What is Anthem Biosciences? Analyzing the IPO

Anthem Biosciences is making waves in the Indian stock market with its initial public offering (IPO) that opened on July 14, 2025. This Bengaluru-based company is a big player in the pharmaceutical world, and its IPO has caught the attention of investors. 

But what exactly is Anthem Biosciences, and is its IPO worth your investment? Let’s dive into the details, from the company’s background to the IPO’s key metrics, to help you decide.

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Understanding Anthem Biosciences

Founded in 2006, Anthem Biosciences is a Contract Research, Development, and Manufacturing Organization (CRDMO) based in Bengaluru, India. It’s a one-stop shop for pharmaceutical and biotech companies, offering end-to-end services from drug discovery to commercial manufacturing. 

Anthem specializes in both small and large molecules, including New Chemical Entities (NCEs) and New Biological Entities (NBEs), which makes it stand out among Indian CRDMOs. It serves over 550 clients across 44 countries, with a strong presence in regulated markets like the US, Europe, and Japan.

What They Do

Anthem Biosciences provides a wide range of services, including drug discovery, development, and production of specialized ingredients like probiotics, enzymes, peptides, and biosimilars. The company operates state-of-the-art facilities with a fermentation capacity of 142 kL, the largest among Indian CRDMOs, and plans to expand to 182 kL by mid-2026. 

Its innovative approach includes advanced technologies like RNA interference, antibody-drug conjugates, and green chemistry, positioning it as a leader in the fast-growing CRDMO industry.

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Financial Snapshot

Anthem has shown impressive growth. In FY25, it reported revenues of ₹1,844.55 crore, a 30% jump from ₹1,483.07 crore in FY24. Its profit after tax (PAT) grew 23% to ₹451 crore from ₹367.31 crore. 

With a net margin of 23.4% and an EBITDA margin of 36.81%, Anthem outperforms peers like Syngene International (28.60%) and Divi’s Laboratories (31.71%). Its return on equity (ROE) of 20.82% is also top-tier, reflecting strong capital efficiency.

Breaking Down the Anthem Biosciences IPO

Anthem Biosciences’ ₹3,395 crore IPO runs from July 14–16, 2025, via an OFS of 5.96 crore shares at ₹540–₹570 each. Retail investors need at least ₹14,820 (26 shares). Shares listed on BSE/NSE July 21, with allotment on July 17. As a full OFS, proceeds go to selling shareholders. ₹1,016 crore was raised from anchor investors like ADIA and HDFC MF.

Subscription Status

By 11:30 AM on Day 3 (July 16, 2025), the IPO was subscribed 7.44 times, with strong demand from non-institutional investors (NII) at 21.13 times. The retail portion was booked 3.23 times, and qualified institutional buyers (QIBs) filled 4.59 times their quota. This robust response indicates high investor confidence.

Grey Market Premium (GMP)

The grey market premium (GMP) for Anthem Biosciences has been climbing, reaching ₹156 on July 16, 2025. Based on the upper price band of ₹570, this suggests a potential listing price of around ₹726, offering a 27.37% gain. The GMP’s steady rise from ₹79 on July 9 reflects growing market optimism.

Valuation and Pricing

At ₹570, Anthem’s market cap is ₹31,867 crore with a P/E of 70.6–70.9, higher than Syngene (54x) but below Sai Life Sciences (94x). Some see it as pricey, but strong growth and margins support the valuation. EPS is ₹8.04, and ROCE stands at a solid 26.88%.

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Should You Invest?

Anthem Biosciences stands out in CRDMO with strong tech, 30% revenue growth, 36.81% EBITDA margin, and 240+ active projects. Analysts like Anand Rathi and SBI Securities recommend subscribing. 

Promoters retain 52% stake, showing commitment. With a GMP of ₹156, it offers short-term gains and long-term potential in a high-barrier, profitable sector.

Risks to Watch

Anthem’s ~70x P/E may deter value investors, as it banks on strong future growth. Being a full OFS, it raises no fresh capital, possibly limiting expansion. The competitive CRDMO space, talent shortages, and pricing pressure may affect margins. Heavy export reliance also adds forex risk.

How to Apply

• Online Application: Use platforms like Zerodha or other brokerage apps to apply directly. Log in, select the Anthem Biosciences IPO, and submit your bid.

• Offline Application: Download the IPO form from the BSE or NSE website, fill it out, and submit it through your stockbroker.

• Investment Details: The minimum investment is ₹14,820 for 26 shares (one lot). Retail investors can apply for up to 13 lots (338 shares).

• UPI Mandate: Confirm your UPI mandate by 5:00 PM on July 16, 2025, to complete the application process.

• Check Allotment: Verify your allotment status on July 17, 2025, via KFin Technologies’ website using your PAN or application number.

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Conclusion

Anthem Biosciences, a high-growth CRDMO, offers IPO shares at ₹540–₹570. Strong financials, global clients, and a ₹156 GMP suggest solid listing gains. While the premium valuation and industry risks call for caution, believers in its growth story may find it worth the bet. Assess your risk appetite before investing.

FAQ

What does Anthem Biosciences actually do?

It’s a CRDMO that handles everything from drug discovery to manufacturing, specializing in both small and large molecules.

What’s the IPO price and lot size for retail investors?

The IPO is priced at ₹540–₹570 per share, with a minimum investment of ₹14,820 for 26 shares (1 lot).

How’s the GMP looking for Anthem’s IPO?

The GMP hit ₹156, pointing to a possible 27% gain at listing. That’s a strong bullish signal.

What’s Anthem’s edge over other CRDMOs?

A 36.81% EBITDA margin, 30% YoY revenue growth, and 240+ active projects give it a serious competitive edge.

Any red flags for investors?

Valuation is steep at ~70x P/E. Plus, it’s a full OFS, no fresh funds raised, and high export exposure means forex risks.

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