Accretion Pharmaceuticals IPO GMP, Subscription Status, and Key Details

Accretion Pharmaceuticals IPO GMP: Accretion Pharmaceuticals Ltd, a Gujarat-based pharmaceutical company, launched its Initial Public Offering (IPO) on May 14, 2025, aiming to raise ₹29.75 crore through the issuance of 29.46 lakh fresh equity shares. With a price band of ₹96 to ₹101 per share, the IPO has garnered significant attention from investors. This article provides an in-depth look at the IPO’s Grey Market Premium (GMP), subscription status, financials, and more, offering valuable insights for potential investors.

Accretion Pharmaceuticals IPO Overview

The IPO, which opened for subscription on May 14 and closes on May 16, 2025, is listed on the NSE SME platform. The company, established in 2012, specializes in manufacturing tablets, capsules, oral liquids, external preparations, and Ayurvedic products. It also provides contract manufacturing services from its facility in Sanand, Ahmedabad.

Investors can bid for a minimum of 1,200 equity shares and in multiples of 1,200 thereafter. The IPO does not include an Offer for Sale (OFS) component, with all proceeds directed toward the company’s growth initiatives.

IPO Objectives and Fund Allocation

The net proceeds from the IPO will be utilized for the following purposes:

• Capital Expenditure: ₹2.69 crore for acquiring new machinery and equipment.
• Facility Upgradation: ₹4.65 crore to enhance the existing manufacturing unit in Ahmedabad.
• Debt Repayment: ₹99.17 lakh to clear outstanding borrowings.
• Working Capital: ₹14.68 crore to meet operational needs.
• General Corporate Purposes: The remaining funds will support other business activities.

This strategic allocation underscores the company’s focus on expanding production capacity and strengthening its financial position.

Subscription Status: Strong Retail Interest

As of 2 PM on the first day of subscription (May 14, 2025), the IPO was subscribed 1.12 times, receiving bids for 28.95 lakh shares against the 25.87 lakh shares offered. The breakdown of subscription by investor category is as follows:

• Retail Investors: Subscribed 1.86 times, reflecting strong demand.
• Non-Institutional Investors (NII): Subscribed 0.51 times, indicating moderate interest.

The robust retail participation highlights investor confidence in the company’s growth potential, particularly in the SME segment.

Accretion Pharmaceuticals IPO GMP: A Positive Outlook

The Grey Market Premium (GMP) for Accretion Pharmaceuticals IPO is currently ₹16, as per data from investorgain.com. This suggests that the shares are trading at a premium of ₹16 over the upper price band of ₹101 in the grey market. Based on this, the estimated listing price is ₹117 per share, representing a potential gain of 15.84% over the IPO price.

Over the past eight sessions, the GMP has shown an upward trend, ranging from ₹0 to a high of ₹18. This rising GMP indicates strong investor optimism and suggests a potentially strong listing on the NSE SME platform.

Note: The grey market is an unofficial platform where shares are traded before listing. GMP reflects investor willingness to pay a premium but is not a guaranteed indicator of listing performance.

Financial Performance: Steady Growth

Accretion Pharmaceuticals has demonstrated consistent financial growth, making it an attractive proposition for investors. For the first nine months of FY2025 (ending December 2024), the company reported:

• Revenue: ₹35.66 crore, up from ₹33.66 crore in FY2024.
• Profit After Tax (PAT): ₹5.23 crore, compared to ₹3.87 crore in FY2024.

This improvement in revenue and profitability highlights the company’s operational efficiency and growing market presence in the pharmaceutical sector.

Competitive Landscape

According to the Red Herring Prospectus (RHP), Accretion Pharmaceuticals competes with listed peers such as:

• 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

The company’s focus on diverse product offerings and contract manufacturing services positions it well within the competitive pharmaceutical industry.

Anchor Investment: A Vote of Confidence

Before the IPO launch, Accretion Pharmaceuticals raised ₹2.13 crore from two institutional investors—Pink Oak Global Fund and Vikasa India EIF I Fund—during the anchor round on May 13, 2025. This early investment signals strong institutional backing and adds credibility to the IPO.

Key Details of the IPO

• Issue Size: 29.46 lakh equity shares, aggregating to ₹29.75 crore.
• Price Band: ₹96–₹101 per share (face value ₹10).
• Lot Size: Minimum 1,200 shares.
• Book-Running Lead Manager: Jawa Capital Services Pvt Ltd.
• Registrar: Kfin Technologies Ltd.
• Market Maker: Gretex Share Broking Pvt Ltd.
• Listing Platform: NSE SME.

Should You Invest in Accretion Pharmaceuticals IPO?

The Accretion Pharmaceuticals IPO presents a compelling opportunity for investors, particularly those interested in the SME pharmaceutical sector. Here are some factors to consider:

Pros:

• Strong GMP: A premium of ₹16 suggests a potential listing gain of ~15.84%.
• Robust Financials: Growing revenue and profitability indicate a healthy business model.
• Strategic Fund Use: Investments in machinery, facility upgrades, and debt repayment will fuel long-term growth.
• Retail Demand: High subscription from retail investors reflects market confidence.

Cons:

• Moderate NII Interest: Lower subscription from non-institutional investors may indicate cautious sentiment among larger players.
• Market Risks: As an SME IPO, the stock may face volatility post-listing.

Investors should evaluate their risk appetite and consult with financial advisors before applying. The IPO’s focus on capacity expansion and debt reduction, combined with a positive GMP, makes it an attractive option for those seeking exposure to the pharmaceutical sector.

Conclusion

The Accretion Pharmaceuticals IPO, with its ₹29.75 crore fresh issue, is poised to make a mark on the NSE SME platform. Backed by strong retail demand, a rising GMP, and solid financial performance, the IPO offers a promising investment opportunity. With proceeds earmarked for growth-oriented initiatives, the company is well-positioned to capitalize on the expanding pharmaceutical market. Keep an eye on the subscription trends and GMP updates as the IPO progresses toward its close on May 16, 2025.

For the latest updates on the Accretion Pharmaceuticals IPO, visit accretionpharma.com or check NSE’s official website.

Also Read: Suzlon Share Price Target 2025, 2030, 2035, 2040: Expert Forecast & Analysis

Tata Motors Q4 FY25 Results: Profit Plunges 51% Amid Tariff War Challenges