Anthem Biosciences IPO: Decoding the Opportunity
The Indian primary market is buzzing with activity, and a prominent name making headlines is Anthem Biosciences Ltd., preparing for its Initial Public Offering (IPO). This comprehensive guide delves into every aspect of this upcoming offering, providing you with the insights needed to make informed investment decisions.
Anthem Biosciences: A Deep Dive into the Company
Established in 2006, Anthem Biosciences Limited has carved a niche as an innovation-driven and technology-focused Contract Research, Development, and Manufacturing Organization (CRDMO). Their integrated operations span the entire drug lifecycle – from discovery and development to manufacturing processes.
They cater to a diverse global clientele, including innovative biotech firms and established pharmaceutical companies. A key area of their expertise lies in manufacturing specialized fermentation-based APIs (Active Pharmaceutical Ingredients), such as probiotics, enzymes, peptides, nutritional actives, vitamin analogues, and biosimilars.
As of late 2024, Anthem Biosciences was actively involved in manufacturing APIs and intermediates for ten commercial molecules, all originating from their discovery phase. Their impressive portfolio includes:
- 170 discovery projects (leading to 284 synthesized molecules).
- 132 early-phase projects.
- 16 late-phase projects (encompassing 10 late-phase molecules).
- 13 commercial manufacturing projects (for 10 commercialized molecules).
With a customer base of over 425 to 550 across more than 44 countries (including the U.S., Europe, and Japan) and a team of 600 employees comprising diverse scientific and engineering talent, Anthem Biosciences demonstrates a strong global footprint and robust human capital. Their intellectual property includes one patent in India, seven overseas, and 24 pending global patent applications.
Key Competitive Advantages:
- Integrated Service Model: Offering end-to-end solutions across drug discovery, development, and manufacturing for small molecules and biologics.
- Innovation-Centric Approach: Delivering advanced technological solutions across various modalities and manufacturing practices.
- Niche Business Model: Specializing in catering to small pharmaceutical and biotech companies, guiding them from discovery to commercialization.
- Strong Customer Relationships: Building long-standing alliances with a diversified and loyal client base.
- Experienced Leadership: A professional management team complemented by a highly qualified scientific workforce.
Understanding the Initial Public Offering (IPO)
The Anthem Biosciences IPO is a substantial offer, entirely structured as an Offer for Sale (OFS). This means the company will not directly receive any proceeds; instead, the funds will go to the existing selling shareholders.
Key Offer Details:
| Detail | Information |
|---|---|
| IPO Type | Bookbuilding IPO (Mainboard) |
| Issue Size | 5,95,61,404 shares (aggregating up to ₹3,395.00 Cr) |
| Offer Type | Offer For Sale (OFS) |
| Face Value | ₹2 per share |
| Price Range | ₹540 to ₹570 per share |
| Listing Venue | BSE, NSE |
| Employee Discount | ₹50.00 per share |
IPO Journey: From Opening to Listing (Tentative Schedule)
Here's a tentative timeline for the Anthem Biosciences IPO, marking important dates for prospective investors:
Jul 14, 2025
Jul 17, 2025
Jul 18, 2025
Jul 21, 2025
| Event | Date |
|---|---|
| IPO Open Date | Mon, July 14, 2025 |
| IPO Close Date | Wed, July 16, 2025 |
| Tentative Allotment Finalization | Thu, July 17, 2025 |
| Initiation of Refunds | Fri, July 18, 2025 |
| Credit of Shares to Demat Account | Fri, July 18, 2025 |
| Tentative Listing Date | Mon, July 21, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 16, 2025 |
Understanding the Lot Size and Investment
