Bengaluru-based Anthem Biosciences, a contract research, development, and manufacturing organization (CRDMO), is seeing robust demand for its Initial Public Offering (IPO). On the second day of bidding (July 15, 2025), the IPO was nearly twice oversubscribed, underscoring strong investor interest, particularly among retail and high-net-worth individuals (HNIs), even as grey market premium (GMP) continues to surge.
Key Details of the IPO
Anthem Biosciences launched its IPO on July 14, 2025, with a price band of ₹540–₹570 per share. Investors are required to apply for a minimum of 26 shares, with subsequent bids in multiples of 26. The offering comprises a complete Offer for Sale (OFS) of up to 5.95 crore equity shares by existing shareholders, aiming to raise ₹3,395 crore.
As of 1:00 PM on Day 2 (Tuesday), the IPO saw bids for over 8.60 crore shares against the 4.40 crore shares on offer, resulting in an overall subscription of 1.95 times. The retail investor segment was subscribed 1.38 times, while non-institutional investors oversubscribed their portion by 5.37 times. The employee quota saw a 1.72x subscription. Meanwhile, the Qualified Institutional Buyers (QIBs) segment had a relatively slower start with 40% subscription.
The bidding window remains open until July 16, 2025, and shares are expected to be listed on BSE and NSE by July 21.
Strong GMP Indicates Positive Market Sentiment
In the grey market, the IPO is commanding a premium of ₹120–₹125 per share above the upper price band. This translates to an estimated listing gain of 22–23%, reflecting positive investor sentiment despite ongoing market volatility. Such premiums often suggest optimistic expectations for listing day performance.
About the Company: A CRDMO Powerhouse
Founded in 2006, Anthem Biosciences operates across the entire drug discovery and development spectrum, serving global pharmaceutical and biotech companies. With expertise in high-complexity molecules, and end-to-end service capabilities, it is regarded as a preferred outsourcing partner for global innovators.
In FY2025, the company reported revenue of ₹1,930.29 crore and a net profit of ₹451.26 crore, showcasing strong profitability and operational efficiency. Notably, 80% of its revenue comes from exports, reinforcing its global relevance.
Anchor Investment Boosts Credibility
Ahead of the public issue, Anthem raised ₹1,016 crore from 60 anchor investors, including institutional giants, further strengthening investor confidence. The anchor book participation reflects institutional belief in the company’s future prospects.
Analyst View: A Long-Term Play
Several brokerages have issued positive albeit cautious outlooks on the IPO:
B&K Securities highlighted the company’s superior manufacturing capabilities, especially amid ongoing brownfield expansion of Unit 2 and greenfield development at Unit 3. However, it noted that the valuation—P/E of 71x and EV/EBITDA of 47x—leaves limited short-term upside, recommending the issue as a “Subscribe for long-term” opportunity.
For context, peer Divi’s Laboratories, a leading CDMO player, trades at P/E of 82x on FY25 estimates.
SMC Global Securities rated the IPO 2-stars, citing strategic strengths like advanced R&D infrastructure and a new Unit 4 underway. Yet, they cautioned about certain risks:
High customer concentration (71% of revenue from top clients),
Heavy reliance on fee-for-service contracts, and
Exposure to international suppliers for raw materials.
IPO Structure & Management
The IPO is managed by an elite syndicate of investment banks including JM Financial, Citi, JP Morgan, and Nomura, with Kfin Technologies as the registrar.
Breakdown of allocations:
50% to QIBs,
15% to NIIs,
35% to retail investors,
A ₹50 discount for employees with ₹8.25 crore worth of shares reserved.
Anthem’s lean debt structure, sound governance, and continued investments in infrastructure suggest a long-term growth trajectory in the fast-evolving global CRDMO market.
The Road Ahead
With a market capitalization of ₹31,867 crore, Anthem Biosciences is entering the listed space with a strong brand, high investor visibility, and promising fundamentals. Its vertically integrated model and continuous investments in innovation and infrastructure uniquely position it to benefit from global outsourcing trends in the pharma and biotech sectors.
Yet, challenges remain. The heavy reliance on key clients and fee-based revenue model could constrain margins during uncertain global cycles. The IPO’s pure OFS nature—where no new capital is raised for growth—also tempers investor enthusiasm.
