Anthem Biosciences IPO: Issue booked nearly 2x on day 2 so far as GMP surges

The initial public offering (IPO) of Anthem Biosciences managed to sail-through during the second day bidding process, thanks a strong buying interest from HNI and retail bidders. The issue, which kicked off on Monday, July 14, was overall subscribed 73 per cent on first day of the bidding.

Anthem Biosciences has announced its Initial Public Offering (IPO) with an offer price between Rs 540 and Rs 570 per share. Investors can apply for a minimum of 26 shares with further applications in multiples of 26. The IPO, set to raise Rs 3,395 crore, involves the sale of up to 5,95,61,404 equity shares by promoters and existing shareholders.

According to the data, the investors made bids for 8,60,39,122 equity shares, or 1,95 times, compared to the 4,40,70,682 equity shares offered for the subscription by 1.00 pm on Tuesday, July 15, 2025. The three-day bidding for the issue shall conclude on Wednesday, July 16.

The allocation for retail investors was subscribed 1,38 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 5.37 times. Allocation of employees was booked 1,72 times. However, the quota set aside for qualified institutional bidders (QIBs) was subscribed 40 per cent as of the same time.

Shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on July 21. The IPO has seen a positive response in the grey market, with the premium rising to Rs 120-125 per share, suggesting potential listing gains of 22-23% despite market volatility.

Bengaluru-based Anthem Biosciences, established in 2006, operates as a contract research, development, and manufacturing organisation (CRDMO), covering comprehensive drug discovery, development, and manufacturing processes. The company boasts a net profit of Rs 451.26 crore for the fiscal year ending March 31, 2025, and a revenue of Rs 1,930.29 crore, showing a strong financial performance.

The IPO has been positively received by analysts, who highlight the company's strong financials, experienced management, and a healthy balance sheet with negligible debt. However, concerns include reliance on major clients and the Offer for Sale (OFS) nature of the IPO. Anthem Biosciences also secured Rs 1,016.02 crore from 60 anchor investors prior to the IPO.

The company has been consistently investing in its manufacturing capacities and capabilities (ongoing brownfield expansion at Unit 2 and greenfield expansion at Unit 3), it is present in multiple modalities and has superior manufacturing expertise, which makes it a vendor of choice for the innovators, said B&K Securities.

"It trades at PE of 71 times and EV/Ebitda of 47 times, which we feel is fairly priced leaving limited room for upside in the near-term. Most valued CDMO company Divi’s trades at 82 times FY25 EPS and 53 times FY27E EPS. We recommend Subscribe for long-term," it added.

The issue is managed by JM Financial, Citigroup Global Markets India, JP Morgan India, and Nomura Financial Advisory & Securities (India), with Kfin Technologies as the registrar. Employee shares worth Rs 8.25 crore have been reserved, offering a Rs 50 discount. Allocation includes 50% for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.

Anthem Biosciences is strategically positioned for growth in the rapidly expanding global and Indian CRDMO markets, driven by its integrated drug discovery, development, and manufacturing capabilities, advanced technologies, with over 80 per cent of revenue coming from exports, said SMC Global Securities.

"The upcoming Unit 4 facility and expertise in high-complexity molecules further enhance its outlook. However, risks such as high customer concentration which is around 71 per cent of revenue, dependence on fee-for-service contracts and overseas supplier reliance pose challenges," it added giving this IPO a 2-star rating.

With a market capitalisation of Rs 31,867.39 crore, Anthem Biosciences is well-positioned in the market, attracting investor interest. The company’s robust growth and strategic objectives underpin the IPO's aim to fund new projects and reduce debt.

The shares are scheduled for listing on July 21. Investors and market participants eagerly await the debut, eyeing the projected listing gains amidst the current market conditions.