Investors can bid for a minimum of 26 shares and in multiples thereof. The investment amount varies based on the investor category, as detailed below:
| Application Category | Lots (Min/Max) | Shares (Min/Max) | Amount (Min/Max) |
|---|---|---|---|
| Retail Individual Investor (RII) | 1 - 13 lots | 26 - 338 shares | ₹14,820 - ₹1,92,660 |
| Small HNI (sNII) | 14 - 67 lots | 364 - 1,742 shares | ₹2,07,480 - ₹9,92,940 |
| Big HNI (bNII) | 68 lots and above | 1,768 shares and above | ₹10,07,760 and above |
Investor Category Allocations
The IPO shares are reserved for different investor categories as per regulatory guidelines:
| Investor Category | Shares Offered |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50.00% of the Net Issue |
| Retail Individual Investors (RII) | Not less than 35.00% of the Net Issue |
| Non-Institutional Investors (NII) | Not less than 15.00% of the Net Issue |
Application Limits and Bidding Rules
Specific bidding rules apply to different investor categories:
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Retail Individual Investor (RII) | Up to ₹2 Lakhs | Yes |
| Small NII (sNII) | ₹2 Lakhs to ₹10 Lakhs | No |
| Big NII (bNII) | More than ₹10 Lakhs (NII Reservation Portion) | No |
| Employee | Yes (with discount for bids up to ₹2 lakhs in certain cases) | Yes for Employee and RII/NII |
Anchor Investor Insights
Prior to the main subscription, Anthem Biosciences garnered significant interest from anchor investors, raising ₹1,016.02 crore. The anchor bid date was July 11, 2025.
| Detail | Information |
|---|---|
| Anchor Bid Date | July 11, 2025 |
| Shares Offered to Anchors | 1,78,24,999 shares |
| Anchor Portion Size | ₹1,016.02 crore |
| 50% Anchor Lock-in End Date (30 Days) | August 16, 2025 |
| Remaining Anchor Lock-in End Date (90 Days) | October 15, 2025 |
Financial Health: A Snapshot
Anthem Biosciences has demonstrated impressive financial growth over the recent fiscal years.
| Period Ended (March 31) | Assets (₹ Cr) | Revenue (₹ Cr) | Profit After Tax (PAT) (₹ Cr) | EBITDA (₹ Cr) | Net Worth (₹ Cr) | Total Borrowing (₹ Cr) |
|---|---|---|---|---|---|---|
| 2025 | 2,807.58 | 1,930.29 | 451.26 | 683.78 | 2,409.86 | 108.95 |
| 2024 | 2,398.11 | 1,483.07 | 367.31 | 519.96 | 1,924.66 | 232.53 |
| 2023 | 2,014.46 | 1,133.99 | 385.19 | 446.05 | 1,740.67 | 125.06 |
From FY2024 to FY2025, the company's revenue increased by a significant 30%, while Profit After Tax (PAT) saw a healthy rise of 23%. It's worth noting that the higher net profit for FY2023 included an exceptional income adjustment.
Performance Metrics: A Closer Look (as of March 31, 2025)
Here are some key performance indicators (KPIs) to evaluate the company's efficiency and financial health:
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 20.82% |
| Return on Capital Employed (ROCE) | 26.88% |
| Debt/Equity Ratio | 0.05 |
| Return on Net Worth (RoNW) | 20.82% |
| PAT Margin | 23.38% |
| EBITDA Margin | 36.81% |
| Price to Book Value | 13.23 |
Promoter's Stake: Pre & Post Issue
The promoters of Anthem Biosciences Ltd. include Ajay Bhardwaj, Ganesh Sambasivam, K Ravindra Chandrappa, and Ishaan Bhardwaj. Their shareholding pattern reflects the nature of this Offer for Sale:
| Share Holding Stage | Percentage (%) |
|---|---|
| Pre-Issue Share Holding | 76.87% |
| Post-Issue Share Holding | 74.68% |
The slight reduction in promoter holding post-issue is a direct result of the Offer for Sale structure.
Purpose of the Public Offering
As this IPO is an Offer for Sale (OFS), Anthem Biosciences will not directly receive any funds from the issue. The entire proceeds, after deducting offer-related expenses and relevant taxes, will be distributed to the existing selling shareholders. This indicates that the primary objective of the IPO is to provide an exit opportunity or liquidity to some of the current investors and promoters.
