Anthem Biosciences IPO opens with 18% GMP: Should you subscribe?
What's the story
Anthem Biosciences, a Bengaluru-based company, has launched its initial public offering (IPO) on July 14. The issue will close on July 16. Ahead of the launch, the firm raised ₹1,016 crore from 60 institutional investors through its anchor book on July 11. Notable names such as Abu Dhabi Investment Authority and Government Pension Fund Global have picked up shares in this pharma company via the anchor book.
Market analysis
Anthem Biosciences operates in CROs and CRDMO space
Anthem Biosciences is strategically placed in the CROs and CRDMO space, key players in pharma and biotech. CRO stands for Contract Research Organization, while CDMO stands for Contract Development and Manufacturing Organization. CROs primarily focus on research-related services, while CDMOs handle both development and manufacturing for pharmaceutical and biotech companies. The company has a profitable track record against its peers, which it hopes to maintain by leveraging integrated manufacturing and technology capabilities.
Valuation details
IPO is OFS, no fresh funds coming in
Anthem Biosciences's IPO is a pure Offer for Sale, with no new funds going to the company. The firm is valued at a premium to most domestic CRDMO peers, due to its leading fermentation capacity, strong global client base, and robust financials. Based on annualized FY25 earnings, the company is seeking a PE of 70.6 times. Post-issue market cap stands at ₹31,867 crore making this issue fairly priced according to Anand Rathi's analysis.
IPO specifics
Price band, gray market premium, and key dates
The shares of Anthem Biosciences are offered in a fixed price band of ₹540 to ₹570 per share. The lot size for an application is 26. In the unofficial market, shares are trading at a gray market premium of ₹100 per share, suggesting an expected listing gain of nearly 18%. The allotment is likely to be finalized on July 17 and the tentative listing date is set as July 21.
Analyst views
Should you subscribe to this IPO?
Anand Rathi has given a subscribe call for Anthem Biosciences IPO. The brokerage believes the company has strong potential to sustain growth in both revenue and profitability metrics compared to its industry peers. Swastika Investmart also recommended subscribing for listing gains, highlighting the company's solid position in a high-growth sector, backed by robust financials and a well-established global client base.