A Small-Cap Pharma Player with Big-Cap Dreams
Imagine a modest pharmaceutical company based in Sanand, Gujarat, that’s quietly making its way into over 20 international markets. Now, it’s knocking on Dalal Street’s doors with an IPO priced between ₹96–₹101.
Meet Accretion Pharmaceuticals Limited — a name that might not yet be a household one, but could soon be if its IPO performance and growth trajectory live up to the buzz.
But is this just another SME IPO, or is there something brewing behind the scenes?
Let’s break it down like a curious investor would — with questions, curiosity, and a dash of caution.
What’s the Real Story Behind Accretion Pharma?
Founded in 2012, Accretion has grown from a local drug manufacturer to an international supplier of tablets, capsules, and a range of formulations. What makes this company interesting isn’t just its product lineup — it’s the pace of its financial leap and global ambition.
- Presence in 20+ countries
- Manufacturing facility in Ahmedabad’s pharma zone
- Active in contract manufacturing and third-party licensing
In a market dominated by heavyweights, Accretion is trying to carve out a lean, focused path through innovation and expansion.
IPO Snapshot: The Numbers You Must Know
| IPO Details | Information |
|---|---|
| IPO Open Date | May 14, 2025 |
| IPO Close Date | May 16, 2025 |
| Issue Type | Book Built Issue (SME) |
| Price Band | ₹96 to ₹101 per share |
| Issue Size | ₹29.75 crores |
| Lot Size | 1200 shares (₹1,21,200) |
| Listing Exchange | NSE SME |
| Allotment Date | May 19, 2025 |
| Listing Date | May 21, 2025 |
Financial Leap: Growth That Turns Heads
Let’s talk numbers. Because in the world of investing, numbers don’t lie — unless you don’t look closely.
| Financial Year | Revenue (₹ Cr.) | Profit (₹ Cr.) |
|---|---|---|
| 2022 | ₹22.58 | ₹0.08 |
| 2023 | ₹29.53 | ₹0.10 |
| 2024 | ₹33.94 | ₹3.88 |
In just a year, profit has shot up from ₹0.10 crore to ₹3.88 crore. That’s a 3,780% increase in bottom line, indicating something clicked — better cost control, demand surge, or both.
Key Ratios: Strong Signals or Red Flags?
Here’s a quick scan of its vital signs:
- EPS (FY24): ₹9.69
- ROE: 72.80%
- ROCE: 36.73%
- PAT Margin: 11.51%
- Debt-to-Equity Ratio: 2.52 (A bit high)
So, while the profitability is juicy, the leverage needs watching. High RoE and RoCE suggest capital efficiency — but a 2.5x debt ratio is your reminder to not skip the fine print.
Accretion vs Peers: How Does It Stack Up?
| Company | EPS | P/E Ratio | RoNW |
|---|---|---|---|
| Accretion Pharma | ₹9.69 | Not Disclosed | 72.47% |
| Sakar Healthcare | ₹5.64 | 65.30 | 4.45% |
| Lincoln Pharmaceuticals | ₹46.58 | 12.58 | 15.74% |
| Sotac Pharmaceuticals | ₹5.24 | 23.09 | 11.91% |
If RoNW is your compass, Accretion wins hands down. But without a confirmed P/E ratio, it’s hard to say whether the stock is undervalued or hyped.
Where Will the IPO Money Go?
Like every smart business, Accretion is raising money for a blend of expansion and clean-up:
- Purchase of new manufacturing equipment
- Upgradation of existing facility
- Debt repayment
- Working capital needs
- General corporate purposes
This mix of growth and de-leveraging is typically a green flag for long-term investors.
Real Talk: Should You Apply?
Here’s how you can think about it:
Reasons to Consider
- Rapid profit growth and solid margins
- Strong international presence
- Efficient capital use (high RoE and RoCE)
Reasons to Be Cautious
- High debt levels
- SME IPOs tend to be volatile
- Minimum application cost is ₹1.21 lakh (not retail-friendly)
So, it’s not for everyone — but if you’re a long-term investor who believes in India’s healthcare exports story, this could be a “small-cap pharma rocket” you’d want to track.
FAQs: Quick Answers for the Curious Investor
Q1: What is the lot size for Accretion Pharmaceuticals IPO?
A: Minimum lot is 1200 shares, costing ₹1,21,200.
Q2: Is Accretion Pharmaceuticals a listed company?
A: Not yet. The listing is scheduled on NSE SME on May 21, 2025.
Q3: Can retail investors apply?
A: Yes, but due to the high ticket size, only one lot can be applied under the retail quota.
Q4: Is Accretion profitable?
A: Yes, it posted ₹3.88 crore profit in FY24 — a huge leap from the previous year.
Q5: How can I apply for the IPO?
A: Through ASBA via your bank or UPI-enabled brokers like Zerodha, Groww, etc.
Final Word: Pharma Focused or Just Pharma Curious?
Accretion Pharmaceuticals may not be the next Sun Pharma yet — but it’s trying to write its own script. For seasoned IPO investors or long-term pharma believers, this IPO offers both promise and risk.
Planning to apply or sitting this one out?
Drop your thoughts in the comments, or explore more SME IPOs on our blog!