Accretion Nutraveda IPO Makes Stellar Debut with 48.06% Premium, Lists at ₹191 Against Tepid 1.83x Subscription

Accretion Nutraveda Ltd, a Gujarat-based company incorporated in 2021 engaged in manufacturing of Ayurvedic and Nutraceutical products in various dosage forms including tablets, capsules, oral liquids, powders, oils, and external preparations like balms, creams, and gels operating as Contract Development and Manufacturing Organization (CDMO) serving both domestic and international markets such as Sri Lanka, Singapore, and USA with products combining classical Ayurvedic principles with modern nutraceutical science to address areas like liver care, women's health, bone and joint health, cognitive support, and respiratory wellness with GMP, WHO-GMP, FSSC 22000, ISO 9001:2015, ISO 45001:2018, and Halal certified, made a stellar debut on BSE SME on Wednesday, February 4, 2026. After closing its IPO bidding between January 28-30, 2026, the company commenced trading with a robust premium of 48.06% opening at ₹191.00 and quickly hit upper circuit at ₹200.55 (up 55.43% from issue price).

Accretion Nutraveda Listing Details

Accretion Nutraveda launched its IPO at ₹129 per share with minimum investment of 2,000 shares costing ₹2,58,000. The IPO received tepid response with subscription of only 1.83 times - individual investors at 2.19 times, NII at 2.08 times, QIB barely subscribed at 1.01 times, total applications of merely 818.

First-Day Trading Performance

Listing Price: Accretion Nutraveda opened at ₹191.00 representing massive premium of 48.06% from issue price of ₹129.00, quickly hit upper circuit at ₹200.55 (up 55.43%), with VWAP at ₹192.53, reflecting extremely positive market sentiment defying tepid subscription numbers as investors chased limited floating stock delivering exceptional gains for IPO allottees with turnover of ₹12.14 crore, traded volume of 6.31 lakh shares, and market capitalisation of ₹145.16 crore against pre-IPO market cap of ₹93.40 crore.

Growth Drivers and Challenges

Growth Drivers:

Diverse Product Portfolio: Wide range of Ayurvedic and Nutraceutical products in various dosage forms including tablets, capsules, oral liquids, powders, oils, balms, creams, and gels addressing liver care, women's health, bone and joint health, cognitive support, and respiratory wellness.

Quality Certifications: Manufacturing facility certified with GMP, WHO-GMP, FSSC 22000, ISO 9001:2015, ISO 45001:2018, Halal certification, and FSSAI license.

Strong Financial Metrics: Exceptional ROE of 68.54%, ROCE of 49.09%, healthy PAT margin of 16.59%, EBITDA margin of 23.36%, improving debt-to-equity ratio from 0.72 to 0.54.

Challenges:

Sustainability Concerns: Boosted top and bottom lines from FY25 onwards raise eyebrows over sustainability as company operates in highly competitive and fragmented Ayurvedic segment.

Small Scale Operations: Small equity capital post-IPO indicating longer gestation for mainboard migration, significant promoter dilution from 100% to 73.48%, tiny revenue base of ₹16.06 crore in FY25.

Limited Investor Interest: Only 818 total applications with QIB barely subscribed at 1.01 times.

Utilisation of IPO Proceeds

New Manufacturing Setup: ₹8.03 crore for purchase of machineries for new manufacturing setup expanding production capacity.

Working Capital: ₹5.50 crore for funding working capital requirements supporting Ayurvedic and Nutraceutical manufacturing operations.

Automation: ₹4.22 crore for purchase of machineries for automation in existing manufacturing unit enhancing operational efficiency.

General Corporate Purposes: ₹3.69 crore for general corporate purposes.

Financial Performance

Revenue: ₹14.07 crore for H1 FY26, ₹16.06 crore for FY25, significant growth from ₹5.20 crore in FY24 and ₹3.07 crore in FY23, reflecting rapid expansion in CDMO operations across domestic and international markets.

Net Profit: ₹2.33 crore in H1 FY26, ₹2.61 crore in FY25, growth from ₹0.82 crore in FY24 and ₹0.28 crore in FY23, demonstrating strong profitability improvement with post-IPO EPS of ₹6.44 and P/E of 20.02x.