A Blockbuster Debut on the Bourses

Anthem Biosciences Ltd, a leading Bengaluru-based Contract Research, Development and Manufacturing Organization (CRDMO), made a stellar debut on the Indian stock exchanges today, listing at ₹723—a sharp 27% premium over the upper end of its IPO price band of ₹540–₹570. The listing, widely anticipated in financial circles, comes after an overwhelming investor response to its ₹3,395 crore initial public offering (IPO), which was oversubscribed nearly 29 times by institutional buyers alone.

A Closer Look at Anthem Biosciences

Founded in 2007, Anthem Biosciences has steadily evolved into one of India’s leading integrated CRDMO players, offering a wide spectrum of services across drug discovery, development, and commercial manufacturing. The company operates in the niche domain of fermentation-based active pharmaceutical ingredients (APIs), along with peptides, enzymes, and probiotics—sectors with high global demand and limited supply-side competition.

IPO Details: A Resounding Success

The IPO, which opened between July 14 and July 16, saw participation from all investor segments:

- Qualified Institutional Buyers (QIBs) led the charge with bids oversubscribed 29.4x.
- Non-Institutional Investors (NIIs) followed with a subscription of over 12x.
- Retail investors, despite the higher price tag, also responded enthusiastically with the retail portion being oversubscribed by 7x.

The company raised ₹1,016 crore from 60 anchor investors ahead of the public issue. The anchor book featured prominent global names such as Abu Dhabi Investment Authority, Goldman Sachs, Nomura, ICICI Prudential, and Norges Bank, further cementing Anthem’s global credibility.

Strategic Expansion and Financial Health

Anthem’s robust financials are another key factor behind its IPO appeal. In FY24–25, the company posted:

- Revenue: ₹1,844 crore
- EBITDA: ₹642 crore
- Net profit: ₹451 crore
- EBITDA margin: 34.8%

These numbers reflect not only operational efficiency but a business model poised for scalability. The company is currently expanding its manufacturing capacity with Unit 4, a 30-acre site near Bengaluru, expected to add significant capacity in the coming fiscal.

Riding the China-Plus-One Wave

Anthem’s IPO couldn’t have been better timed. Global pharmaceutical majors are increasingly looking to de-risk their supply chains by shifting procurement and partnerships away from China, a strategy widely known as the “China-Plus-One” model. Anthem, with its deep capabilities in fermentation (a historically China-dominated sector), positions itself as a rare Indian alternative.

A Symbol of Biotech’s Rising Tide in India

Anthem’s IPO is also symbolic of a larger trend: the mainstreaming of biotech investing in India. While IT and consumer sectors have long been stock market darlings, investor interest is now pivoting toward life sciences, healthcare R&D, and advanced manufacturing—sectors that promise long-term value in a post-pandemic world.

Not Without Risks

Despite the positive outlook, Anthem’s journey ahead isn't without challenges. Regulatory compliance, capacity execution risks, client concentration, and global pricing pressures are factors that could impact growth. However, with a strong pipeline, global demand, and continued capex, many analysts believe these are manageable execution risks, not structural flaws.

Market & Analyst Sentiment

Most brokerages have issued ‘Subscribe’ or ‘Long-Term Buy’ ratings for Anthem post-listing. Here's a snapshot of recent market commentary:

- Motilal Oswal: "A unique play on India's emergence as a bio-manufacturing hub."
- Kotak Institutional Equities: "IPO valuations look reasonable."
- ICICI Securities: "Sustained client addition and long-term contracts make revenue predictable."

What This Means for Investors

For long-term investors, Anthem offers exposure to a sunrise sector with global tailwinds. Its IPO is not just a financial event but a bellwether of the biotech wave India is finally ready to ride. In a market fatigued by overvalued new-age tech IPOs, Anthem brings in credibility, profitability, and global demand in one package.