In the dynamic landscape of India’s pharmaceutical and biotechnology sectors, Anthem Biosciences Limited has emerged as a powerhouse, offering end-to-end solutions in drug discovery, development, and manufacturing. As a technology-driven Contract Research, Development, and Manufacturing Organization (CRDMO), Anthem Biosciences is set to make its mark on the Indian stock market with its Initial Public Offering (IPO) listing on July 21, 2025. With a stellar subscription rate of 63.86 times and a grey market premium (GMP) signaling robust listing gains, this IPO has captured the attention of investors worldwide. Are you ready to dive into the details of this blockbuster IPO and evaluate its investment potential? This 3000-word guide explores Anthem Biosciences’ background, financials, market dynamics, and more to help you make an informed decision.
What is an IPO and Why Anthem Biosciences’ IPO Matters
Understanding an IPO
An Initial Public Offering (IPO) is the process by which a private company goes public by offering its shares to investors, raising capital to fuel growth, repay debts, or allow existing shareholders to exit. For investors, IPOs present an opportunity to invest in promising companies early, but they also carry risks due to market volatility and uncertainties surrounding new listings.
Overview of Anthem Biosciences IPO
Anthem Biosciences’ IPO, valued at ₹3,395.79 crores, is entirely an Offer for Sale (OFS) of 5.96 crore equity shares with a face value of ₹2 each. The IPO opened for subscription from July 14 to July 16, 2025, with a price band of ₹540 to ₹570 per share. The shares were allotted on July 17, 2025, and listed on the BSE and NSE on July 21, 2025, at ₹723.05 (NSE) and ₹723.10 (BSE), reflecting a premium of approximately 26.85% over the issue price. The IPO’s objectives include:
- Enabling promoters and shareholders to monetize their stakes.
- Enhancing Anthem’s visibility and brand value in the global pharmaceutical market.
The IPO’s overwhelming subscription, particularly from Qualified Institutional Buyers (QIBs) at 182.65 times, underscores strong investor confidence. With a market capitalization of ₹31,867 crores at the upper price band, Anthem Biosciences is poised to be a significant player in India’s biotech landscape.
Anthem Biosciences: A Deep Dive into the Company’s Background
Founding and Evolution
Incorporated in 2006 in Bengaluru, Karnataka, Anthem Biosciences has grown into one of India’s leading CRDMOs, offering integrated services across the pharmaceutical value chain. Founded by Ajay Bhardwaj, who serves as Chairman, Managing Director, and CEO, the company has expanded its footprint to serve over 675 clients across 44 countries, including emerging biotech startups and global pharmaceutical giants.
Mission and Vision
Anthem Biosciences is driven by a mission to deliver innovative, technology-driven solutions that accelerate drug discovery, development, and manufacturing while maintaining a commitment to sustainability through green chemistry. Its vision is to be a global leader in the CRDMO space, leveraging its expertise in both small molecules and biologics to address the evolving needs of the pharmaceutical industry.
Key Products and Services
Anthem Biosciences specializes in:
- Drug Discovery and Development: Services include target identification, lead optimization, and preclinical studies for New Chemical Entities (NCEs) and New Biological Entities (NBEs).
- Manufacturing: Production of complex fermentation-based Active Pharmaceutical Ingredients (APIs), including probiotics, enzymes, peptides, nutritional actives, vitamin analogues, and biosimilars.
- End-to-End CRDMO Services: From early-stage research to commercial-scale manufacturing, catering to a diverse client base.
- Specialized Offerings: Expertise in antibody-drug conjugates (ADCs), oligonucleotides, and RNA therapeutics, positioning Anthem as a niche player.
Unique Selling Propositions (USPs)
Anthem Biosciences differentiates itself through:
- Integrated CRDMO Platform: One of the few Indian companies offering end-to-end services across the drug lifecycle, from discovery to manufacturing.
- Largest Fermentation Capacity: India’s largest fermentation capacity at 182 kL, enabling high-volume production of specialized APIs.
- Global Client Base: Over 675 clients across 44 countries, including partnerships with major pharmaceutical companies.
- Innovation and Patents: Holds one patent in India, seven overseas, and has 24 pending global patent applications as of September 2024.
- Sustainability Focus: Leadership in green chemistry aligns with global ESG trends, enhancing its appeal to socially conscious investors.
Financial Performance: A Snapshot of Anthem Biosciences’ Fiscal Health
Revenue and Profit Growth
Anthem Biosciences has demonstrated strong financial performance, with consistent revenue and profit growth:
- FY 2025: Revenue of ₹1,930.29 crores, a 30% year-on-year increase from ₹1,483.07 crores in FY 2024. Net profit rose by 23% to ₹451.26 crores from ₹367.31 crores.
- FY 2024: Revenue grew by 34.3% from ₹1,134 crores in FY 2023, though net profit dipped by 4.6% due to increased operational costs.
