Introduction: A Look at the Ayurvedic & Nutraceutical Space
The Indian market for Ayurvedic and Nutraceutical products is witnessing significant expansion, driven by a growing consumer preference for natural healthcare solutions. Accretion Nutraveda Ltd. is stepping into this dynamic arena with its upcoming Initial Public Offering (IPO) on the BSE SME platform. This book-building issue offers an opportunity for investors to participate in a company focused on blending traditional Ayurvedic science with modern manufacturing standards. Before making an investment decision, a thorough understanding of the company's fundamentals, financial trajectory, and the nuances of the IPO itself is crucial.
Company Profile and Business Operations
Established in 2021, Accretion Nutraveda has quickly positioned itself as a manufacturer of high-quality Ayurvedic and Nutraceutical formulations. They produce a diverse range of products, including tablets, capsules, oral liquids, and topical preparations.
Core Business Verticals
- **Contract Development and Manufacturing (CDMO):** Serving both domestic clients and handling merchant exports to international locations like Sri Lanka, Singapore, and the USA.
- **Revenue Streams:** Domestic Sales & Merchant Exports (Loan License Basis) formed the majority of revenue in FY24-25, while Direct Exports show promising growth potential (contributing 38%).
Manufacturing Excellence and Certifications
The company operates a modern manufacturing facility in Gujarat, equipped to adhere to stringent quality protocols. This commitment is reflected in their numerous accreditations:
- GMP (Good Manufacturing Practices)
- WHO-GMP Certification
- FSSC 22000, ISO 9001:2015, ISO 45001:2018
- Halal Certified and FSSAI Licensed
Competitive Edge
- Strong foundation built by experienced promoters and management.
- A comprehensive and varied product pipeline addressing key health areas (liver, women's health, respiratory wellness).
- Robust quality assurance framework ensuring client trust.
The SME IPO Structure and Timeline: Key Dates
The Accretion Nutraveda IPO is a Book Building issue raising ₹24.77 Crores entirely through a fresh issuance of shares. Investors planning to participate must note the critical dates:
IPO Schedule at a Glance (Tentative)
| Milestone | Tentative Date |
|---|---|
| IPO Opens for Subscription | Wednesday, January 28, 2026 |
| IPO Closes for Subscription | Friday, January 30, 2026 |
| Basis of Allotment Finalization | Monday, February 2, 2026 |
| Initiation of Refunds / Share Credit to Demat | Tuesday, February 3, 2026 |
| Tentative Listing Date (BSE SME) | Wednesday, February 4, 2026 |
Progress Bar Visualization (Hypothetical Subscription Period)
*Note: The actual subscription status will be updated live once the IPO opens.
Pricing, Valuation, and Application Details
The price band set for this SME offering needs careful consideration against the company's pre-IPO capitalization.
IPO Parameters
₹122 to ₹129
₹10 per share
₹24.77 Crores (19.20 Lakh Shares)
₹93.40 Crores
Lot Size and Investment Requirement
| Investor Type | Lots Applied (Min/Max) | Shares (Min) | Minimum Investment (Upper Price) |
|---|---|---|---|
| Retail Individual Investor (RII) | 2 Lots (Minimum) | 2,000 Shares | ₹2,58,000 |
| HNI (Non-Institutional Bidders) | 3 Lots (Minimum) | 3,000 Shares | ₹3,87,000 |
Shareholding Structure and Investor Reservations
The allocation strategy shows a significant portion reserved for anchor investors, which is common in fresh issues. Post-IPO, the promoter group's stake sees a dilution.
Investor Category Allocation Summary
| Investor Category | Shares Reserved (%) |
|---|---|
| Qualified Institutional Buyers (QIB) (incl. Anchor) | 47.29% |
| Non-Institutional Investors (NII) | 14.37% |
| Retail Individual Investors (RII) | 33.33% |
| Market Maker Reservation | 5.00% |
Promoter Holding Shift
- **Pre-Issue Promoter Holding:** 100%
- **Post-Issue Promoter Holding:** 73.48% (Indicates dilution due to fresh issue)
Financial Health and Profitability Snapshot
Examining the restated financials reveals a significant acceleration in performance recently, which is a common feature in high-growth SME stories.
