Anthem Biosciences is preparing to launch its highly anticipated initial public offering, which has generated considerable buzz among retail and institutional investors. The Bengaluru-based biopharmaceutical company specializes in contract research and manufacturing services, catering to global pharmaceutical and biotech firms.
The IPO will consist of a fresh issue of shares along with an offer-for-sale by existing stakeholders. According to the draft red herring prospectus filed with market regulators, the objective of the fresh issue is to support capacity expansion, repay debt, and fund general corporate purposes. The offer-for-sale component will provide a partial exit to promoters and early investors.
The company has announced a price band expected to range between Rs 500 and Rs 540 per share, with the final pricing to be determined based on investor demand during the book-building process. The issue is likely to open for public subscription within the next two weeks. The exact dates for the opening and closing of the IPO will be announced shortly, along with details on anchor investor participation.
Market observers are closely tracking the grey market premium (GMP) for Anthem Biosciences shares. The GMP has reportedly been ranging between Rs 100 and Rs 130, indicating strong investor sentiment and expectations of healthy listing gains. However, experts advise caution, stating that grey market trends are unofficial and may not always reflect the actual market response.
The lot size for the IPO is expected to be in the range of 27 to 30 shares per lot, with a minimum application value of approximately Rs 15,000 for retail investors. The shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) after the allotment and refund processes are completed.
Anthem Biosciences has posted robust financial performance over recent years, with consistent growth in revenue and profitability. For the financial year ending March 2024, the company reported a revenue of over Rs 1,100 crores and a net profit exceeding Rs 250 crores. The company’s strong performance has positioned it as one of the leading players in the contract development and manufacturing organization (CDMO) space in India.
The biopharmaceutical sector in India has witnessed strong growth, driven by increasing demand for outsourced research and production services. Anthem Biosciences has built a diversified client base across the United States, Europe, and Asia, which gives it an advantage in scaling operations and expanding market share.
Analysts believe that the IPO is well-timed, considering the positive investor sentiment toward healthcare and pharmaceutical stocks. However, they also recommend evaluating company fundamentals, risk factors, and market conditions before making investment decisions.
As the IPO countdown begins, prospective investors should monitor the company’s announcements, review the red herring prospectus, and keep an eye on GMP trends. The listing outcome will offer further insight into investor appetite for quality mid-sized pharmaceutical firms in India.
