Accretion Pharmaceuticals Limited is launching its Accretion Pharmaceuticals Limited IPO on the NSE SME platform. Below are the comprehensive details:
IPO Timeline
- Issue Opens: May 14, 2025
- Issue Closes: May 16, 2025
- Allotment Finalization: May 19, 2025
- Refunds Initiation: May 20, 2025
- Shares Credited to Demat: May 20, 2025
- Listing Date: May 21, 2025
IPO Details
- Issue Size: ₹29.75 Crores
- Price Band: ₹96 to ₹101 per share
- Face Value: ₹10 per share
- Lot Size: 1,200 shares
- Minimum Investment: ₹1,21,200 (at the upper price band)
- Total Shares Offered: 29,46,000
- Market Maker Reservation: 1,47,600 shares
- Listing Platform: NSE SME
- IPO Type: Book Building
Promoters of Accretion Pharmaceuticals Limited
The promoters of Accretion Pharmaceuticals Limited are four seasoned professionals, each bringing extensive experience and expertise in the pharmaceutical industry. Here’s a detailed overview of each promoter:
Mr. Vivek Ashok Kumar Patel – Promoter & Managing Director
- Educational Background: MBA in Pharmaceutical Management from DY Patil Institute; Bachelor’s in Pharmacy from LJIP, Ahmedabad.
- Professional Experience: Over 14 years in the pharmaceutical sector. Notably served as a Marketing Executive at Merck Ltd., a German multinational corporation, for three years, gaining insights into marketing, logistics, and finance.
- Role at Accretion Pharmaceuticals: As Managing Director, Mr. Patel oversees procurement, production, quality control, supply chain management, and general management, contributing significantly to the company’s strategic direction and operational success.
Mr. Harshad Nanubhai Rathod – Promoter, Executive Director & CFO
- Educational Background: Bachelor’s in Pharmacy from Gujarat University; MBA from Madhyanchal Professional University, Bhopal.
- Professional Experience: Over 14 years in the pharmaceutical industry. Previously served as the Marketing Head at Recspeed Healthcare, where he honed his strategic acumen.
- Role at Accretion Pharmaceuticals: As Executive Director and CFO, Mr. Rathod is responsible for financial planning, guiding business expansions, and fostering key business relationships, playing a pivotal role in shaping the company’s strategic direction.
Mr. Hardik Mukundbhai Prajapati – Promoter & Executive Director
- Educational Background: Bachelor’s in Pharmacy from LJIP, Ahmedabad; Master’s in Pharmacy from Gujarat Technological University (GTU).
- Professional Experience: Over 14 years in pharmaceutical production. Gained valuable manufacturing experience at Lincoln Pharmaceuticals Ltd. His master’s project focused on the formulation and development of controlled porosity osmotic pump tablets, which was published in “Inventi Journals” on 12/06/2012.
- Role at Accretion Pharmaceuticals: Mr. Prajapati is actively involved in overseeing day-to-day administrative and production operations, leveraging his extensive expertise in pharmaceutical production.
Mr. Mayur Popatlal Sojitra – Promoter & Executive Director
- Educational Background: Bachelor’s in Pharmacy from Gujarat University; MBA in International Business from the University of Greenwich, London.
- Professional Experience: Over 12 years in the pharmaceutical industry. Known for his ambitious approach and ability to achieve milestone-driven results, transforming innovative ideas into thriving business ventures.
- Role at Accretion Pharmaceuticals: Mr. Sojitra plays a critical role in driving regulatory market expansion and fostering business growth within the pharmaceutical sector. He oversees the company’s production processes, international sales, and marketing operations, and is instrumental in cultivating key business relationships.
These four promoters collectively hold a 96% stake in Accretion Pharmaceuticals Limited, reflecting their significant commitment and influence in the company’s operations and strategic decisions.
Company Overview
Established in 2012 and based in Sanand, Ahmedabad, Gujarat, Accretion Pharmaceuticals Limited specializes in manufacturing and marketing a diverse range of pharmaceutical products, including:
- Tablets
- Capsules
- Oral liquids
- External preparations (ointments, creams, gels, lotions, medicated shampoos, mouthwashes, dusting powders)
- Oral powders (sachets, dry syrups)
The company operates through various models:
- Direct sales in domestic and export markets
- Contract manufacturing
Accretion Pharmaceuticals Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 1200 | ₹1,21,200 |
| Retail (Maximum) | 1 | 1200 | ₹1,21,200 |
| HNI (Minimum) | 2 | 2,400 | ₹2,42,400 |
- Lot Size: 1,200 shares per lot.
- Price Band: ₹96 to ₹101 per share.
- Minimum Investment: ₹1,21,200 (at the upper price band of ₹101).
- Maximum Investment for Retail Investors: Limited to 1 lot (1,200 shares) as per SME IPO norms.
- Minimum Investment for HNIs: 2 lots (2,400 shares), amounting to ₹2,42,400.
