Blog

IPO Details

• IPO opening: July 14, 2025
• Closing: July 16, 2025
• Issue size: ₹3,395.00 crores
• Issue type: Bookbuilding, Offer For Sale (OFS)
• Price band: ₹540 to ₹570 per share
• Lot size: 26 shares
• Investor allocation: Not more than 50% for QIBs, not less than 35% for Retail, not less than 15% for NIIs
• 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
• Registrar: Kfin Technologies Limited

About the Company

Anthem Biosciences Limited (ABL) was incorporated in 2006. It operates as an innovation-driven and technology-focused Contract Research, Development, and Manufacturing Organization (CRDMO). The company provides fully integrated operations across drug discovery, development, and manufacturing. ABL manufactures specialized fermentation-based APIs, including probiotics, enzymes, peptides, nutritional actives, vitamin analogues, and biosimilars. It is one of the few companies in India with integrated New Chemical Entity (NCE) and New Biological Entity (NBE) capabilities. The company’s CRDMO platform includes 5 main modalities: RNAi, ADC, peptides, lipids, and oligonucleotides, and 4 manufacturing capabilities: custom synthesis, flow chemistry, fermentation, and biotransformation. Anthem Biosciences was a pioneer in India for introducing biotransformation in 2014 and flow chemistry in 2019.

The company’s registered and corporate office is located in Bengaluru, Karnataka, India. As of March 31, 2025, ABL had 2,062 employees, including 1,015 scientific staff and 35 PhDs. The promoters of the company are Ajay Bhardwaj, Ganesh Sambasivam, K Ravindra Chandrappa, and Ishaan Bhardwaj. Anthem Biosciences serves a diverse, global customer base across 44 countries, including the U.S., Europe, and Japan.

Financials The financial information for Anthem Biosciences Ltd. (Restated Consolidated Basis) is presented below:

Post-IPO market capitalization is ₹31,867.39 crores.

The company’s revenue increased by 30% and profit after tax rose by 23% between FY24 and FY25. The company has shown steady growth in its top lines, but a decline in net profit for FY24 was attributed to an exceptional income adjustment in FY23. The management is confident of maintaining good margins due to its unique position and quick solutions provided to global customers.

Anchor investors.

Anthem Biosciences Limited raised a total of ₹1,016 crore from 60 anchor investors through its anchor book allocation, with 1.78 crore shares allotted at ₹570 per share.The top 10 anchor investors and their approximate percentage allocations are:

• Abu Dhabi Investment Authority (6.87%)
• Government Pension Fund Global (6.87%)
• Eastspring Investments (6.87%)
• Amundi Funds (6.87%)
• PineBridge Global Funds (6.87%)
• Societe Generale (6.87%)
• HDFC Mutual Fund (6.87%)
• ICICI Prudential Mutual Fund (6.87%)
• Axis Mutual Fund (6.87%)
• UTI Mutual Fund (6.87%)

The remaining anchor investors include other prominent mutual funds and asset management companies such as Nippon Life India Trustee, Aditya Birla Sun Life AMC, Whiteoak Capital Mutual Fund, Franklin, Mirae Asset, Motilal Oswal MF, Quant Mutual Fund, Edelweiss Trusteeship, Bandhan Mutual Fund, and several global institutional investors. Mutual funds received approximately 59.5% of the anchor allocation, amounting to around ₹604.4 crore.

Salient Points

• Use of funds: Anthem Biosciences will not receive any proceeds from this Offer, as it is entirely an Offer for Sale (OFS). All proceeds, after deducting Offer-related expenses and taxes, will go to the Selling Shareholders. The company expects to benefit from the listing of its Equity Shares by enhancing its visibility, brand image, and providing liquidity and a public market for the shares in India.

• Business scenario: The global pharmaceutical industry was valued at USD 1,524.0 billion in 2024 and is projected to grow at a CAGR of 6.4% to reach USD 2,076.0 billion by 2029. The Indian CRDMO industry is expected to grow at a 13.4% CAGR from 2024 to 2029, reaching an estimated value of USD 15.4 billion, outpacing the global industry rate of 9.1%. India holds a pivotal role as the third-largest producer of APIs globally, commanding an 8% share of the global API industry in 2024.

