Anthem Biosciences IPO to open on July 14; raises ?1,016 crore worth shares via anchor book

IPO Details: Strong Institutional Response Ahead of Launch

Anthem Biosciences has confirmed that its IPO will open for public subscription on July 14, 2025, and will close on July 16, 2025. Ahead of the issue, the company successfully garnered ₹1,016 crore through anchor investments, underscoring significant confidence among institutional investors.

According to its red herring prospectus (RHP) filed with SEBI, the IPO comprises a fresh issue of equity shares worth ₹800 crore and an offer-for-sale (OFS) of up to 1.37 crore equity shares by existing shareholders.

The price band for the IPO is expected to be announced shortly. The proceeds from the fresh issue will primarily be used to augment the company’s manufacturing capabilities, repay existing debt, and fund working capital requirements.

Anchor Investors Show Confidence

The company disclosed that the anchor book attracted participation from a mix of domestic mutual funds, foreign institutional investors (FIIs), and sovereign funds. Names reportedly include marquee investors such as Goldman Sachs, Nomura, HDFC Mutual Fund, SBI Mutual Fund, and Abu Dhabi Investment Authority (ADIA), among others.

Market experts consider the successful anchor round as a positive signal. Richa Agarwal, Head of Equity Research at EquityLynx, said,

“Anchor investment of over ₹1,000 crore not only reflects robust demand from institutional investors but also sets a favorable tone for retail and HNI participation when the IPO opens.”

About Anthem Biosciences: A Rising CRAMS Player

Founded in 2007 and headquartered in Bengaluru, Anthem Biosciences is a leading player in the contract research and manufacturing services (CRAMS) segment. It serves global pharmaceutical, biotechnology, and specialty chemical clients, offering end-to-end drug development services from discovery to commercial manufacturing.

The company operates two key manufacturing facilities in Karnataka and is planning to expand its capacity through the proceeds from this IPO. With a client base in over 30 countries, Anthem has established long-term relationships with several top-20 global pharma companies.

In FY2024, Anthem reported consolidated revenue of ₹2,251 crore, up 22% year-on-year, and net profit of ₹426 crore, reflecting strong operational performance and margin improvement.

Industry Tailwinds and Growth Potential

The Indian CRAMS sector is witnessing accelerated growth, driven by the global push for outsourcing drug development, cost efficiency, and the need for supply chain diversification away from China. According to a recent report by EY, India’s CRAMS market is expected to grow at a CAGR of 12.5% between 2024 and 2030, crossing $30 billion by 2030.

Rahul Arora, MD & CEO of Nirmal Bang Institutional Equities, commented:

“Anthem Biosciences stands to benefit from the robust outsourcing trend in global pharma. Its R&D-focused approach, high-end infrastructure, and repeat business from global players position it as a strong candidate for long-term growth.”

Valuation and Market Comparison

Although the final valuation will depend on the pricing band, initial estimates suggest that Anthem Biosciences could command a market capitalization of around ₹12,000–₹14,000 crore post-listing. This would place it among the top-tier CRAMS players on Indian bourses, alongside firms like Syngene International and Divi’s Laboratories.

Analysts say the company’s EBITDA margins of over 30%, high return on capital employed (ROCE), and a diversified product mix support a premium valuation.

Investor Outlook: Should You Subscribe?

The IPO comes at a time when the Indian stock markets are scaling new highs, with strong retail participation and heightened interest in mid-cap and specialty chemical companies. Given Anthem’s strong fundamentals, robust anchor book, and long-term growth potential, the IPO is generating buzz among both institutional and retail investors.

However, analysts advise retail investors to be cautious and focus on valuation metrics and long-term business potential rather than short-term listing gains.

Anita Menon, Research Analyst at ICICI Direct, noted:

“We recommend a ‘Subscribe for Long Term’ rating. While the IPO may see decent listing gains, the real value lies in Anthem’s ability to scale in niche segments of CRAMS with IP-led services and customized manufacturing.”

Anthem Biosciences’ IPO marks a significant milestone in India’s growing biotech and pharma manufacturing sector. The overwhelming response from anchor investors highlights the company’s credibility and growth potential. As the IPO opens for subscription on July 14, it remains one of the most closely watched public offerings in the Indian markets this quarter.