Accretion Pharmaceuticals Limited IPO Promoter Holding
| Shareholding Category | Pre-Issue Holding | Post-Issue Holding |
|---|---|---|
| Promoters | 100.00% | 73.48% |
| Public Shareholders | 0.00% | 26.52% |
Accretion Pharmaceuticals Limited Financial Information
| Period Ended | 31 Dec 2024 | Mar 31 2024 | 31 Mar 2023 | Mar 31 2022 |
| Assets | ₹39.99 Crore | ₹27.05 Crore | ₹20.58 Crore | ₹17.74 Crore |
| Revenue | ₹35.75 Crore | ₹33.94 Crore | ₹29.53 Crore | ₹22.58 Crore |
| Profit After Tax | ₹5.24 Crore | ₹3.88 Crore | ₹0.10 Crore | ₹0.08 Crore |
| Net Worth | ₹13.58 Crore | ₹5.35 Crore | ₹3.84 Crore | ₹3.08 Crore |
| Reserves and Surplus | ₹5.41 Crore | ₹1.35 Crore | ₹0.00 | ₹0.00 |
| Total Borrowing | ₹13.79 Crore | ₹13.48 Crore | ₹8.47 Crore | ₹7.61 Crore |
Key Performance Indicator (KPI)
| KPI | Values |
|---|---|
| ROE | 72.47% |
| ROCE | 36.73% |
| Debt/Equity | 2.52 |
| RoNW | 72.47% |
| PAT Margin | 11.51 |
| Price to Book Value | 7.55 |
Objects of the Issue of Accretion Pharmaceuticals Limited IPO
1) Capital Expenditure for New Equipment and Machinery: ₹2.69 crore (9.04%)
- To acquire advanced equipment and machinery to enhance production capacity and efficiency.
2) Upgradation of Existing Manufacturing Facility: ₹4.65 crore (15.63%)
- To modernize and improve current manufacturing infrastructure, ensuring compliance with regulatory standards and boosting operational capabilities.
3) Repayment/Prepayment of Certain Borrowings: ₹1.60 crore (5.38%)
- To reduce existing debt, thereby improving the company’s financial leverage and reducing interest obligations.
4) Funding Working Capital Requirements: Amount not specified
- To support day-to-day operational expenses, including procurement of raw materials, inventory management, and other short-term financial needs.
5) General Corporate Purposes: Amount not specified
- To address other strategic and operational needs, such as marketing initiatives, administrative expenses, and unforeseen contingencies.
These strategic allocations are aimed at strengthening Accretion Pharmaceuticals’ manufacturing capabilities, improving financial health, and supporting overall business growth.
Strengths of Accretion Pharmaceuticals Limited IPO
- Experienced Promoters and Management Team: The company is led by seasoned professionals with extensive experience in the pharmaceutical industry, contributing to strategic decision-making and operational efficiency.
- Certified Quality Standards: Accretion holds multiple certifications, including ISO 9001:2015, ISO 14001:2015, and ISO 22000:2018, reflecting its commitment to quality, environmental, and food safety management systems.
- Diverse Product Portfolio: The company manufactures a wide range of products, such as tablets, capsules, syrups, ointments, and medicated cosmetics, catering to various therapeutic segments and markets.
- Robust Financial Growth: Accretion has demonstrated strong financial performance, with Profit After Tax (PAT) increasing from ₹10.39 lakhs in FY23 to ₹387.53 lakhs in FY24, indicating significant growth.
- Global Presence: The company has expanded its footprint to over 20 countries, including regions in Africa, Southeast Asia, and the Middle East, showcasing its international reach and market diversification
Risks of Accretion Pharmaceuticals Limited IPO
- Legal Proceedings: There is an ongoing legal case related to child labor law violations, which could impact the company’s reputation and operations if not resolved favorably.
- Regulatory Compliance: Operating in the heavily regulated pharmaceutical sector, any failure to comply with existing or future statutory and regulatory requirements could adversely affect the company’s business and financial condition.
- Operational Dependence on a Single Facility: Accretion operates only one manufacturing facility; any disruption in its operations could materially affect the company’s business and financial performance.
- Client Concentration: A significant portion of the company’s revenue is derived from a few clients. The loss of any major client could have a material adverse effect on business operations and profitability.
- Working Capital Intensive Operations: The company working capital intensive. Any inability to meet working capital requirements may adversely impact financial condition and growth prospects.
- Limited Operating History: With a relatively short operating history, it may be challenging for investors to evaluate the company’s historical performance or future prospects accurately.
- Reliance on Third-Party Testing: The company depends on third-party product testing. Any non-compliance or errors during the testing process could adversely affect business operations and financial condition.
- No History of Dividend Payments: Accretion has not declared any dividends to date, which may be a concern for income-seeking investors.
Investors should carefully consider these strengths and risks in the context of their investment objectives and risk tolerance before participating in the IPO.
Accretion Pharmaceuticals Limited IPO Contact Details
Registered Office Address
Accretion Pharmaceuticals Limited
29, Xcelon Industrial Park-1
Behind Intas Pharmaceuticals
Vasna-Chacharwadi
Sanand, Ahmedabad – 382213
Gujarat, India
Phone Numbers
- +91-96243 81960
- +91-97254 55277
Email Addresses
Registrar & Transfer Agent (For IPO-related Queries)
KFin Technologies Limited
Selenium Tower-B, Plot 31 & 32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad – 500032
Telangana, India
- Phone: +91 40 6716 2222
- Toll-Free: 1800 309 4001
- Email: reachus@kfintech.com
- Investor Grievance Email: investor.grievance@kfintech.com
- Website: www.kfintech.com
Integrity Infrabuild Developers Limited IPO Details
Virtual Galaxy Infotech Limited IPO Review
Manoj Jewellers Limited IPO Review: Dates, Price and Full Details
Disclaimer: The content on this website is intended for informational purposes only and should not be interpreted as financial or investment advice. Engaging in stock market activities involves inherent risks, and outcomes can be unpredictable. While we strive to provide accurate and up-to-date information, we do not make any guarantees regarding the completeness or reliability of the content. Any investment decisions you make should be based on your own research and consultation with a qualified financial professional. We are not responsible for any financial gains or losses resulting from actions taken based on the information provided here. Always invest wisely and at your own risk.
