Accretion Pharmaceuticals has officially launched its Initial Public Offering (IPO), inviting investors to subscribe from May 14 to May 16. The IPO price range is set between ₹96 and ₹101 for each equity share, which has a face value of ₹10. Investors can participate by bidding for a minimum of 1,200 shares, with increments of 1,200 shares thereafter.
Overview of Accretion Pharmaceuticals
Founded in 2012, Accretion Pharmaceuticals specializes in manufacturing and selling a wide range of healthcare products, including tablets, capsules, and oral liquids. The company also offers contract manufacturing services, producing:
- Tablets and Capsules
- Oral Liquids and Syrups
- External Preparations (Ointments, Creams, Gels, Lotions)
- Ayurvedic and Herbal Products
The manufacturing facility is located in Sanand, Gujarat, ensuring high-quality production standards.
Competitors in the Market
According to the red herring prospectus (RHP), Accretion Pharmaceuticals competes with several publicly listed companies, including:
- Sakar Healthcare Ltd (P/E ratio of 48.89)
- Lincoln Pharmaceuticals Ltd (P/E ratio of 12.30)
- Sotac Pharmaceuticals Ltd (P/E ratio of 23.85)
Current Subscription Status
As of now, the Accretion Pharmaceuticals IPO has recorded a 49% subscription on its first day. The retail segment shows a strong interest with an 86% subscription rate, while the Non-Institutional Investor (NII) portion is at 19%. By 13:00 IST, bids for 1,279,200 shares had been placed against the total offering of 2,587,200 shares, as per reports from chittorgarh.com.
IPO Details and Funding Goals
The Accretion Pharmaceuticals IPO consists of a fresh issue of 2,946,000 equity shares, totaling ₹29.75 crore. Notably, there is no offer for sale (OFS) included in this IPO. The proceeds from this offering are earmarked for several key initiatives:
- Capital expenditures for acquiring new equipment
- Enhancements to the manufacturing facility
- Debt repayment
- Working capital needs
- General corporate purposes
Management and Market Maker Information
Jawa Capital Services Private Limited is serving as the book-running lead manager for the IPO, while Kfin Technologies Limited acts as the registrar. Gretex Share Broking Private Limited will serve as the market maker for the IPO.
Grey Market Premium Insights
As of today, the Grey Market Premium (GMP) for Accretion Pharmaceuticals stands at +20, suggesting that shares are trading at a ₹20 premium in the grey market. Based on the upper end of the IPO price band, the anticipated listing price could be around ₹121, reflecting a 19.80% increase over the IPO price of ₹101. This premium indicates a positive sentiment among investors regarding the company’s potential.
For more updates on IPOs, consider checking related articles on emerging market trends and investment opportunities.