- EBITDA Margin: Maintained at 36.8% in FY 2025, reflecting operational efficiency.
- Return on Capital Employed (ROCE): Approximately 27% in FY 2025, indicating strong capital utilization.
Key Financial Metrics
- Earnings Per Share (EPS): Based on FY 2025 earnings, the post-issue EPS supports a price-to-earnings (P/E) ratio of 70.6x, which is lower than peers like Sai Life Sciences (92.18x) and Divi’s Laboratories (83.22x).
- Market Capitalization: ₹31,867 crores at the upper price band, reflecting strong market confidence.
- Return on Net Worth (RoNW): 20.8% in FY 2025, showcasing efficient use of equity capital.
Revenue, Profits, and Assets
GNG Electronics has demonstrated consistent growth in its financial figures leading up to the IPO:
| Fiscal Year | Revenue (₹ Crores) | Expense (₹ Crores) | Profit After Tax (₹ Crores) | Total Assets (₹ Crores) |
|---|---|---|---|---|
| 2022 | 521.92 | 497.67 | 21.77 | 194.71 |
| 2023 | 662.79 | 627.37 | 32.43 | 285.50 |
| 2024 | 1,143.80 | 1,086.47 | 52.31 | 585.82 |
| 2025 | 1,420.37 | 1,342.02 | 69.03 | 719.46 |
Key Financial Metrics (FY2025)
- ROE: 30.40%
- ROCE: 17.31%
- EBITDA Margin: 8.94%
- PAT Margin: 4.89%
- Debt/Equity Ratio: 1.92
- EPS: ₹7.09 (Basic)
- Return on Net Worth: 30.40%
- Net Asset Value: ₹23.31
Financial Highlights
- Steadily rising revenue with a CAGR reflecting robust market demand and operational scale.
- Improving profit after tax despite consistent investment in infrastructure and global expansion.
- Prudent cost management visible in controlled expense-to-revenue ratios.
Financial Challenges
- High Working Capital Needs: Business model is working-capital intensive due to large inventory and procurement cycles.
- Debt Load: Moderate gearing ratio (1.92x) indicating sizable borrowings, a portion of which will be retired through IPO proceeds.
- Market Dependency: Over 75% of operating revenue comes from laptop refurbishment—posing a concentration risk if this segment slows down or undergoes tech disruption.
Market Analysis: India’s Electronics Refurbishment Boom
Industry & Market Trends
- Refurbished PC Market Growth: Globally, the refurbished PC market is set to rise from US$14.4billion in 2023 to US$38.3billion by 2028—a staggering 22% CAGR.
- India’s Growth Engine: The Indian refurbished PC segment is on track to reach US$3.3billion by FY29, growing at a 33% CAGR. The organized market share has jumped from 5% to 11% in five years and is projected to hit 32% by FY29.
Financial Challenges
Despite its strong financials, Anthem Biosciences faces challenges:
- High P/E Valuation: A P/E ratio of 70.6x is relatively high, though justified by growth prospects and industry comparisons.
- Dependence on Global Markets: With clients in 44 countries, the company is exposed to geopolitical and currency risks.
- No Fresh Issue Proceeds: As the IPO is entirely an OFS, Anthem will not receive new capital for expansion, potentially limiting growth initiatives.
Strategic Outlook
Anthem Biosciences plans to increase its fermentation and synthesis capacity by 50% over the next 12–18 months, which could further boost revenue and margins. The company’s focus on high-margin biologics and its diversified client base mitigate some of the risks associated with market concentration.
Market Analysis: The CRDMO Industry Landscape
Industry Trends
The global CRDMO market is experiencing rapid growth, driven by increasing outsourcing of drug development and manufacturing by pharmaceutical companies. Key trends include:
- Market Size and Growth: The Indian CRDMO industry, valued at $7.3 billion in 2025, is expected to double to $14.6 billion by 2028, driven by global shifts away from Chinese suppliers and India’s “Make-in-India” initiative.
- Demand for Biologics: Growing demand for biologics, such as biosimilars and RNA therapeutics, aligns with Anthem’s expertise in fermentation-based APIs.
- Sustainability Focus: Green chemistry and sustainable manufacturing practices are gaining traction, benefiting companies like Anthem with leadership in this area.
Competitive Landscape
Anthem Biosciences competes with listed peers like:
- Syngene International Ltd: P/E of 51.54, with a focus on contract research.
- Sai Life Sciences Ltd: P/E of 92.18, specializing in small molecules.
- Cohance Lifesciences Ltd: P/E of 97.29, with a focus on APIs and intermediates.
- Divi’s Laboratories Ltd: P/E of 83.22, a leader in API manufacturing.
