The Rs 24.77 crore IPO of Accretion Nutraveda, which was open for subscription between January 28 and January 30, saw moderate investor response. The issue was subscribed 1.83 times overall, with retail investors subscribing 2.19 times.
Demand from non-institutional investors stood at 2.08 times, while the qualified institutional buyers’ portion was subscribed marginally at 1.01 times. The company had also raised Rs 7.02 crore from anchor investors ahead of the public issue.
The IPO consisted entirely of a fresh issue of 19.2 lakh equity shares, valuing the company at around Rs 93.4 crore at the upper end of the price band. Proceeds from the issue are proposed to be used for purchasing machinery for automation and a new manufacturing setup, meeting working capital requirements, and general corporate purposes.
Accretion Nutraveda is engaged in the manufacturing of Ayurvedic and nutraceutical products across multiple dosage forms, including tablets, capsules, liquids, powders and topical preparations.
The company operates as a contract development and manufacturing organisation, serving domestic clients as well as export markets such as Sri Lanka, Singapore and the US.
On the financial front, the company has reported steady growth from a low base. For the period ended September 30, 2025, it posted total income of Rs 14.07 crore and profit after tax of Rs 2.33 crore, compared with Rs 5.20 crore in revenue and Rs 0.82 crore in profit for FY24.The absence of a grey market premium suggests cautious sentiment ahead of listing, despite reasonable subscription numbers. Market participants note that SME listings can be volatile on debut, but in the absence of strong demand signals or a positive GMP, expectations are centred around a flat to muted listing.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)