Accent Microcell Ltd. IPO : Review, Valuation, Date & GMP

Accent Microcell Limited IPO - Complete Overview

Established in 2001 by a dynamic group of experienced individuals in the pharmaceutical field, Accent Microcell has become a respected name in the industry. The company is well-known for its expertise in manufacturing and supplying excipients and their derivative products.

Serving customers in over 45 countries, including the US, Canada, Germany, the UK, Japan, and China, Accent Microcell Ltd specializes in Microcrystalline Cellulose (MCC), a fine white powder derived from refined wood pulp. The company manufactures 22 different types of MCC with varying particle sizes, catering to the pharmaceuticals, nutraceuticals, food, and cosmetics industries.

The global pharmaceutical industry is substantial, valued at approximately $209.85 billion in 2021 and expected to reach $352.98 billion by 2030, with an annual growth rate of 5.9%.

 

What does the company do?

Turning their focus to the pharmaceutical sector in India, it stands as the third-largest producer by volume. Over the past nine years, it has demonstrated a growth rate of 9.43% annually. Accent Microcell Ltd, a key player in this industry for 11 years, is recognized for producing high-quality materials used in pharmaceuticals, food, cosmetics, and more. 

 

 

Accent Microcell Limited IPO Overview

The Accent Microcell Limited IPO date is slated to be open for subscription from December 8, 2023, to December 12, 2023. This NSE SME IPO follows a Book Built Issue IPO.

The Accent Microcell Limited IPO price is fixed at Rs.133 to Rs.140 per share. The upcoming NSE SME will be listed on December 15, 2023.

The total issue size of this IPO amounts to Rs.78.40  CR. Within this total issue, 35% is issued to retail investors.

 

Accent Microcell Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	8 December 2023
IPO Closing Date	12 December 2023
IPO Allotment Date	13 December 2023
Refund initiation	14 December 2023
IPO Listing Date	15 December 2023

 

Accent Microcell Limited IPO Details

IPO opening & closing date	8 December to 12 December 2023
Face value	Rs.10 per share
Issue Price	Rs.133 to Rs.140 per share
Lot Size	1000 Shares
Price of 1 lot	Rs.1,40,000
Total Issue Size	5,600,000 shares  (aggregating up to Rs.78.40 Cr)
Fresh issue	5,600,000 shares  (aggregating up to Rs.78.40 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

 

Accent Microcell Limited IPO Lot Details

Application	Lots	Shares
Minimum Lot Investment (Retail)	1 lot	1000
Maximum Lot Investment (Retail)	1 lot	1000
Minimum Lot Investment (HNI)	2 lot	2000

 

Accent Microcell Limited IPO Reservation

QIB Shares Offered	Not more than 50%
Retail Shares Offered	Not less than 35%
HNI Shares Offered	Not less than 15%

 

 

Company Financial

As of June 30 in FY 23, Accent Microcell Limited has seen significant financial growth, with Total Assets at Rs. 12,214.89 lakhs, Total Revenue at Rs. 5,992.95 lakhs, and Profit After Tax (PAT) at Rs. 705.53 lakhs. This reflects a notable increase from FY 22, indicating positive momentum and financial strength.

(Amount in Lakhs)

REVENUE-DISTRIBUTION PRODUCT WISE      

As of June 30 in FY 23, Accent Microcell Limited's sales distribution by product shows that about 73% comes from Pharmaceuticals, 11% from Nutraceuticals, and 17% from Food. In the previous fiscal year (FY 22), the percentages were roughly the same, and in the current FY 23, they remain consistent. 

( in % age)

REVENUE-DISTRIBUTION GEOGRAPHICAL WISE 

As of June 30 in FY 23, Companies sales are divided geographically, with 38.42% in Domestic Sales and 61.58% in Export Sales. In the previous fiscal year (F.Y. 22), Domestic Sales were 34.68%, and Export Sales were 65.32%. In the current FY 23, Domestic Sales are 36.58%, and Export Sales are 63.42%. 

( in % age)

 

Revenue By operations            

As of June 30 in FY 23, Revenue from Operations constitutes approximately 98.1% of Accent Microcell Limited's total Revenue from Operations. Other Operating Income makes up the remaining approximately 1.9%.

(Amount in Lakhs)

Particulars	JUN 30 - FY 23	FY 23	FY 22
Revenue from operations	5,880.56	20,418.76	16,571.13
Other Operating Income	112.39	277.98	182.84
Total Revenue from operations	5,992.95	20,696.75	16,753.97

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Building a factory in Navagam Kheda to make Croscarmellose Sodium ("CCS"), Sodium Starch Glycolate, and Carboxymethylcellulose (CMC).

• Handling regular company costs.

 

Promoters and Management of Accent Microcell Limited IPO

1. Mr. Vasant Vadilal Patel

2. Mr. Ghanshyam Arjanbhai Patel

3. Mr. Nitin Jasvantbhai Patel

4. Mr. Vinodbhai Manibhai Patel

 

Accent Microcell Limited IPO Lead Managers

•  Corporate Capitalventures Pvt Ltd

 

Peers of Accent Microcell Limited IPO

Accent Microcell Limited has a face value of Rs.10 per share, a Price-to-Earnings (P/E) ratio of 13.92, and Earnings Per Share (EPS) of Rs.10.06. While it’s peer Sigachi Industries Limited has a face value of Rs.10 per share, a P/E ratio of 16.70, and an EPS of Rs.13.52.

 

 

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's RHP and DRHP. Accent Microcell Limited IPO  is fixed at Rs.133 to Rs. 140 per share, with an EPS of Rs.10.06. Based on the issue price the company's P/E ratio is calculated at 13.92.

Dividend Policy

The company's dividend policy can change based on profits, plans, and economic conditions. While they paid dividends of Rs.103.22 in 2022 and Rs.103.54 in 2023, it doesn't guarantee future dividends, and there's no certainty about dividends on Equity Shares going forward.

 

 

IPO's Strengths

• Global presence in 45+ countries.

• Specialization in Microcrystalline Cellulose (MCC) with a diverse product range.

• Positioned in India's growing pharmaceutical sector.

• Diversified revenue across pharmaceuticals, nutraceuticals, and food.

 

IPO's Weaknesses

• Reliance on pharmaceutical sector revenue.

• Exposure to international market uncertainties.

• Post-issue reduction in promoter shareholding.

 

IPO GMP Today

The latest Grey Market Premium (GMP) for Accent Microcell SME IPO is Rs.202

 

Conclusion

In summary, Accent Microcell Limited's IPO looks promising with its expertise, global reach, and diverse product line. The planned expansion is a positive sign. However, investors should be cautious about the reliance on the pharmaceutical sector and international markets. The Grey Market Premium of Rs.120 indicates early interest, but thorough research is essential before making investment decisions. 

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Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

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