Understanding the Anthem Biosciences Limited IPO: What Investors Need to Know

Anthem Biosciences Limited: The Pioneer in CRDMO

Established in 2006 and headquartered in Bengaluru, Anthem Biosciences is an innovation-driven and technology-focused CRDMO. They offer a comprehensive suite of integrated services spanning the entire drug lifecycle – from initial discovery and development to large-scale commercial manufacturing. This makes them one of the few Indian companies with integrated New Chemical Entity (NCE) and New Biological Entity (NBE) capabilities.

Anthem specializes in fermentation-based Active Pharmaceutical Ingredients (APIs), including complex molecules like probiotics, enzymes, peptides, vitamin analogues, and biosimilars. Their global reach extends to over 44 countries, serving a diverse client base of more than 425, including both emerging biotech firms and large pharmaceutical companies worldwide. With two cGMP-compliant facilities in Karnataka and a third under construction, Anthem boasts substantial fermentation and custom synthesis capacities, positioning them as a leader in the Indian CRDMO space. Their commitment to sustainable manufacturing, with approximately 90% of energy sourced from renewables, also adds a compelling environmental, social, and governance (ESG) dimension.

IPO Details: What You Need to Know

The Anthem Biosciences IPO is a book-built issue with a substantial total size of ₹3,395 crores. Importantly, this entire issue is an Offer for Sale (OFS) of 5.96 crore equity shares by existing promoters and investors. This means the company itself will not receive any proceeds from the IPO; all funds will go to the selling shareholders.

Here are the key dates and figures:

• IPO Open Date: July 14, 2025 (Today!)

• IPO Close Date: July 16, 2025

• Face Value: ₹2 per share

• Price Band: ₹540 – ₹570 per share

• Employee Discount: ₹50 per share

• Minimum Lot Size: 26 shares

• Minimum Retail Investment: ₹14,040 (at the lower price band) / ₹14,820 (at the upper price band)

• Allotment Finalization: Expected July 17, 2025

• Refund Initiation: Expected July 18, 2025

• Demat Account Credit: Expected July 18, 2025

• Listing Date (BSE & NSE): Tentatively July 21, 2025

Financial Performance: A Solid Trajectory

Anthem Biosciences has demonstrated impressive financial growth. Their revenue from operations grew from ₹1,483.07 crore in FY24 to ₹1,930.29 crore in FY25, representing a robust 30.16% year-on-year increase. More significantly, their Profit After Tax (PAT) has also seen a healthy rise, from ₹367.31 crore in FY24 to ₹451.26 crore in FY25, a jump of 22.86%.

Key financial ratios also paint a positive picture:

• Return on Equity (ROE): 20.82% in FY25

• Return on Capital Employed (ROCE): 26.88% in FY25

• Debt-to-Equity Ratio: A very low 0.05, indicating a strong and conservative capital structure.

• PAT Margin: A healthy 23.38% in FY25

• EBITDA Margin: A robust 36.81% in FY25

These figures highlight the company's operational efficiency and strong profitability.

Subscription Status (As of July 14, 2025 - Day 1 End)

As of the end of Day 1 (July 14, 2025), the Anthem Biosciences IPO has seen a promising start:

• Overall Subscription: Early indications suggest a moderate to good subscription on Day 1. (As the IPO just opened today, exact real-time numbers will fluctuate throughout the day and subsequent days. Keep an eye on live subscription trackers.)

• Anchor Investor Response: Prior to the public issue, Anthem Biosciences successfully raised ₹1,016.02 crore from 60 institutional investors through its anchor book on July 11, allocating shares at ₹570 per share. This strong anchor investor interest from major mutual funds and institutional players is a positive sign.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) is a barometer of unofficial market sentiment and potential listing gains. As of July 14, 2025, the GMP for Anthem Biosciences IPO is reportedly strong, ranging from ₹93 to ₹100 per share.

Taking the upper end of the IPO price band (₹570) and a GMP of ₹97, the estimated listing price would be around ₹667. This indicates a significant potential listing gain of approximately 17.02%. While GMP offers an unofficial guide, it's essential to remember that it is volatile and subject to real market dynamics.

Investment Recommendation

Anthem Biosciences Limited operates in a highly attractive sector. The global CRDMO market is experiencing strong growth, driven by increasing R&D outsourcing by pharmaceutical companies, and India is a preferred destination due to its scientific talent and cost-effectiveness. The company's integrated capabilities, focus on advanced modalities, and established global client base are significant competitive advantages. Their robust financial performance, healthy margins, and low debt also speak volumes.

However, investors should also consider:

• 100% OFS: As a pure Offer for Sale, no fresh capital is coming into the company. While this doesn't inherently make it a bad issue, it means the company isn't directly benefiting from the IPO proceeds for its immediate growth plans, other than potentially improving promoter liquidity and valuation for future fundraises.

• Valuation: At a P/E of around 70.9x based on FY25 earnings (at the upper price band), the issue appears to be aggressively priced. However, this is common for high-growth, specialized pharmaceutical companies with strong future prospects. Peer comparisons can offer context, with some listed CRDMOs also trading at high multiples.

• Customer Concentration: A substantial portion of their revenue comes from a few key customers. While this indicates strong client relationships, it also presents a concentration risk.

• Regulatory Dependencies: The pharmaceutical industry is heavily regulated, and any delays or adverse changes in regulatory approvals could impact operations.

Our Recommendation:

Given Anthem Biosciences' strong market position, impressive financial track record, and the favorable outlook for the CRDMO sector, we recommend a "Subscribe" for this IPO. The company's niche expertise, global clientele, and consistent profitability make it an attractive long-term investment. While the valuation is on the higher side, its growth trajectory and the industry tailwinds justify a premium.

For investors with a medium to high-risk appetite and a long-term perspective, this IPO offers a compelling opportunity to participate in the growth story of a leading Indian CRDMO. The strong GMP further adds to the listing potential, but prudent investors should always prioritize the fundamental strength of the business.

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Investors should conduct their own thorough due diligence, understand all associated risks, and consult with a qualified financial advisor before making any investment decisions. The Information present here is taken from the other open web resources.The Grey Market Premium (GMP) is an unofficial and volatile indicator. Investing in IPOs carries inherent risks, and there is no guarantee of returns or listing gains.