SWOT Analysis: Strategic Overview
A comprehensive look at Anthem Biosciences' strategic position reveals its strengths, potential areas for improvement, opportunities for growth, and external threats.
- Strengths:
- Strong position as an innovation-driven, technology-focused CRDMO.
- Integrated "one-stop shop" service model from discovery to manufacturing.
- Diverse global customer base with long-standing relationships.
- Robust pipeline of projects across various drug development phases.
- Experienced leadership and highly qualified scientific talent pool.
- Significant revenue and PAT growth in recent fiscal years.
- Solid intellectual property portfolio with multiple patents.
- Weaknesses:
- Dependence on R&D expenditure by pharmaceutical and biotech companies, which can be cyclical.
- High capital intensity inherent in the CRDMO business model.
- Potential for intense competition in niche API manufacturing.
- Opportunities:
- Growing global demand for outsourced drug discovery, development, and manufacturing services.
- Expansion into new therapeutic areas or advanced modalities.
- Leveraging patented processes for new product development.
- Increased focus on biosimilars and specialized fermentation-based products.
- Threats:
- Evolving regulatory landscape in the pharmaceutical and biotechnology sectors.
- Technological disruptions or rapid advancements by competitors.
- Economic downturns impacting client R&D budgets.
- Global supply chain disruptions affecting raw material availability.
Essential Contacts and Key Facilitators
Issue Registrar Details:
Kfin Technologies Limited is the official registrar for the Anthem Biosciences IPO, responsible for managing the allocation and refunds.
Contact:
Phone: 04067162222, 04079611000
Email: anthem.ipo@kfintech.com
Lead Managers: Driving the Offer
The IPO is being steered by a consortium of reputable lead managers:
- Jm Financial Limited
- Citigroup Global Markets India Private Limited
- J.P. Morgan India Private Limited
- Nomura Financial Advisory And Securities (India) Pvt Ltd
Frequently Asked Questions (FAQs) about the IPO
What is the Anthem Biosciences IPO about?
Anthem Biosciences IPO is a main-board IPO consisting of 5,95,61,404 equity shares, aggregating up to ₹3,395.00 Crores, offered at a price band of ₹540 to ₹570 per share. The minimum order quantity is 26.
When does the Anthem Biosciences IPO open and close?
The IPO opens for subscription on July 14, 2025, and closes on July 16, 2025.
What is the lot size for Anthem Biosciences IPO?
The minimum lot size for the Anthem Biosciences IPO is 26 shares, requiring a minimum investment of ₹14,820.
How can I apply for the Anthem Biosciences IPO?
You can apply online using either UPI or ASBA. ASBA applications are available through your bank's net banking portal, while UPI applications are offered by many stockbrokers.
When is the allotment for Anthem Biosciences IPO expected?
The Basis of Allotment for Anthem Biosciences IPO is tentatively scheduled for Thursday, July 17, 2025. Allotted shares are expected to be credited to your demat account by Friday, July 18, 2025.
What is the tentative listing date for Anthem Biosciences IPO?
The tentative listing date for Anthem Biosciences IPO on BSE and NSE is Monday, July 21, 2025.
Overall Recommendation Summary
Market analysts widely view Anthem Biosciences as a strong player in the innovation-driven CRDMO segment. While the issue may appear aggressively priced based on certain metrics, its robust growth trajectory in top-line and bottom-line, combined with its niche position and integrated business model, presents a compelling long-term investment proposition. Investors seeking to participate in the high-growth pharmaceutical and biotech services sector may consider parking funds in this offering for a long-term horizon.
It is always advisable for investors to conduct their own due diligence and consult with a financial advisor before making any investment decisions.
Remember to check the latest subscription status and Grey Market Premium (GMP) before applying, as these can provide additional insights into market sentiment.