Accent Microcell IPO Opens for Subscription

Accent Microcell IPO Opens for Subscription

Accent Microcell IPO Opens for Subscription

Accent Microcell’s initial public offering (IPO) is scheduled to open for subscription on December 8 and will close on December 12. The price band for the IPO is set between ₹133 to ₹140 per share, with a lot size of 1,000 shares. Investors can bid for a minimum of 1,000 shares and in multiples thereafter. The face value of each share is ₹10, making the issue price 13.30 to 14.00 times the face value at the lower and upper price bands, respectively. Anchor investor allocation is slated for December 7.

Company Profile and Financials

Accent Microcell Limited specializes in manufacturing premium cellulose-based excipients, primarily serving food, cosmetic, nutraceutical, and pharmaceutical industries. The company operates from two state-of-the-art manufacturing sites in Dahej SEZ, Bharuch and Pirana Road, Ahmedabad. The company reported a rise in revenue from ₹165.71 crore in FY22 to ₹204.19 crore in FY23, with a PAT of ₹13.01 crore in FY23, more than doubling from ₹5.89 crore in FY22. For Q1 of FY2023-24, it recorded a PAT of ₹7.06 crore.

IPO Details and Usage of Proceeds

The IPO, valued at ₹78.40 crore, consists entirely of a fresh issue of 5,600,000 equity shares; there is no offer for sale (OFS) component. The offering includes allocations for anchor investors, market makers, qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail individual investors (RIIs). The company plans to use the net proceeds to construct a new plant in Navagam Kheda, Gujarat, for the production of carboxymethylcellulose (CMC), sodium starch glycolate (SSG), and croscarmellose sodium (CCS), with commercialization expected by April 2025.

Corporate Capitalventures Pvt Ltd is the book running lead manager for the IPO, with Kfin Technologies Limited as the registrar. Prabhat Financial Services acts as the market maker.

The company’s promoters include Vinodbhai Manibhai Patel, Ghanshyam Arjanbhai Patel, Nitin Jasvantbhai Patel, and Vasant Vadilal Patel. Its listed peer is Sigachi Industries Limited, which has a P/E of 16.70.

Grey Market Premium (GMP)

The IPO’s GMP today is +110, indicating shares were trading at a ₹110 premium in the grey market. Based on the upper end of the IPO price band and the current GMP, the estimated listing price of Accent Microcell shares is ₹250 apiece, which is 78.57% higher than the IPO price of ₹140. The grey market premium reflects investors’ willingness to pay more than the issue price.

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