Pharmaceutical firm Accent Microcell is planning an Initial Public Offering (IPO) to fund the establishment of a new production plant. The Ahmedabad-based company will issue 5.6 million shares at ₹10 each under the management of Corporate Capital Ventures and KFIN Technologies Limited's registration. The proceeds from the IPO, slated for listing on NSE's SME segment Emerge, will be invested in the construction of Unit-III, a new plant in Navagam Kheda, Gujarat.
The company plans to allocate ₹48.39 crore from the IPO proceeds towards the new plant this year, and an additional ₹6 crore in FY2025. Chairman Vasant V Patel expects the new facility to be operational by April 2025.
Accent Microcell specializes in the production of Microcrystalline Cellulose (MCC), a product with extensive application across industries such as pharmaceuticals and cosmetics. The company's MCC is used as a texturizer, anticaking agent, binder, lubricant, bulking agent, and diluent.
The decision to launch an IPO follows a robust financial performance by Accent Microcell in FY23. The company's revenue rose to ₹204.19 crore (INR100 crore = approx. USD12 million) from ₹165.71 crore in FY22 and its profit more than doubled to ₹13.01 crore from ₹5.89 crore in FY22. This growth was driven by advanced production capabilities, strategically located manufacturing facilities, and a strong supplier base.
The addition of the new plant will enhance Accent Microcell's existing infrastructure that includes two plants with a combined annual capacity of 8,000 metric tonnes. The firm aims to use the capital raised from the IPO to fund CCS, SSG, CMC and MS production and other corporate needs at the new facility.
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