Anthem’s integrated CRDMO platform and largest fermentation capacity give it a competitive edge, particularly in biologics and niche APIs. Its client base of over 675 partners, including biotech startups acquired by large pharma, underscores its long-term value creation.
Growth Opportunities
Anthem Biosciences is well-positioned to capitalize on:
- Global Supply Chain Shifts: Increasing reliance on India as a CRDMO hub due to geopolitical tensions with China.
- Expansion Plans: A 50% increase in fermentation and synthesis capacity will enhance scalability.
- Diverse Client Base: Serving both emerging biotechs and established pharma giants ensures revenue stability.
IPO Pricing and Allotment Details
Pricing Structure
The Anthem Biosciences IPO was priced at ₹540 to ₹570 per share, with a lot size of 26 shares. The issue comprised:
- Offer for Sale (OFS): 5.96 crore shares aggregating to ₹3,395.79 crores.
- Market Capitalization: ₹31,867 crores at the upper price band.
Allotment Breakdown
The IPO was allocated as follows:
- Retail Individual Investors (RII): 35% (1.54 crore shares), subscribed 5.64 times.
- Qualified Institutional Buyers (QIB): 50% (2.20 crore shares), subscribed 182.65 times.
- Non-Institutional Investors (NII): 15% (0.66 crore shares), subscribed 42.35 times.
- Employee Reservation: 1,58,654 shares offered at a ₹50 discount, subscribed 6.99 times.
Investment Requirements
- Retail Investors: Minimum investment of ₹14,040 (26 shares) and up to 13 lots (338 shares) for ₹192,660.
- Small HNI (sNII): Minimum of 14 lots (364 shares) for ₹207,480.
- Big HNI (bNII): Minimum of 68 lots (1,768 shares) for ₹1,007,760.
Allotment and Listing Timeline
- Anchor Bid Date: July 11, 2025, raising ₹1,016 crore from investors like Abu Dhabi Investment Authority and HDFC Mutual Fund.
- Allotment Finalization: July 17, 2025.
- Refund Date: July 18, 2025.
- Listing Date: July 21, 2025, on BSE and NSE.
Grey Market Premium (GMP)
As of July 21, 2025, the GMP ranged from ₹138 to ₹179, indicating an estimated listing price of ₹708 to ₹749, or a 24.21% to 31.40% premium over the issue price. The listing at ₹723.05 (NSE) and ₹723.10 (BSE) aligned closely with GMP expectations, reflecting strong investor sentiment.
Investment Potential: Risks and Rewards
Potential Rewards
Investing in Anthem Biosciences offers several advantages:
- Strong Financial Growth: 30% revenue growth and 23% PAT growth in FY 2025, with EBITDA margins of 36.8%.
- Market Leadership: India’s largest fermentation capacity and a diverse client base across 44 countries.
- Industry Tailwinds: Growing demand for CRDMO services and India’s rising role as a global hub.
- Robust Listing Performance: A 26.85% listing premium reflects strong market confidence.
- Long-Term Potential: Expansion plans and a focus on biologics position Anthem for sustained growth.
Risks to Consider
Investors should be cautious of:
- High Valuation: A P/E ratio of 70.6x is higher than some peers, though justified by growth prospects.
- No Fresh Capital: The OFS structure means no new funds for growth, potentially limiting expansion.
- Global Market Risks: Exposure to geopolitical and currency fluctuations due to international operations.
- Margin Sustainability: Maintaining high EBITDA margins depends on cost control and client retention.
Return on Investment (ROI) Outlook
The IPO listed at a 26.85% premium, delivering strong short-term gains for allottees. For long-term investors, Anthem’s growth in the CRDMO sector, backed by a 30% revenue CAGR and expansion plans, suggests potential for sustained returns. Analysts recommend holding shares for long-term growth, with a potential listing price of ₹735–740 based on GMP trends.
Conclusion: Should You Invest in Anthem Biosciences?
Anthem Biosciences’ IPO has made a stellar debut, listing at a 26.85% premium on July 21, 2025, driven by strong investor demand and a robust GMP. With its leadership in the CRDMO space, largest fermentation capacity in India, and a diversified client base, Anthem is well-positioned to capitalize on the growing demand for biologics and sustainable pharmaceutical solutions. While the high P/E ratio and lack of fresh capital raise concerns, the company’s financial growth, industry tailwinds, and expansion plans make it an attractive long-term investment.
Recommendation: Investors who secured allotments should consider holding for long-term gains, given Anthem’s strong fundamentals and market positioning. Those who missed the IPO can wait for post-listing price stabilization before entering, as suggested by analysts. Always consult a financial advisor, review the Red Herring Prospectus (RHP) on the SEBI website, and check allotment status on KFin Technologies or BSE.
Disclaimer: Investing in IPOs involves risks. This article is for informational purposes only and does not constitute financial advice. Consult a certified financial advisor before making investment decisions.
