The IPO of Bengaluru-based pharma company Anthem Biosciences is receiving a tremendous response. Within the first day of its opening, 77% of the issue was subscribed. Notably, the entire issue is coming under the Offer for Sale (OFS) route, meaning no new shares are being issued. Existing shareholders of the company are selling their stake.
Grey Market Premium (GMP) Raises Expectations
The GMP, or Grey Market Premium, has become a topic of discussion since the IPO opened. Initially, the premium was hovering around 18% above the issue price, but it has now increased to 20.35%. This signifies a positive sentiment in the market regarding the company's shares, with investors willing to buy them at a higher price.
IPO Size and Subscription Data
Anthem Biosciences' issue size is 4.4 million shares, while bids have been received for 33.83 million shares so far. The Non-Institutional Investors (NII) category saw the highest response, with bids reaching 1166%. Meanwhile, the retail segment showed less interest, with only 0.61% subscribed. The QIB (Qualified Institutional Buyer) category witnessed a 37% subscription.
Price Band and Lot Size
The company has set a price band of ₹540 to ₹570 per share for the IPO. Investors must apply for a minimum of one lot, which consists of 26 shares. This translates to a minimum investment of approximately ₹14,820. The listing will occur on both the NSE and BSE exchanges.
Company Background and Business Model
Anthem Biosciences was established in 2006. It operates in the CRDMO category of the pharmaceutical sector, meaning Contract Research, Development, and Manufacturing Organization. The company is actively involved in drug discovery, development, and manufacturing. In India, there are few companies that work simultaneously on small and large molecules, and Anthem is one of them.
Strong Performance in FY25
On the financial front, the company demonstrated robust performance in fiscal year 2025. Its EBITDA margin was 36.8% and Return on Net Worth (RoNW) was 20.8%. The company's total net worth stood at ₹2410 crore as of March 2025. These figures reflect the stability of the company's income and profitability.
Global Regulatory Approvals and Expansion Plans
The company's manufacturing units are designed according to international standards. They have received approvals from global regulatory bodies such as USFDA, ANVISA, TGA, and PMDA. The company is planning to expand its fermentation and synthesis capacity to meet the growing demand for biologics and specialty ingredients.
Valuation and Comparison with Other Pharma Companies
Based on FY25 earnings, the company's P/E ratio is at 71x. In comparison, Syngene has a P/E of 51 and Divi's Labs is around 83. This indicates that Anthem Biosciences' valuation falls among the companies that are already listed and have a b presence.
Market Confidence Growing, Analysts Also Bullish
Several brokerage firms, such as Anand Rathi and Canara Bank Securities, have given positive opinions on this IPO. Both institutions have recommended "Subscribing" to it. According to them, the company's business model, technology, and profit growth make it a b contender.
Last Day to Apply
The last day for the IPO is July 16th, meaning investors who haven't applied yet have today and tomorrow to do so. The company's track record, global client base, and the rapid GMP increase are fueling excitement in the market.
