Accretion Pharmaceuticals Limited, founded in 2012 and headquartered in Ahmedabad, is a pharmaceutical manufacturer specializing in tablets, capsules, and healthcare products. The company operates a certified facility in Sanand, Gujarat, and engages in both direct sales and contract manufacturing for other brands. The Accretion Pharmaceuticals IPO is a book-built issue aiming to raise approximately ₹29.75 crores through a fresh issue of shares, with a price band set at ₹96 – ₹101 per share and a minimum lot size of 1,200 shares.
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Expert Opinions
The Accretion Pharmaceuticals IPO arrives at a time of growing investor interest in the pharmaceutical sector, driven by demand for affordable healthcare and export opportunities. The company’s strengths include a diversified product portfolio, a certified manufacturing facility in Gujarat, and a significant export presence across more than 20 countries, which supports revenue stability and global reach. However, risks include a high debt-to-equity ratio of 2.52, which could pressure profitability, and exposure to regulatory changes in both domestic and international markets.
For FY2024, Accretion reported an impressive ROE of 72.80% and ROCE of 36.73%, reflecting strong capital efficiency. From a long-term perspective, sustained growth will depend on prudent debt management, continued export expansion, and maintaining quality standards. Investors with a long-term horizon may find value if the company successfully leverages its operational strengths while navigating sector challenges.
Investor Considerations
Accretion Pharmaceuticals has demonstrated strong fundamentals in FY2024, with a high Return on Equity (72.80%) and Return on Capital Employed (36.73%), reflecting efficient capital use and profitability. The Indian pharmaceutical sector is experiencing robust growth, projected to reach $120–130 billion by 2030, supported by rising healthcare demand, government incentives, and export opportunities.
For FY2024, the IPO valuation shows a Price to Book Value of 7.55, PAT margin of 11.51%, and a relatively high debt/equity ratio of 2.52, indicating both profitability and significant leverage. Growth prospects are promising due to the company’s diversified product range and established export network. However, risks include high debt levels, working capital intensity, and regulatory challenges in domestic and international markets. Short-term investors may face volatility, while long-term investors could benefit if Accretion manages debt prudently and capitalizes on sector growth trends.
| Date | GMP | Trend |
|---|---|---|
| 20 May 2025 10.53 | ₹00 | --- |
| 19 May 2025 10.49 | ₹00 | --- |
| 18 May 2025 12.09 | ₹00 | --- |
| 17 May 2025 11.40 | ₹00 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Accretion Pharmaceuticals’ listing sentiment, though missed the magnitude. While the GMP of ₹0 suggested weak market enthusiasm with a flat listing, the stock actually listed at a significant discount of 21.78%. With a prediction error of 21.78%, the GMP correctly indicated negative market sentiment but failed to capture the full extent of the downside, demonstrating partial reliability as a sentiment indicator in this case.
Accretion Pharmaceuticals IPO Current GMP is ₹00.
Accretion Pharmaceuticals IPO Expected Returns is 0.00%.
Accretion Pharmaceuticals IPO estimated listing price is ₹101.