The initial public offering (IPO) of Anthem Biosciences Ltd will close for subscription on Wednesday, July 16.
The Rs 3,395 crore IPO has attracted strong interest from investors since it opened on July 14, especially in the high net-worth individual (HNI) and retail segments.
This IPO is entirely an offer for sale (OFS) of 5.96 crore equity shares by existing shareholders. The company itself will not receive any money from this offer. The price band has been set at Rs 570 per share.
SUBSCRIPTION STATUS
As of the end of Day 2, the IPO was subscribed 3.48 times. The retail investors’ portion was booked 2.21 times, while the non-institutional investors’ (NII) quota saw a strong response with 10.26 times subscription.
However, the qualified institutional buyers (QIBs) have so far bid for only 0.62 times the reserved portion.
The final subscription figures will be available once the bidding closes at the end of trading hours today.
GREY MARKET PREMIUM
The grey market premium (GMP) for Anthem Biosciences has been rising steadily.
As of July 16 (7:31 am), the latest GMP stood at Rs 156. With the upper price band of Rs 570, the estimated listing price is expected to be around Rs 726. This suggests a likely listing gain of 27.37%.
Several brokerages have recommended subscribing to the IPO, citing the company’s position in a high-growth segment and its strong financial track record.
SBI Securities said Anthem is well-positioned in the growing contract research, development, and manufacturing (CRDMO) industry. The brokerage pointed out the company’s expansion plans, consistent profitability, and strong business pipeline. It called the IPO “fairly priced” when compared with peers and advised investors to subscribe at the cut-off price for long-term gains.
Anand Rathi also gave a ‘Subscribe’ rating. It highlighted Anthem’s focus on specialty ingredients and peptides, backed by strong client relationships and a fee-for-service model that helps build long-term business. While the IPO’s valuation appears high with a price-to-earnings (PE) ratio of 70.6 based on annualised FY25 earnings, the report said the business fundamentals justify the price.
Rajan Shinde, research analyst at Mehta Equities, said the IPO offers investors a good chance to invest in a growing CRDMO space. He said Anthem has shown strong execution with more than 8,000 projects completed and 675 clients served. The company has also adopted advanced technologies and built a strong presence across both small and large molecule platforms.
Shinde acknowledged that while the PE ratio of 70x may seem expensive, it is still lower than the industry average of 80x–90x. Given the company’s consistent revenue growth and improving profit margins, the IPO still offers a fair entry point for long-term investors, he said.
Anthem Biosciences reported a 34.3% jump in revenue in FY24 and followed that with another 30% increase in FY25. Net profit rose 22.9% in FY25 after a 4.6% dip in the previous year.
The company has also been able to maintain margins and continues to build a strong pipeline of over 240 active projects. Its focus on innovation, green chemistry, and complex drug development gives it an edge in a competitive sector.
Bidding for the IPO will close today, July 16. Share allotment is expected on July 17. The shares are likely to be listed on the BSE and NSE on July 21.
Investors interested in subscribing should do so before market hours end today.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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