387.53 lakhs in March 2024, boosting investor confidence. The profit for the 9-month period ended in December 2024 is ₹523.55 lakhs.
• Earnings per Share (EPS): The diluted EPS has increased from ₹0.26 in March 2023 to ₹9.69 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the 9-month period ended in December 2024 is ₹8.74.
• Return on Net Worth (RoNW): The RoNW has risen from 2.70% to 72.47%, indicating an increase in the company’s ability to generate returns on shareholder equity.
• Financial Position: Total assets have increased, suggesting potential business growth. The current ratio has also increased, indicating stronger liquidity and a better ability to meet short-term obligations. 

Accretion Pharmaceuticals IPO Financial Analysis

Accretion Pharmaceuticals Limited IPO Peer Comparison

Accretion Pharmaceuticals Limited leads in RoNW, Sakar Healthcare Limited excels in P/E ratio, Lincoln Pharmaceuticals Limited displays strong revenue, and Sotac Pharmaceuticals Limited shows consistent growth. 

Accretion Pharmaceuticals Ltd IPO Objective

The main objective of Accretion Pharmaceuticals Limited is to fund capital expenditure towards machinery & equipment purchase, repay or prepay borrowings, fund working capital requirements and general corporate purposes. 

1. Capital expenditure towards the purchase of new equipment or machineries: The company aims to utilise INR 269.73 lakhs from the Net Proceeds to purchase new machinery to install at their existing manufacturing facility located in Gujarat. 

2. Capital expenditure towards the upgradation of existing manufacturing facility: The company aims to utilise INR 465.57 lakhs from the Net Proceeds to fund the capital expenditure towards the upgradation of the existing manufacturing facility. 

3. Repayment/prepayment of certain borrowings availed by their company: The company intends to utilise INR 99.17 lakhs from the Net Proceeds for the repayment or prepayment of certain borrowings availed by the company. 

4. Funding Working capital requirements: The company aims to utilise INR 1468.00 lakhs from the Net Proceeds to fund the working capital requirements.

5. General Corporate Purpose: The company will utilise the remaining proceeds to meet general corporate purposes. 

Accretion Pharmaceuticals IPO Risks And Challenges

Accretion Pharmaceuticals Limited’s risks include high dependency on export revenues, strict regulatory compliance in the pharmaceutical sector, and regulatory actions which could adversely impact operations, profitability, and business performance. 

• A significant portion of the company’s revenue is derived from exports, and any decline in export profitability may adversely impact its overall financial performance.

• Operating in a highly regulated industry, the company is subject to numerous compliance requirements. Non-compliance with current or future pharmaceutical regulations may lead to penalties or operational restrictions, negatively impacting their business and financial condition.

• The company’s manufacturing units undergo regular audits by regulatory authorities and clients. Any non-conformity or negative audit/inspection outcome could lead to regulatory actions, which could damage their business, financial condition, and cash flows.

Accretion Pharmaceuticals Ltd IPO – Industry & Market Potential

The Indian pharmaceutical industry was valued at USD 50 billion in 2023 and is expected to grow to USD 65 billion by 2024 and further to USD 130 billion by 2030. Growth is driven by exports, vaccine manufacturing, and global demand for generics.

India contributes 20% to global generic drug exports and meets ~60% of global vaccine demand, supplying over 70% of WHO’s vaccine needs. The sector serves over 200 countries, including ~40% of generics in the US and ~25% of medicines in the UK.

India is home to 3,000+ pharma companies and 10,500+ manufacturing units, including the highest number of USFDA-compliant plants outside the US. 100% FDI is permitted under the automatic route for greenfield pharma, boosting sectoral investments.

Accretion Pharmaceuticals Limited IPO – Type of Offer

Accretion Pharmaceuticals Limited is coming up with an IPO with a fresh issue of 29,46,000 shares worth INR 29.75 crores. The company aims to fund capital expenditure towards machinery & equipment purchase, repay or prepay borrowings, meet working capital requirements and general corporate purposes. 

Accretion Pharmaceuticals IPO Offer Size

The offer size of Accretion Pharmaceuticals Limited is INR 29.75 crores, consisting of a fresh issue of 29,46,000 shares. The company aims to fund capital expenditure towards machinery & equipment purchase, repay or prepay borrowings, fund working capital requirements and general corporate purposes. 

Accretion Pharmaceuticals Limited IPO Allotment Structure

Accretion Pharmaceuticals Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs 2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs 2 lakhs. 

How to apply for the Accretion Pharmaceuticals IPO?

To apply for the Accretion Pharmaceuticals Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Accretion Pharmaceuticals Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Accretion Pharmaceuticals Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Accretion Pharmaceuticals IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Accretion Pharmaceuticals Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Accretion Pharmaceuticals Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Accretion Pharmaceuticals Limited IPO:

● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Accretion Pharmaceuticals Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange Small and Medium Enterprises (NSE SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Accretion Pharmaceuticals Ltd IPO Offer Registrar

The registrar for the Accretion Pharmaceuticals Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

KFin Technologies Limited 

Selenium, Tower-B, Plot No. 31 and 32 

Financial District Nanakramguda, Serilingampally

Hyderabad 500 032 Telangana, India

Tel: +91 40 6716 2222

E-mail: [email protected]

Website: www.kfintech.com

Accretion Pharmaceuticals IPO – FAQs