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Accretion Pharmaceuticals IPO
Accretion Pharmaceuticals Ltd
₹1,15,200 /1200 sharesMinimum Investment
Accretion Pharmaceuticals IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| -- | ₹101.00 | ₹79.00 | -₹22.00 (21.78%) |
Accretion Pharmaceuticals IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 14 May ‘25 - 16 May ‘25 | ₹1,15,200 | 1,200 | ₹96 - ₹101 |
| Issue Size | IPO Doc |
|---|---|
| 29.75Cr | RHP PDF |
Subscription rate
As of 16 May'25, 05:00 PM
| Qualified Institutional Buyers | 4.78x |
| Non-Institutional Investor | 3.48x |
| Retail Individual Investor | 8.86x |
| Total | 6.13x |
About Accretion Pharmaceuticals
Founded in
2012
Managing director
Mr Vivek Ashok Kumar Patel
Parent organisation
Accretion Pharmaceuticals Ltd
Strengths & Financials of Accretion Pharmaceuticals
Strengths
Risks
The company claims to offer a wide range of healthcare products, including tablets, capsules, ointments, and oral powders. Accretion Pharmaceuticals believes its diverse product offerings have helped establish a strong customer base both in domestic and international markets.
The company is ISO 9001:2015 certified for quality management systems, ISO 14001:2015 certified for environmental management, and ISO 22000:2018 certified for food safety management systems.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 22.29 crore in FY22 to Rs 29.38 crore in FY23 and Rs 33.66 crore in FY24. PAT also increased from Rs 0.08 crore in FY22 to Rs 0.10 crore in FY23 and Rs 3.87 crore in FY24.
Accretion Pharmaceuticals operates in the highly regulated pharmaceutical sector and is subject to various laws and government regulations related to manufacturing, health, safety, environmental protection, and labour. Non-compliance with these statutory requirements, such as the Environment Protection Act, 1986, or other pollution-related laws, could result in legal actions, fines, or disruptions in manufacturing.
The company, its subsidiaries, promoters, and directors are involved in certain ongoing legal proceedings, including criminal complaints, statutory/regulatory actions, and tax-related matters. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
The company operates a single manufacturing facility located in Sanand, Ahmedabad, Gujarat. Any adverse political, social, or economic developments in this region could negatively impact the company’s operations.
The company generates a significant portion of its revenue from its top five customers. They accounted for Rs 7.71 crore (66 percent) of the company’s total revenue for the period ended July 20, 2024, Rs 19.20 crore (57.04 percent) in FY24, Rs 14.92 crore (50.79 percent) in FY23, and Rs 7.46 crore (33.48 percent) in FY22. Any failure to retain these key customers, expand the customer base, or a loss of business from these clients could adversely affect the company’s business and financial standing.
A significant portion of the company’s purchases is concentrated among its top 10 suppliers. They accounted for Rs 2.33 crore (33.41 percent) of the company’s total purchases for the period ended July 20, 2024, Rs 10.08 crore (38.17 percent) in FY24, Rs 7.47 crore in FY23, and Rs 2.19 crore (11.76 percent) in FY22. Any loss of business with one or more of these suppliers could adversely affect the business operations and profitability of Accretion Pharmaceuticals.
The company depends on third-party suppliers for the majority of its raw materials. Any delay, interruption, or reduction in the supply of these materials could adversely affect its operations and financial position. Additionally, Accretion Pharmaceuticals relies on third-party logistics providers for the timely delivery of materials. Disruptions in supply or logistics could impede the company's ability to deliver products on time, impacting its financial condition.
The company exports products to various international markets, including regions in Africa, Southeast Asia, and Latin America. These markets pose unique challenges, including geopolitical instability, changes in medical reimbursement policies, and exposure to currency fluctuations. Compliance with diverse and evolving regulations across these regions is critical, and failure to meet these requirements could lead to sanctions, shutdowns, or delayed product approvals.
The company has experienced negative cash flows from investing activities in the past years. It amounted to Rs 1.10 crore for the period ended July 20, 2024, Rs 0.11 crore in FY24, Rs 1.10 crore in FY23, and Rs 0.26 crore in FY22. If cash outflows continue to exceed inflows in the future, the company may face liquidity challenges.
Accretion Pharmaceuticals generates revenue from three primary market segments: direct export sales, domestic sales, and sales through contract manufacturing/loan licencing. Each segment carries distinct risks that could affect the company’s financial performance. Export sales expose the company to foreign exchange fluctuations, geopolitical risks, and changes in international trade policies. Domestic sales are influenced by local economic conditions and competitive pressures, while contract manufacturing introduces dependency on third-party merchant exporters and potential regulatory changes. Any negative developments in these markets could disrupt revenue streams.
As of July 20, 2024, the company had outstanding financial indebtedness of Rs 10.91 crore. Any failure to service or repay these loans can harm the company’s financial condition.
Accretion Pharmaceuticals Financials
*All values are in Rs. Cr
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Application Details of Accretion Pharmaceuticals IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹96 - 101 | ₹2 - 5 Lakh |
| High Networth Individual | ₹96 - 101 | ₹2 - 5 Lakh |
For Accretion Pharmaceuticals IPO, eligible investors can apply as Regular.