Anthem Biosciences Limited, a technology-driven Contract Research, Development and Manufacturing Organization (CRDMO), has launched its Initial Public Offering (IPO) with a total issue size of ₹3,395 Crores, entirely through an Offer for Sale (OFS) of 595.61 lakh shares by existing shareholders. The IPO opens for subscription on July 14, 2025, and closes on July 16, 2025.

The allotment date is expected to be July 17, 2025, and the company is scheduled to be listed on BSE and NSE on July 21, 2025.

About the Company

Anthem Biosciences operates as a fully integrated CRDMO, offering end-to-end services across drug discovery, development, and commercial manufacturing.

The company has both New Chemical Entity (NCE) and New Biological Entity (NBE) capabilities, making it one of the few Indian players with integrated service offerings across the pharmaceutical value chain.

Their state-of-the-art R&D infrastructure and manufacturing facilities cater to both Indian and global biotech clients. Their reputation is built on scientific innovation, regulatory compliance, and a global delivery model.

Leadership and Promoters

The company is led by Founder and CEO Mr. Ajay Bhardwaj, who has over 25 years of experience in the biopharma industry. The senior leadership team comprises industry veterans in drug research, formulation, and development services.

Their long-standing presence has helped Anthem emerge as a trusted CRDMO partner in global pharmaceutical markets.

IPO Details

• IPO Type: 100% Offer for Sale (No Fresh Issue)

• Issue Size: ₹3,395.00 Crores

• Price Band: ₹540 – ₹570 per share

• Lot Size: 26 shares

  • Retail Minimum Investment: ₹14,820

  • HNI Minimum Investment: 14 lots = ₹2,07,480

• Market Cap at ₹570/share: ₹32,011.77 Crores

• IPO Open: July 14, 2025

• IPO Close: July 16, 2025

• Allotment Date: July 17, 2025

• Tentative Listing: July 21, 2025

• Listing Exchanges: BSE and NSE

Anchor Investor Participation

Anthem Biosciences raised a whopping ₹1,016.02 Crores from Anchor Investors at ₹570 per share. A total of 1,78,24,999 equity shares were allocated to anchor investors.

This strong anchor response shows confidence among institutional investors in the company’s business model and market potential.

Lead Managers include:

• JM Financial Limited

• Citigroup Global Markets India Pvt Ltd

• J.P. Morgan India Pvt Ltd

• Nomura Financial Advisory & Securities (India) Pvt Ltd

Registrar: KFin Technologies Limited

IPO GMP and Expected Listing

As per the latest grey market reports (as of July 10, 2025):

• IPO Price: ₹570

• GMP: ₹70

• Expected Listing Price: ₹640

• Potential Listing Gain: 12.28%

While GMPs are unofficial and vary based on demand and supply in the grey market, it does reflect positive sentiment around Anthem’s business fundamentals.

Live Subscription Status

As of 11:30 AM on July 15, 2025, the IPO was subscribed 1.38 times on Day 2 of the issue.

Given the large size of the IPO and the fact that it’s a pure OFS (no fresh capital to company), this level of interest is notable and reflects solid institutional demand.

Company Financials

Revenue from Operations:

• FY23: ₹1,133.99 Cr

• FY24: ₹1,483.07 Cr

• FY25: ₹1,930.28 Cr

EBITDA:

• FY23: ₹567.75 Cr

• FY24: ₹568.68 Cr

• FY25: ₹756.57 Cr

Profit After Tax (PAT):

• FY23: ₹358.18 Cr

• FY24: ₹367.31 Cr

• FY25: ₹451.25 Cr

The company has shown consistent revenue and PAT growth, suggesting a healthy operating model backed by research-based expansion.

Valuation Metrics

• Pre-Issue EPS (FY24): ₹8.07

• Post-Issue EPS (FY24): ₹8.04

• Pre-Issue P/E Ratio: 70.63x

• Post-Issue P/E Ratio: 70.94x

• Industry Average P/E: 81x

The IPO is fairly priced when benchmarked with peer pharmaceutical and contract manufacturing companies.

Return Ratios

• ROCE (FY24): 27.64%

• ROE (FY24): 20.82%

• RoNW: 20.82%

These strong return ratios reflect the company’s efficient capital utilization, consistent profitability, and strong internal accruals.

Use of IPO Proceeds

Since this IPO is an Offer for Sale, no funds will go to the company. Instead, proceeds will go to selling shareholders.

This limits any immediate expansion through IPO proceeds but signals shareholder exit or profit-booking and possibly secondary market liquidity enhancement.

Strengths of Anthem Biosciences

1. Integrated CRDMO operations – Few Indian companies operate across NCE + NBE with end-to-end manufacturing.

2. Innovation-driven business model – Long-term partnerships in drug discovery and formulation.

3. Global clientele – Presence in multiple regulated and semi-regulated markets.

4. Experienced management – Promoters and leadership with 25+ years of domain expertise.

5. Strong Financial Metrics – EBITDA margin strength, net profit growth, and good return ratios.

6. Positive GMP Trends – Indicates likely listing gains in short term.

Risks and Considerations

• No fresh proceeds – Company will not receive funds for growth, capex, or debt repayment.

• High Valuation – P/E close to 71x is high on absolute basis, though in line with peers.

• Regulatory exposure – Any adverse drug approval or compliance issue could affect business.

• Competitive Landscape – Faces strong global and domestic competition in CRDMO space.

Verdict: Should You Apply?

Despite being a pure Offer for Sale, Anthem Biosciences offers investors a chance to participate in a niche, high-growth sector with strong fundamentals and visible earnings trajectory.

With:

• Strong anchor investor backing,

• Positive grey market premium,

• Robust financial performance, and

• Fair valuation relative to peers,

the IPO presents a moderately attractive opportunity for investors looking for listing gains and long-term pharma sector exposure.

✅ Recommendation:

Apply – Suitable for investors seeking listing gains and quality exposure in the CRDMO sector.

Disclaimer:
This analysis is for educational and informational purposes only. It does not constitute investment advice or a solicitation to buy or sell any securities. Investors should perform their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions. All data is based on information available as of the publication date and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Savy Infra, Monika Alcobev, NSDL.

The Current active IPO are Anthem Biosciences, Spunweb Nonwoven.

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