What You Need to Know
- IPO Type: Fully Offer For Sale (OFS)
- Size: ₹3,395 crore via sale of ~5.96 crore shares
- Price Band: ₹540–₹570 per share
- Lot Size: 26 shares per lot (~₹14,820 minimum investment)
- Subscription Window: July 14–July 16, 2025
- Registrar & Lead Managers: KFin Technologies (Registrar); JM Financial, Citigroup, JP Morgan, Nomura (Lead Managers)
- Allotment Date: July 17, 2025
- Listing Date: Anticipated July 21, 2025 on NSE & BSE
- GMP (Grey Market Premium): ₹116–156 → implies potential listing price ₹726 (~27% premium)
Price Band Explained
The IPO’s price band has been fixed at ₹540–₹570, meaning applications can be made within this range.
The higher end signals valuation confidence. The lot size of 26 shares makes the smallest retail participation worth ₹14,820 – accessible for individual investors.
Timeline at a Glance
- Issue Opens – July 14, 2025
- Issue Closes – July 16, 2025
- Allotment – July 17, 2025
- Listing Day – July 21, 2025
Subscription Status: Strong Initial Demand
Days 1–2 Summary
- Day 1 (Jul 14): Subscribed 0.77× overall; NII 1.64×, Retail 0.62×, QIB 0.39×
- Day 2 (Jul 15): Surged to 3.48× total; NII at 10.26×, Retail 2.21×, QIB 0.62×
Multiple sources (India Today, 5paisa, Financial Express) confirm oversubscription driven by strong NII interest
Final Day (Jul 16)
Expected to cross ~5.7× overall by midday. Retail dipping lower, QIB demand remains cautious .
Grey Market Premium (GMP): What It Signals
- GMP Range: ₹116–156 → implies listing price ₹686–₹726
- Premium: ~20–27% above ₹570 upper band
GMP is an unofficial but telling indicator of demand. Though dynamic, such a premium often leads to strong listing gains.
Company: What Anthem Biosciences Does
- Industry: CRDMO (Contract Research, Development & Manufacturing Organization)
- Services: Handling small molecules and biologics, fermentation‑based APIs, probiotics, peptides, enzymes, nutritional actives, biosimilars
- Foundation: Established in 2006, headquartered in Bengaluru
- Scale: 8,000+ projects, 675+ clients; 242 active projects (Discovery to Commercial)
- Clients: Major biotech & pharma (55% revenue from Europe; top‑5 clients = 71% revenue – a concentration risk)
- Regulatory Approvals: cGMP compliance; USFDA, ANVISA, TGA, PMDA cleared
Financial Health: Growth with Margins
- FY23–FY25 CAGR:
- Revenue: acquired ₹1,844.6 Cr in FY25, a 32% increase
- Net Profit: ₹451 Cr (+8.2%)
- Margins:
- EBITDA margin: 36.8% in FY25 (from 41.5% in FY23); still well above peers (23.9–31.7%)
- PAT margin FY25: 23.4%; EPS ₹8.04
- Valuation:
- PE at upper band: ~70× (FY25 annualized EPS) – peers Syngene ~51×, Divis ~83×
Overall: Rapid growth, high margins, but fully priced. Brokerages deem this justified given strong fundamentals.
Market Sentiment & Brokerage Ratings
Broker Endorsements (Subscribe Recommendations)
- Arun Kejriwal (Kejriwal Research): Emphasized integrated business model, profitability, promoter holding >52%; rated ‘Subscribe’
- Anand Rathi: Called it ‘fairly priced’, praised growth drivers (specialty ingredients, peptides); rated ‘Subscribe’
- SBI Securities: Reiterated growth momentum, margin resilience, favored participation at cut‑off
- Mehta Equities (Rajan Shinde): Highlighted 8,000+ projects, strong technology adoption, fairness of QIB pricing
Risk Considerations
- High client/geographic concentration (Europe, top‑5 clients)
- Dependency on regulated approvals & rapidly evolving technologies
- Elevated PE ratio (~70x) despite higher than peer (~80–90x range)
Should You Subscribe?
| Investor Type | Recommendation |
|---|---|
| Retail Investors | Yes—Margins, growth, strong GMP. Watch QIB trends. |
| HNI/NII | Yes—Offer size & structure fit large portfolios. |
| QIB/Institutions | Cautious—High valuation & concentration risk. |
| Risk‑averse | Wait & watch post-listing or check financials closely. |
Long-Term Opportunity vs. Short-Term Gains
- Short-Term: GMP indicates ~20–27% listing gains—an attractive entry point.
- Long-Term: Sustained growth, robust margin profile, expanding service capability bode well, but client/concentration risk must be monitored.
- Valuation: Fully priced at ~70x PE—acceptable for growth but leaves limited buffer.
- Is Anthem Biosciences consider $400 million IPO in India?
- How to know chances of getting IPO?
- Is Anthem Biosciences IPO good?
- How to tell if an IPO is successful?
Subscribe if you’re bullish on India’s CRDMO segment and accept valuation hurdles. Watch QIB uptake and PMS/institutional behaviour before committing.
(Beyond July 21)
- Listing Premium: GMP may not fully reflect public sentiment—track listing day closely.
- Volume & Price Action: Five-day trend to indicate real investor appetite.
- QIB/NII Feedback: Institutional flow may drive secondary trend.
- Strategic Expansion: New client tie-ups, global regulatory approvals, capacity ramp-ups.
- Financial Activism: Pipeline progress, margin retention, international audits.
Anthem Biosciences vs Peers
| Metric | Anthem Biosciences | Syngene | Divi’s Labs |
|---|---|---|---|
| PE Ratio (FY25) | ~70× | ~51× | ~83× |
| EBITDA Margin | 36.8% | 24–32% | ~30% |
| Revenue Growth (FY24–25) | ~30% | ~15–20% | ~18–22% |
| Projects Completed | 8,000+ | 6,000+ | 5,000+ |
| Client Dependence | Top 5 → 71% | 50% | 45% |
Anthem Biosciences represents a cutting‑edge CRDMO with a strong pipeline, margin profile, and growth trajectory.
Its ₹3,395 Cr OFS shows robust investor confidence; GMP suggests ~25% upside.
Essential factors: Valuation, QIB uptake, listing day trend, post-listing volume.
Investor takeaway: Subscribe if you’re upbeat on biotech+pharma manufacturing and growth; value-conscious/institutional investors should monitor QIB movements closely.
