Anthem Biosciences IPO: Strong Listing Day Performance Analysis
Anthem Biosciences made a powerful debut on July 21, 2025, with shares opening at ₹723 on NSE/BSE—around 26.85% above the IPO price of ₹570. By day’s close, it touched ₹730–₹732, yielding a 28.3% premium, translating into a valuation of approximately ₹41,000 crore ($4.75 billion)
Robust trading ensued: 4.10 crore shares changed hands, totalling a turnover of ₹2,290 crore, with a VWAP of ₹730.06.
Listing Day Highlights
| Metric | Data |
|---|---|
| IPO Price | ₹540–570/share |
| Listing Price | ₹723.05 (NSE), ₹723.10 (BSE) |
| Listing Premium | 26.85–26.86% |
| Day’s High | ₹747.00 |
| Day’s Close | ₹730.35–₹731.65 |
| Market Cap (Close) | ₹40,700–41,000 crore |
| Traded Volume | 313–410 lakh shares |
| Turnover | ₹2,290 crore |
| VWAP | ₹730.06 |
Investors saw solid early momentum, with both seasoned institutions and retail participants joining in
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Subscription & Grey Market Buzz
The IPO, exclusively offer-for-sale (OFS), saw phenomenal demand:
- Overall Subscription: 67.42×
- QIBs: 192.80×
- NIIs: 44.70×
- Retail: 5.98×
- Employee: 6.99×
Meanwhile, grey market premiums (GMPs) hovered between ₹144–₹170, suggesting 25–31% listing gains. The actual 26–27% premium aligned well with these expectations.
Business Snapshot: Who Is Anthem Biosciences?
Founded in 2006 and based in Bengaluru, Anthem Biosciences is a technology-driven CRDMO—Contract Research, Development and Manufacturing Organization—with two key revenue streams:
- CRDMO Services – (~81.7%)
- Specialty Ingredients – fermentation-based APIs like probiotics, enzymes (~18.3%).
The firm serves 550+ global customers across 44+ countries, with 196 active projects spanning discovery to commercial stages.
Financial Highlights Before IPO
Revenue (₹ crore):
- FY23: 1,056.9
- FY24: 1,419.4
- FY25: 1,844.6 | CAGR: ~32%.
Profit and Margins:
- Net Profit FY25: ₹451.3 cr (23% YoY growth)
- EBITDA Margin: 36.8% (top-tier)
- PAT Margin: ~23.4%.
Returns:
- ROE: ~20.8%
- ROCE: ~26.9%.
These metrics position Anthem among the industry’s most profitable and efficient players, outperforming peers like Syngene (EBITDA ~28.6%) and Sai Life (~23.9%).
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Industry & Competitive Landscape
India’s CRDMO space is booming, propelled by:
- Pharma giants outsourcing R&D and production
- Rising adoption of niche modalities—like ADCs and oligonucleotides
- Regulatory tailwinds and global supply diversification.
Anthem differentiates itself via:
- Integrated service offering from discovery to manufacturing
- Strong fermentation capacity (up to 182 kL)
- Deep tech stack across RNA, peptide, oligo platforms
- Long-term customer retention (average >11 years)
Post-Listing Valuation Snapshot
With the share price around ₹730, the market values Anthem at ~₹41,000 cr. The forward P/E of ~71× vs peers:
- Sai Life: ~169×
- Suven Life: ~106×
- Divi’s Labs: ~97×.
While premium, this valuation reflects the growth trajectory, profitability, market leadership, and sector outlook.
Experts Speak: Analyst Views
- Mehta Equities – HOLD for long-term investors; short-term ₹900, long-term ₹1,000+ target; suggest buying dips to ₹650–680.
- Swastika Investmart – Recommend booking partial profits, maintain rest; set stop-loss at ₹650.
- Aditya Birla Money – Rated SUBSCRIBE, citing strong leadership, growth path, capacity build-out.
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Risks & Watch-Outs
- Revenue concentration: Top 5 clients = ~71% of FY25 sales.
- Geographical concentration: All plants are in Karnataka; local/regulatory disruption risk.
- Regulatory risk: CRDMO operations must pass global inspections (USFDA, ANVISA, etc.).
- Valuation concerns: At ~71× P/E, future performance must justify premium.
- Pure OFS structure: No fresh capital raised; growth relies on existing cash flows and capacity investments.
Conclusion: Strong Debut with Long-Term Potential
Anthem Biosciences’ stellar debut underscores:
- Market trust, marked by 67× subscription and nearly ₹170 GMP
- Healthy listing premium of ~27%
- Enduring investor interest, with intraday highs near ₹747
While premium, the company’s deep tech capabilities, sector growth tailwind, and financial metrics make it a compelling long-term play—provided it navigates client concentration, valuation expectations, and regulatory scrutiny.
For long-term investors confident in India’s CRDMO opportunity and Anthem’s execution pathway, buying on dips and holding is a viable strategy. Short-term traders, however, may prefer a profit lock-in strategy with potential re-entry on price softening.
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FAQs (Frequently Asked Questions)
Q1. What listing premium did Anthem Biosciences achieve?
The stock listed at ₹723—about 26.85% premium, later touching a closing gain of ~28.3%, with intraday highs reaching ₹747.
Q2. How many times was the IPO subscribed?
The IPO saw a 67.42× overall subscription, led by QIBs at 192.80×, NIIs at 44.7×, and retail at nearly 6×.
Q3. Did the IPO raise fresh capital?
No—this was a pure OFS of 5.96 crore shares worth ₹3,395 cr. Proceeds are going to sellers; the company isn’t raising new funds.
Q4. What are notable risks for investors?
Client concentration, regulatory exposure, geographic risk, and high valuation (P/E ~71×) are key concerns to monitor.
Q5. Should investors buy now or wait for dip?
Analysts suggest a staggered approach: consider booking gains above ₹900 for short-term investors; long-term investors might choose buy-on-dip around ₹650–680.
