Accretion Nutraveda IPO Concludes Bidding: Day 3 Subscription Update and Key Highlights
The initial public offering of Accretion Nutraveda, which opened for subscription on January 28, has completed its three-day bidding journey, concluding today, Friday, January 30. This SME IPO has witnessed a decent response from investors across categories, setting the stage for its upcoming listing on the BSE SME platform.
IPO Subscription Status and Financial Details
As of 4:10 PM on the final day of bidding, the Accretion Nutraveda IPO was subscribed 1.83 times overall. The subscription breakdown reveals interesting investor appetite:
- Retail Investors: 2.19 times subscribed
- Non-Institutional Investors (NIIs): 2.08 times subscribed
- Qualified Institutional Buyers (QIBs): 1.01 times subscribed
The company has received bids for 49.51 lakh shares against the total offer of 1.32 crore shares. The IPO, with a price band of ₹122-129 per share, aims to raise approximately ₹24.77 crore through a fresh issue of 19 lakh shares, with no offer for sale component.
Grey Market Premium and Listing Expectations
Investor sentiment appears cautious, as indicated by the grey market premium (GMP) remaining at ₹0 on January 30. This suggests the stock is likely to debut at its upper price band of ₹129, matching the IPO price. The grey market premium typically reflects investor willingness to pay above the issue price before official listing.
Allotment, Listing Timeline and Investment Details
The IPO allotment is scheduled for Monday, February 2, with successful applicants expected to receive their shares on Tuesday, February 3. Refunds for non-allottees will be processed on the same day. The tentative listing date on the BSE SME platform is Wednesday, February 4.
For retail investors, the minimum investment requirement stands at ₹2.58 lakh, based on a lot size of 2,000 shares (requiring 2 lots or 400 shares).
Utilization of Proceeds and Business Overview
The net proceeds from this public offering will be strategically deployed to strengthen the company's operations and expand its manufacturing capabilities:
- ₹4.22 crore for purchasing machinery to enhance automation at existing facilities
- ₹8.03 crore for acquiring machinery for a new manufacturing setup
- ₹5.50 crore for meeting working capital requirements
- Remaining funds for general corporate purposes and growth initiatives
Accretion Nutraveda, incorporated in 2021, operates as a Contract Development and Manufacturing Organization (CDMO) specializing in Ayurvedic and nutraceutical products. The company produces various dosage forms including tablets, capsules, oral liquids, powders, oils, and external applications like balms, creams, and gels.
Market Presence and Product Portfolio
The company serves both domestic and international markets, including Sri Lanka, Singapore, and the United States. Its product portfolio uniquely blends traditional Ayurvedic formulations with modern nutraceutical science, addressing key health segments:
- Liver care and detoxification
- Women's wellness and hormonal balance
- Bone and joint support
- Cognitive health and mental clarity
- Respiratory care and immunity
Anchor Investment and Issue Management
Ahead of the public subscription opening on January 27, the company secured ₹7 crore from anchor investors, providing initial confidence in the offering. The issue is managed by Sobhagya Capital Options Pvt. Ltd. as the book-running lead manager, with Kfin Technologies Ltd. serving as registrar. Sunflower Broking Pvt. Ltd. acts as the market maker for the company.
As the bidding window closes, market participants will now await the allotment process and subsequent listing, which will provide the true market valuation for this Ayurvedic nutraceutical manufacturer's public debut.