Key Financial Metrics (Amount in ₹ Crore)
| Metric | Mar '23 | Mar '24 | Sep '25 (Half Year) |
|---|---|---|---|
| Total Income | 3.07 | 5.20 | 14.07 |
| Profit After Tax (PAT) | 0.28 | 0.82 | 2.33 |
| Total Borrowing | 1.97 | 2.17 | 4.43 |
Valuation Ratios (KPIs)
| Indicator | Latest (Sep '25) | Post-IPO Valuation |
|---|---|---|
| Return on Equity (ROE) | 68.54% | N/A |
| PAT Margin | 16.59% | N/A |
| P/E Ratio (x) | 26.27 (Based on latest earnings) | 20.02 |
Purpose of the Issue and Intermediaries
The capital raised is earmarked for capacity expansion and automation, crucial steps for a manufacturing entity in a competitive space.
Use of Net Proceeds (Estimated Allocation)
- Purchasing Machineries for Automation in existing unit: ₹4.22 Cr.
- Purchasing Machineries for New Manufacturing Setup: ₹8.03 Cr.
- Funding Working Capital Requirements: ₹5.50 Cr.
- General Corporate Purposes: Remaining amount.
Key IPO Stakeholders
| Role | Intermediary Name |
|---|---|
| Book Running Lead Manager (BRLM) | Sobhagya Capital Options Pvt.Ltd. |
| Registrar to the Issue | Kfin Technologies Ltd. |
| Market Maker | Sunflower Broking Pvt.Ltd. |
SWOT Analysis of Accretion Nutraveda Ltd.
A balanced view requires assessing internal strengths and weaknesses alongside external opportunities and threats in the nutraceutical sector.
Strengths (Internal Positives)
- High ROE and ROCE figures indicate efficient capital utilization recently.
- Strong manufacturing certifications enhance product credibility globally.
- 100% promoter holding pre-IPO suggests high promoter confidence in the business plan.
Weaknesses (Internal Negatives)
- Relatively high total borrowing in proportion to assets.
- Recent rapid growth in top/bottom lines may raise sustainability questions for deeper scrutiny.
- Relatively small equity base post-IPO may delay migration to the main board.
Opportunities (External Potential)
- Global demand for certified Ayurvedic and herbal supplements is rising consistently.
- Funds raised are dedicated to capacity expansion and automation, improving future margins.
- Diversified export markets provide a hedge against domestic slowdowns.
Threats (External Risks)
- The segment is highly competitive and fragmented, with established players.
- Regulatory changes concerning herbal product classification or export norms could impact business.
- Dependence on the effectiveness of the new machinery post-investment realization.
Essential Contact and Registrar Information
For allotment status or procedural queries, having the correct contact details for the registrar is vital.
Registrar Details
**Kfin Technologies Ltd.** handles the administrative aspects of this issue.
- Contact Numbers: 040-67162222, 040-79611000
- Email: apl.ipo@kfintech.com
- Status Check Portal Link Available Post-Listing Process Commencement.
Company Corporate Address
Accretion Nutraveda Ltd.
27 Xcelon Industrial Park-1,
Vasna-Chacharwadi, Ta-Sanand,
Ahmedabad, Gujarat, 382213
- Phone: +91- 9904366177
- Email: compliance@accretionnutraveda.com
Frequently Asked Questions (FAQs) on Application
Q: What is the minimum investment for a retail applicant?
The minimum application is for 2 lots, totaling 2,000 shares, requiring an investment of approximately ₹2,58,000 based on the upper price band of ₹129.
Q: How can I apply for this IPO using a popular retail broker platform?
Most major brokers, including platforms like Zerodha, allow online applications through their dedicated portals or back-office consoles, primarily utilizing the UPI mechanism for swift payment authorization (mandate approval).
Q: When is the tentative listing date for Accretion Nutraveda?
The tentative listing date on the BSE SME exchange is scheduled for Wednesday, February 4, 2026.
Final Takeaway
Accretion Nutraveda presents an offering in a high-potential sector (Ayurveda/Nutraceuticals) backed by strong recent financial growth and clear capital expenditure plans for expansion. However, investors should balance this potential against the SME valuation metrics and the highly competitive nature of the industry. Thorough due diligence, especially reviewing the growth sustainability highlighted in the RHP, is essential before bidding above the minimum retail lot size.