Accretion Pharmaceuticals IPO: Issue subscribed 1.12x on day 1; check GMP, issue details, more

Accretion Pharmaceuticals IPO has opened for subscription on Wednesday, May 14 and will conclude on Friday, May 16. Accretion Pharmaceuticals IPO price band has been set in between ₹96 to ₹101 per equity share, with a face value of ₹10 each. Investors can place bids for a minimum of 1,200 equity shares and in increments of 1,2000 shares thereafter.

Accretion Pharmaceuticals Limited, established in 2012, is a company engaged in the production and sale of tablets, capsules, and various healthcare products.

The firm also provides contract manufacturing services. Its offerings include the manufacture and marketing of Tablets, Capsules, Oral Liquids, External Preparations (such as Ointment, Cream, Gel, Lotion, Medicated Shampoo, Mouthwash, and Dusting Powder), as well as Oral Powder (in Sachets and Dry Syrup form). The company operates its manufacturing facility in Ahmedabad, Sanand, Gujarat.

The array of products and services offered by the company encompasses Tablets and Capsules, Oral Liquids and Syrups, External Preparations, along with Ayurvedic and Herbal Products.

According to the red herring prospectus (RHP), the company's publicly listed competitors include Sakar Healthcare Ltd (with a Price-to-Earnings ratio of 48.89), Lincoln Pharmaceuticals Ltd (with a P/E of 12.30), and Sotac Pharmaceuticals Ltd (with a P/E of 23.85).

Accretion Pharmaceuticals IPO subscription status is 1.12 times, on day 1. The retail portion is subscribed 1.86 times, and NII portion is booked 51%.

The company has received bids for 28,95,600 shares against 25,87,200 shares on offer, according to data on chittorgarh.com

Accretion Pharmaceuticals IPO consists of a fresh issue of 29,46,000 equity shares, aggregating to ₹29.75 crore. There's no offer for sale (OFS) component.

Accretion Pharmaceuticals IPO aims to use the net proceeds from the offering for various purposes, including capital expenditures for acquiring new equipment and enhancing the current manufacturing facility; paying off existing loans; covering working capital needs; and supporting general corporate activities.

Jawa Capital Services Private Limited serves as the book-running lead manager for the Accretion Pharmaceuticals IPO, while Kfin Technologies Limited acts as the registrar for this offering. The market maker for the Accretion Pharmaceuticals IPO is Gretex Share Broking Private Limited.

Accretion Pharmaceuticals IPO GMP today is +16. This indicates Accretion Pharmaceuticals share price was trading at a premium of ₹16 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Accretion Pharmaceuticals share price is indicated at ₹117 apiece, which is 15.84% higher than the IPO price of ₹101.

According to the grey market activity over the last eight sessions, the IPO GMP is currently on the rise, indicating a potentially strong listing. The lowest GMP recorded is ₹0.00, while the highest stands at ₹18.00, as per the experts at investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

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