Anthem Biosciences Gets SEBI Nod for ₹3,395 Crore IPO

Anthem Biosciences Limited, a prominent CRDMO (Contract Research, Development and Manufacturing Organisation) and specialty ingredient producer based in Bengaluru, has received the green signal from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). The public issue will amount to ₹3,395 crore, consisting entirely of an offer for sale (OFS) of equity shares by existing promoters and investors.

The company's Draft Red Herring Prospectus (DRHP) was filed with SEBI on December 31, 2024, and the observation letter was issued on April 3, 2025, which signifies regulatory approval to move ahead with the IPO.

IPO Structure: 100% Offer for Sale

The entire ₹3,395 crore IPO will be conducted through an Offer for Sale, meaning no fresh equity shares will be issued. Instead, the proceeds will go to the selling shareholders, who include:

• Promoters: Ganesh Sambasivam and K Ravindra Chandrappa

• Institutional Investors: Viridity Tone LLP and Portsmouth Technologies LLC

• Other Shareholders: Malay J Barua, Rupesh N Kinekar, Satish Sharma, Prakash Kariabettan, and K Ramakrishnan

There will be no capital infusion into the company itself through this IPO. The offering is structured to facilitate partial or full exits by early stakeholders and strategic investors.

The Book Running Lead Managers (BRLMs) for the IPO are:

• JM Financial Limited

• Citigroup Global Markets India Private Limited

• J.P. Morgan India Private Limited

• Nomura Financial Advisory and Securities (India) Private Limited

Business Overview: Integrated CRDMO and Specialty Ingredients

Founded in Bengaluru, Anthem Biosciences operates in the niche pharmaceutical and biotech services sector, offering:

• CRDMO services across the entire life cycle of New Chemical Entities (NCE) and New Biological Entities (NBE)

• Production and sale of specialized fermentation-based Active Pharmaceutical Ingredients (APIs)

These APIs include:

• Probiotics

• Enzymes

• Peptides

• Nutritional actives

• Vitamin analogues

• Biosimilars

This wide product portfolio makes Anthem one of the few Indian companies offering end-to-end integrated services in the pharmaceutical R&D and manufacturing space.

The company's advanced capabilities in fermentation-based processes set it apart in the competitive global biosciences ecosystem.

Strong Financial Performance

Anthem Biosciences has demonstrated robust financial growth, especially in the fiscal year ending March 31, 2024.

• Revenue from operations jumped by 34.3%, reaching ₹1,419 crore, up from ₹1,056 crore in FY23

• Profit after tax (PAT) stood at ₹367 crore for FY24

These numbers reflect operational efficiency, strong demand, and effective cost management. Such performance can potentially generate positive investor sentiment, especially when evaluating IPOs of profitable pharma service providers.

IPO Objective: Investor Exit, No Fundraising

As this IPO is 100% OFS, there is no fundraising for the company’s operations. The goal is to allow partial or complete exits for existing stakeholders.

This may appeal to investors looking for:

• Exposure to a cash-flow positive, high-margin biotech business

• Participation in a mature company with a strong global client base

• Confidence in corporate governance with renowned book running managers

However, retail and institutional investors should be mindful that no capital will be infused for growth or expansion, which may limit immediate reinvestment in R&D or new facilities post-listing.

Market Position and Strategic Importance

Anthem Biosciences operates in a strategic sector with increasing relevance:

• Global pharma outsourcing is growing as drug companies look to cut costs and speed up time-to-market

• India's biosciences industry is seeing rising investment due to skilled talent and cost-efficient infrastructure

• CRDMO services are essential for drug discovery, development, and manufacturing

With integrated capabilities and a diversified service offering, Anthem is well-placed to tap into the global demand for pharma innovation and biosimilar manufacturing.

Risk Factors and Considerations

Before subscribing, investors should consider:

• IPO is purely an exit mechanism, not a growth driver for the company

• Market volatility could affect listing performance

• Business is exposed to regulatory and compliance risks related to international pharma norms

• Competition from other global CRDMOs in Asia and Europe

However, the company’s financial stability, sector relevance, and clear operational niche help mitigate some of these concerns.

Final Word: Strong Candidate in Pharma IPO Space

The Anthem Biosciences IPO offers an opportunity for investors to gain exposure to a high-growth, high-profit pharmaceutical services firm. While it doesn’t raise capital for the company directly, it does unlock liquidity for existing investors and increases public participation in a strategic sector.

Investors seeking long-term bets in biotech and healthcare manufacturing may find Anthem a compelling proposition, given its scale, service diversity, and revenue trajectory.

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