• Business operations: The company is known for its comprehensive, integrated, and highly customizable CRDMO services across the NCE and NBE lifecycle, from drug discovery to commercial manufacturing. It has completed over 8,000 projects and worked with more than 675 customers across various drug development stages. Over the last three Fiscals, it served 287 customers on over 3,000 projects.

• Revenue Model: Anthem Biosciences primarily utilizes a Fee for Service (FFS) model, which offers greater flexibility for customers, particularly emerging biotech firms. This model has contributed to high customer stickiness, with top 10 customers having been with the company for over 12 years.

• Business strategy: The company is focused on various technological advancements, including green chemistry techniques such as biotransformation, micellar technology, and flow chemistry. It intends to focus on the biosimilars market, which is expected to grow at an 18.8% CAGR from 2024 to 2029.

• Risks: The company’s financial performance is significantly affected by the success of the molecules it manufactures. If a development-stage or commercialized molecule fails or is withdrawn, it could adversely impact revenues and profitability. Operating in a highly regulated industry, the company faces risks from increasingly stringent domestic and international laws and regulations, which could necessitate new compliance requirements and additional approvals. As this is the company’s first public issue, there has been no formal market for its shares, and the Offer Price may not be indicative of the market price after listing.

• Litigations: The company is involved in litigation, including 4 criminal proceedings, 12 tax proceedings, and 1 statutory or regulatory proceeding against it, with an aggregate amount involved of ₹491.94 million. Notably, a criminal proceeding from November 2016 alleges violations of the Drugs and Cosmetics Act against its promoters and directors, Ajay Bhardwaj, Ganesh Sambasivam, and K Ravindra Chandrappa, as well as Anthem Cellutions (India) Private Limited.

• Revenue split: For Fiscal 2025, the ratio of revenue from Contract Research, Developmental & Commercial Manufacturing (CRDMO) to Specialty Ingredients (SI) was 82:18. For Fiscal 2024 and 2023, this ratio was 76:24.

• Capacity utilization and expansion: As of March 31, 2025, Anthem Biosciences has the largest fermentation capacity among Indian CRDMOs at 142 kL. This capacity is projected to increase to 182 kL by the first half of Fiscal 2026 after planned expansion activities. Additionally, 54 kL of its 130 kL custom synthesis capacity at Unit II has been completed, with the remaining 76 kL expected by the first half of Fiscal 2026.

• Clients: Top 10 customers have maintained relationships with Anthem for nearly 12 years or more.

• Working capital and receivables: Net Working Capital Days were 222.15 in FY25, 248.63 in FY24, and 241.94 in FY23. Inventory Days were 135.26 in FY25, 103.21 in FY24, and 98.07 in FY23. Trade receivables stood at ₹4,535.08 million in FY25, ₹4,935.56 million in FY24, and ₹2,771.76 million in FY23.

• CAGR Profits/Margins (last 3 years): Revenue grew at a CAGR of 32% from FY23 to FY25, while PAT grew at an 8% CAGR over the same period. Sales, EBITDA, and net profit margin achieved CAGRs of 24.8%, 29.9%, and 37.1% respectively between 2020 and 2025.

Peers

Management Commentary

• Anthem Biosciences offers a comprehensive range of services covering the entire drug development life cycle, from early discovery to commercial manufacturing, and works with both small and large molecules. This level of integration is described as rare, even on a global scale.  Management highlights not just the breadth of capabilities but also the quality of execution. Anthem has been an early mover in areas like ABC nuclear development and has introduced green chemistry platforms, such as biotransformation and prochemistry, consistently staying ahead of industry trends

Opinion

Based on the above and macro trends in the industry, I will apply for the IPO. Company has Niche capabilities which translate in very high margins compared to peers. Further it is going for significant capacity addition.

ost IPO equity capital: Rs. 112.32 crore P/E for FY 24: 87.16 times P/E FY25: 70.90 times

• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.