Silky Overseas Limited IPO...
28 Jun, 2025
Accretion Pharmaceuticals SME IPO
Accretion Pharmaceuticals is launching a SME Book‑Building IPO on NSE EMERGE, having filed its DRHP on January 8, 2025. The issue comprises up to 3,000,000 equity shares of ₹10 face value, with the exact price band yet to be announced. The company posted a turnover of ₹13.35 cr and PAT of ₹1.49 cr for FY 2023‑24, translating into an annualized revenue run‑rate of ₹35.7 cr and PAT run‑rate of ₹4.7 cr. Proceeds will fund capex, working capital and debt repayment. Promoters hold 96.28% pre‑issue.
Introduction
Accretion Pharmaceuticals Limited (“Accretion Pharma”) is set to tap the SME platform of the National Stock Exchange (NSE EMERGE) via a Book‑Building IPO. This marks the first public equity offering by the company since its conversion from a partnership into a public limited company in November 2023. The IPO will help the company scale up manufacturing capacity, upgrade facilities, shore up working capital and pare down borrowings — key steps for a fast‑growing pharma contract manufacturer.
Company Overview
Business Model & Operations
- Manufacturing footprint: Tablets, capsules, oral liquids, external preparations (ointments, gels, lotions, medicated shampoos) and oral powders (sachets, dry syrups).
- Revenue streams: Direct sales of in‑house formulations; contract manufacturing and loan‑licence manufacturing for third‑party marketers on a principal‑to‑principal basis.
- Certifications: ISO 9001:2015 (QMS), ISO 14001:2015 (EMS) and ISO 22000:2018 (Food Safety)
- Geographical reach: Present in 20+ countries, with plans to expand further.
Management & Shareholding
- Promoters: Harshad N. Rathod, Hardik M. Prajapati, Mayur P. Sojitra and Vivek A. Kumar Patel (collectively hold 96.28% pre‑issue).
- Board composition: Mix of promoter directors and independent professionals, fulfilling SEBI’s corporate governance norms for SMEs.
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Accretion Pharmaceuticals SME IPO
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Accretion Pharmaceuticals SME IPO Details
| Detail | Description |
|---|---|
| IPO Date | May 14, 2025 to May 16, 2025 |
| Listing Date | - |
| Face Value | ₹10 per share |
| Issue Price Band | ₹96 to ₹101 per share |
| Lot Size | 1,200 Shares |
| Total Issue Size | 29,46,000 shares (aggregating up to ₹29.75 Cr) |
| Fresh Issue | 29,46,000 shares (aggregating up to ₹29.75 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | NSE SME |
| Share Holding Pre Issue | 81,70,000 shares |
| Share Holding Post Issue | 1,11,16,000 shares |
| Market Maker Portion | 1,47,600 shares |
Accretion Pharmaceuticals SME IPO Timeline
| Detail | Description |
|---|---|
| IPO Open Date | Wed, May 14, 2025 |
| IPO Close Date | Fri, May 16, 2025 |
| Tentative Allotment | Mon, May 19, 2025 |
| Initiation of Refunds | Tue, May 20, 2025 |
| Credit of Shares to Demat | Tue, May 20, 2025 |
| Tentative Listing Date | Wed, May 21, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on May 16, 2025 |
Accretion Pharmaceuticals SME IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹1,21,200 |
| Retail (Max) | 1 | 1200 | ₹1,21,200 |
| HNI (Min) | 2 | 2400 | ₹2,42,400 |
Accretion Pharmaceuticals SME IPO Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| 100.00% | - |
Competitive Strength:
- 1. Certified, High Quality Manufacturing
- 2. Scale & Infrastructure
- 3. Diversified Product & Client Base
- 4. Global Footprint & Growth Culture
- 5. Strong Promoter Commitment
Accretion Pharmaceuticals SME IPO Financial Information
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Total Borrowing | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 30 Sep 2024 | 29.34 | 11.89 | 1.57 | 9.91 | - | |||||||||||||||||||||||||||||||||||
| 31 Mar 2024 | 27.05 | 33.94 | 3.88 | 5.35 | - | |||||||||||||||||||||||||||||||||||
| 31 Mar 2023 | 20.58 | 29.53 | 0.1 | 3.84 | - | |||||||||||||||||||||||||||||||||||
| 31 Mar 2022 | 17.74 | 22.58 | 0.08 | 3.08 | - | |||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 25.20% |
| ROCE | 11.73% |
| Debt/Equity | 2.52 |
| RoNW | 72.47% |
| PAT Margin | 11.51 |
| Price to Book Value | 7.55 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 4.74 | 2.82 |
| P/E (x) | 21.29 | 35.82 |
Objectives of the Issue
According to the Draft Red Herring Prospectus, net IPO proceeds will be deployed to:
- Capital expenditure towards purchase of new equipment and machinery.
