Indian pharmaceutical excipient manufacturer Accent Microcell kicked off its initial public offering (IPO) on Friday, witnessing a robust response from investors. The company seeks to raise Rs 78.40 crore through the issuance of equity shares priced between Rs 133 to Rs 140 each.
The IPO has attracted significant interest across investor categories, with subscriptions nearly thirty times the number of shares offered. Retail investors showed an overwhelming response, subscribing sixty times their allocated share, while high net-worth individuals (HNIs) subscribed fifty-two times over. Qualified institutional buyers (QIBs) also demonstrated solid support, subscribing more than seven times their quota.
Accent Microcell is known for its specialization in cellulose-based excipients, operating from two sites in Gujarat – Dahej SEZ and Pirana Road. The company is further expanding its manufacturing capabilities with the addition of sodium starch glycolate and carboxymethyl cellulose production at a new facility in Navagam Kheda. This expansion comes with an investment of Rs 54.4 crore and aims to meet growing demand both domestically and internationally.
The capital raised from the IPO is earmarked for this capacity expansion as well as for covering general corporate expenses. Accent Microcell's financial performance has been on an upward trend, with net profits rising to Rs 13.01 crore in FY23 from Rs 5.89 crore in FY22. Revenues have also seen a significant increase, reaching Rs 204.2 crore in FY23 up from Rs 165.7 crore in the previous fiscal year. Furthermore, the company had recorded a net profit of Rs 4.8 crore on revenues of Rs 132.6 crore in FY21, and a quarterly revenue of Rs 58.8 crore as of June FY24.
The company's international presence spans over 45 countries, including key markets such as the United States and China, indicating a strong global footprint.
The offering is divided among various investor segments: anchor investors with 15.96 lakh shares, market makers with 2.8 lakh shares, QIBs with 10.64 lakh shares, NIIs with 7.98 lakh shares, and retail investors with an offering of 18.62 lakh shares.
The IPO set to conclude on December 12 has started on a high note, reflecting investor confidence in Accent Microcell's growth trajectory and market position within the pharmaceutical excipient industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.