Accent Microcell files DRHP with NSE Emerge

Accent Microcell, manufacturers of cellulose-based excipients, announced the filing of its Draft Red Herring Prospectus (DRHP) with NSE Emerge. The offering consists of a fresh issuance of 56,00,000 equity shares with a face value of Rs 10 for each share. Corporate Capital Ventures has been designated as the Book Running Lead Manager to the issue while KFIN Technologies is the 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 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 pharma, nutra, 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 of Accent Microcell, said, “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 revenue of Rs 204.19 crores in FY23, up from Rs 165.71 crores in FY22. In the first quarter of FY24, ending June 30, the company clocked a revenue of Rs 58.81 crores. Accent Microcell’s profit (PAT) more than doubled to Rs 13.01 crore in FY23 from Rs 5.89 crores in FY22.