- Upgradation of existing manufacturing facility to enhance capacity and technology.
- Repayment/prepayment of certain borrowings to optimize the balance sheet.
- Funding working capital requirements to support higher raw‑material procurement and inventory.
- General corporate purposes, including product registrations in overseas markets.
Conclusion
Accretion Pharmaceuticals’ SME IPO offers an entry into a certified contract-manufacturing play with modest financials but clear growth intent. The use of proceeds towards capacity expansion and working-capital strengthening fits the company’s stated growth trajectory. Investors should watch the final price band and peer valuations before deciding.
RHP:
DRHP:
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Frequently asked Questions (FAQs )
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1. What is the SEBI interim order about?
On May 6, 2025, SEBI issued an interim order restraining Synoptics Technologies Ltd (STL) and its promoters—Jatin Jagmohan Shah, Jagmohan Manilal Shah, and Janvi Jatin Shah—from accessing the securities market. The order alleges that STL diverted approximately ₹19 crore from its IPO proceeds under the guise of issue-related expenses, which was significantly higher than the ₹80 lakh disclosed in the Red Herring Prospectus (RHP).
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2. Who is First Overseas Capital Ltd (FOCL), and what role did it play?
FOCL was the lead manager for STL's IPO. SEBI found that FOCL, acting under the authority of the escrow agreement, instructed the bank to transfer funds purportedly for issue-related expenses. These transfers amounted to ₹19 crore, which SEBI deemed disproportionate and indicative of a scheme to siphon off funds.
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3. How much did Synoptics Technologies raise in its IPO?
STL raised a total of ₹54.04 crore through its IPO on July 13, 2023. This included ₹35.08 crore from the fresh issue of shares and ₹18.96 crore via an offer-for-sale by promoters.
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4. What specific allegations has SEBI made against STL and FOCL?
SEBI alleges that STL and FOCL orchestrated a scheme to divert IPO proceeds by transferring funds to entities under the pretense of covering issue-related expenses. Notably, ₹2 crore was routed to an individual who used the funds to purchase STL shares on the listing day, artificially inflating demand.
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5. What immediate actions has SEBI taken against the involved parties?
SEBI has barred STL and its three promoters from accessing the securities market until further notice. Additionally, FOCL is prohibited from taking on any new merchant banking assignments. For ongoing assignments, issuers are required to appoint independent monitoring agencies to oversee the use of IPO proceeds.
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6. Is SEBI investigating other IPOs managed by FOCL?
Yes, SEBI is examining 20 other SME IPOs managed by FOCL between May 2022 and April 2025 to determine if similar fund diversion schemes were employed.
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7. What is the significance of the ₹19 crore figure mentioned in the order?
The ₹19 crore represents approximately 54% of the fresh issue proceeds and 35% of the total IPO size. SEBI found this amount, transferred under the guise of issue-related expenses, to be grossly disproportionate to the ₹80 lakh disclosed in the RHP, indicating potential misuse of funds.
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8. What are the potential consequences for STL and its promoters?
If SEBI's allegations are substantiated, STL and its promoters could face further regulatory actions, including monetary penalties, disgorgement of ill-gotten gains, and extended bans from the securities market. Criminal proceedings could also be initiated depending on the severity of the violations.
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9. How does this case impact investors and the broader market?
Such cases erode investor confidence, particularly in the SME segment. They highlight the importance of stringent due diligence and the need for robust regulatory oversight to protect investors and maintain market integrity.
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10. What measures can investors take to protect themselves in future IPOs?
Investors should: • Thoroughly review the RHP and understand the company's business model and financials. • Be cautious of IPOs with high issue expenses relative to the total proceeds. • Monitor post-IPO fund utilization reports and disclosures. • Stay informed through official SEBI communications and reputable financial news sources.
