Accent Microcell Files DRHP For NSE Emerge IPO, Plans Expansion

Accent Microcell, a manufacturer of cellulose-based excipients, announced the filing of its Draft Red Herring Prospectus (DRHP) with NSE Emerge, the company informed in an exchange filing on Monday. A total of 5,600,000 newly issued equity shares, each with a face value of Rs. 10 per share, are included in this offering, the company informed.

The company further stated that Corporate Capital Ventures has been appointed as the Book Running Lead Manager overseeing the issue, while KFIN Technologies Limited takes on the role of Registrar.

The Ahmedabad-based company intends to deploy the net proceeds from the offering to establish a new plant at Navagam Kheda for manufacturing Croscarmellose Sodium (CCS), Sodium Starch Glycolate (SSG) and Carboxymethylcellulose (CMC) as well as for general corporate purposes. Out of the total proceeds from fresh issue company proposes to invest Rs. 48.39 crore in the current financial year and Rs. 6 crore in FY2025 towards the establishment of Unit-III, the company's statement read.

The company predominantly manufactures Microcrystalline Cellulose (“MCC”), which is widely used as a texturiser, anticaking agent, binder, lubricant, bulking agent, and diluent with an extensive range of applications in pharmaceutical, nutraceutical, food, cosmetic and other industries. In addition to MCC, it produces other excipients such as Croscarmellose Sodium (CCS) and Magnesium Stearate (MS).

Vasant V Patel, Promoter and Chairman, Accent Microcell Limited, said, “Our advanced production capabilities, strategically located manufacturing facilities and strong supplier base for sourcing raw materials place us in an authoritative position in the industry. The demand for our products is propelled by the utilisation of microcrystalline cellulose in the pharmaceutical, personal care, cosmetic, food, and beverage industries. To enhance our capabilities further, we are planning to set up a new plant at Navagam Kheda in Gujarat for producing Croscarmellose Sodium (CCS), Sodium Starch Glycolate and Carboxymethylcellulose (CMC) with the help of funds raised from this IPO. The new facility is expected to be commercialised by April 2025.”

Accent Microcell registered a revenue of INR 204.19 Cr. in FY23, up from INR 165.71 Cr. in FY22. In the first quarter of FY24, ending June 30, the company clocked a revenue of INR 58.81 Cr. Accent Microcell’s profit (PAT) more than doubled to Rs. 13.01 crore in FY23 from Rs. 5.89 crore in FY22, the company said.