Anthem Biosciences Limited, a Bangalore-based contract research, development and manufacturing organization (CRDMO) with capabilities in both new chemical entities (NCEs) and new biological entities (NBEs), concluded its ₹3,395 crore IPO subscription on July 16, 2025, with an overwhelming response. The fully-offer-for-sale transaction, priced between ₹540–₹570 per share, saw investors apply for nearly 64 times the shares on offer. With listing expected on July 21, 2025, Anthem’s IPO has captured attention due to its scale, strong demand, and its position within India’s pharmaceutical export growth strategy.
IPO Structure and Anchor Round
In contrast to traditional IPO models, Anthem’s share sale comprised solely of an Offer For Sale (OFS). Existing shareholders—including promoters and early-stage investors—offered 5.96 crore shares valued at ₹3,395 crore. The company received no fresh capital, with all proceeds allocated to sellers. Prior to subscription, the company raised ₹1,016 crore in an anchor round at the upper band price of ₹570, drawing investments from globally recognized institutions like the Abu Dhabi Investment Authority, Eastspring, and JP Morgan India among others. The complete OFS structure signals confidence from incumbents while forfeiting growth capital in favor of liquidity.
Subscription Intensity: Record Breaking, Across Investor Categories
Anthem’s IPO drew intense investor interest:
On Day 2 (July 15), the offering witnessed full subscription, with total demand at 3.28×, driven by a 9.7× bid from NIIs (non-institutional investors) and 2.1× by retail investors. QIB demand was still building at 0.6× at the time .
By Day 3 (July 16), subscriptions soared to 63.9× overall, including 182.7× in the QIB segment, 42.4× from NIIs, and 5.6× from retail investors .
With grey market premium hovering around ₹156–162, Anthem’s listing gains are estimated at roughly 28% .
Such extraordinary subscription levels reflect investor confidence in Anthem’s positioning, fundamentals, and the global trend favoring pharmaceutical supply chains rooted in India.
Company Profile: Deep CRDMO Footprint
Founded in 2006, Anthem is one of India’s most integrated CRDMOs, offering discovery, development, and scalable commercial manufacturing capabilities. FY 2025 revenue reached ₹1,844 crore, a 70% increase from ₹1,056 crore in FY 2023, with net profit growing from ₹385 crore to ₹451 crore .
Its two main business segments include:
- CRDMO Services: Accounting for 81.7% of FY 25 revenue (₹1,506 crore), with early-stage R&D contributing 10.9% and clinical-to-commercial manufacturing 70.8%.
- Speciality Ingredients: Comprising 18.3% of revenue (₹338 crore), focused on fermentation-based APIs, probiotics, peptides, vitamins, and biosimilars.
Anthem serves over 550 clients across 44 countries, with the top five customers contributing about 70.9% of FY 25 revenue, and the largest single client nearly 24.2% .
Quality Backing: Anchor Book and Global Investor Confidence
The ₹1,016 crore anchor round featured participation from prestigious international funds, institutional investors, and domestic mutual funds like HDFC, ICICI Prudential, Axis, and UTI . The combination of high-profile anchor investors and massive retail/QIB demand strengthens the company’s credibility ahead of its stock-market debut.
IPO Implications: Liquidity and Listing Prospects
Shares are expected to be allotted on July 17, credited to demat accounts by July 18, and formally listed on July 21 . With a premium MOAT visible in the grey market, expectations run high for Anthem’s debut valuation.
Strengths and Key Catalysts
- Integrated CRDMO Model: Anthem offers depth from drug discovery to end-stage manufacturing, attracting global pharma firms diversifying supply chains post-China concentration .
- Strong Growth Trajectory: Financial performance shows consistent revenue growth and ~20–25% net margins.
- Global Anchor Participation: The anchor round legitimizes market valuation and affirms institutional trust .
- Market Timing: As global pharma firms pivot post-pandemic toward India, Anthem’s listing taps into favorable structural trends.
Risks and Considerations
- Concentrated Client Base: Heavy reliance on a few large clients—top five making 70.9% and the single largest 24.2% of revenue—poses retention risks.
- OFS Structure: The company receives no fresh capital from the IPO, limiting funds for future expansion .
- Execution in Scale-Up: Post-listing, maintaining growth without fresh equity capital would depend on fund use and operational leverage.
- Regulatory and Geopolitical Risk: Global drug regulation, trade policy changes, or currency volatility could impact margin stability.
- Listing Volatility Risk: Though GMP is high, market overhang and profit booking may impact early performance.
Market Outlook and Comparative Positioning
Anthem stands among leading Indian CRDMOs like Divi’s, Sai Life Sciences, and Syngene, differentiated by its dual NCE/NBE capabilities, strong margins, and integrated business model . Its listing allows both domestic and global investors to tangibly invest in India’s high-growth pharmaceutical manufacturing ecosystem.
Analyst Commentary and Recommendation
Analysts view Anthem’s IPO favorably:
Mint & Moneycontrol report analysts describing Anthem as “innovation-driven” with robust technology, supportive growth trajectory, and strong margins (~23%) .
Brokerage Anand Rathi recommends “Subscribe”, citing resilient financials and growth potential, noting the promoter holding of over 52% supports alignment with public shareholder interests .
Nirmal Bang also advises subscribing, emphasizing Anthem’s market breadth and opportunity in commercialization pipeline .
Conclusion: A Transformative IPO in Pharma Infrastructure
Anthem Biosciences’ ₹3,395 crore OFS marks a monumental moment in India’s pharmaceutical capital markets. It shines a spotlight on CRDMOs, offering investors exposure to India’s deepening role in global pharma supply chains. Strong subscription momentum, deep anchor support, and structural industry tailwinds position Anthem well at listing.
However, lack of fresh capital, client concentration risks, and reliance on operational execution require monitoring. The success of its listing—be it margin guidance or stock performance—will be tested on its ability to convert short-term listing gains into sustained business growth.
