Accretion Pharmaceuticals IPO listing today. Check GMP ahead of debut

Synopsis

Accretion Pharmaceuticals, a Gujarat-based pharma manufacturer, concluded its SME IPO with a strong subscription of 7.31 times. The IPO, priced at Rs 96-101 per share, aims to utilize proceeds for capital expenditures and facility upgrades. Despite robust financial growth and international presence, the grey market premium remained flat, indicating market caution ahead of its NSE SME platform listing.

Accretion Pharmaceuticals, a Gujarat-based pharma manufacturer, concluded its Rs 29.75 crore SME IPO on May 16. The issue, priced between Rs 96 and Rs 101 per share, comprised a fresh issue of 29.46 lakh equity shares. Despite a strong subscription of 7.31 times, the grey market premium (GMP) has remained flat at Rs 0, suggesting a cautious market sentiment ahead of its listing on the NSE SME platform.

The IPO witnessed robust participation across investor categories: Qualified Institutional Buyers (QIBs) subscribed 12.14 times, retail investors 10.54 times, and Non-Institutional Investors (NIIs) 3.93 times.

Accretion Pharmaceuticals, established in 2012, specializes in manufacturing and marketing a diverse range of pharmaceutical products, including tablets, capsules, oral liquids, external preparations, and oral powders.

With a presence in over 20 countries across Africa, Southeast Asia, and the Middle East, Accretion has established itself as a significant player in the pharmaceutical sector.

Financially, the company has shown impressive growth. For the fiscal year 2024, Accretion reported a revenue of Rs 33.94 crore, up from Rs 29.53 crore in the previous year, and a profit after tax of Rs 3.88 crore, a substantial increase from Rs 0.10 crore in FY23. These figures indicate a strong upward trajectory in both revenue and profitability.

The proceeds from the IPO are earmarked for capital expenditures, including the purchase of new equipment and machinery, upgrading existing manufacturing facilities, repayment of certain borrowings, funding working capital requirements, and general corporate purposes.

Despite the strong fundamentals and investor interest, the absence of a grey market premium suggests a cautious approach from the market, possibly due to broader market conditions or sector-specific factors. Investors and market watchers will be keenly observing the stock's performance upon listing to gauge its reception in the public market.

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