Key Takeaways
- IPO Overview: A ₹3,395 crore Offer for Sale by a Bengaluru-based CRDMO company, with no fresh issue and a price band of ₹540–570 per share.
- Business Model: Offers end-to-end research, development, and manufacturing services for small molecules, biologics, enzymes, and fermentation-based products.
- Financial Health: Strong growth with FY25 revenue at ₹1,845 crore and net profit of ₹451 crore, along with healthy margins and return ratios. Serves over 550 clients across 44 countries with large-scale fermentation capacity, and is expanding further to meet global demand.
- Risks Involved: High dependency on top 5 clients for revenue, strong competition in the global CRDMO market, and no fresh capital raised through this IPO. Valued at around 70x P/E at the upper price band, slightly lower than listed peers, which makes it relatively reasonable for its sector.
- Who Should Invest: Suitable for long-term investors who want to tap into India’s fast-growing pharma outsourcing and biotech manufacturing space.
Table of Contents
Over the past decade, India has quietly cemented its reputation as the “pharmacy of the world.” But while much of the limelight has gone to API giants and generic drugmakers, a different kind of opportunity is emerging, one that sits upstream in the drug development lifecycle.
Anthem Biosciences Limited is a contract research, development, and manufacturing organization (CRDMO) that helps global pharmaceutical and biotech companies innovate more quickly and launch therapies more efficiently. Supported by high margins, huge global connections, and a scalable platform, the company is now entering the public market with a ₹3,395 crore IPO.
So, is this just another pharma listing? Or does Anthem Biosciences IPO offer serious long-term potential for investors who understand the evolution of global healthcare value chains?
Anthem Biosciences IPO is open for subscription from (28th Apr 2025) today onwards!
Anthem Biosciences IPO Details:
- IPO Open Date 14th July 2025, Monday
- IPO Close Date 16th July 2025, Wednesday
- Price Band ₹540-₹570 per share
- Lot Size 26 shares
- Face Value ₹2 per share
- Issue Size at upper price band ₹3,395 crore (Offer For Sale ₹3395 crore)
- Listing exchanges NSE, BSE
- Cut-off time for UPI mandate confirmation by 5 PM on July 16, 2025
The tentative timeline for the IPO is as follows:
- Basis of Allotment 17th July 2025, Thursday
- Initiation of Refunds (if not allotted) 18th July 2025, Friday
- Credit of Shares to Demat (if gets allotments of shares) 18th July 2025, Friday
- Listing Date 21st July 2025, Monday
About the Company
Anthem Biosciences Limited, incorporated in 2006, is involved in contract research, development, and manufacturing organization (CRDMO) services and manufacturing & sales of specialty ingredients. The company has integrated NCE (New Chemical Entity) and NBE (New Biological Entity) capability across drug discovery, development, and commercial manufacturing. It caters to over 550 customers in business segments across 44 countries, including the United States, various European nations, and Japan.
The company’s business segments comprise:
- CRDMO Services: It serves as a one-stop solution, providing a comprehensive, integrated and highly customizable range of end-to-toend services across the NCE and NBE lifecycles, from target identification and the concept stage, preclinical development, supporting its customers by manufacturing development batches of molecules used for clinical (Phase I, II and III) trials up to commercial manufacturing, for both small molecules and biologics.
- Specialty Ingredients: It manufactures and sells complex specialized fermentation-based APIs (Active Pharmaceutical Ingredients), including probiotics, enzymes, peptides, nutritional actives, vitamin analogues and biosimilars.
Let’s look at the revenue breakup.
Sector Outlook in India
The global pharmaceutical industry was valued at $1,524 bn in CY24 and is expected to grow at a CAGR of 6.4% to reach $2,076 bn by CY29, driven mainly by factors such as the growth of the elderly population, rising incidence of chronic diseases, sedentary lifestyles, and increasing health awareness.
The Indian CRDMO industry is projected to grow from $8.4 billion in CY24 to $15.4 billion by CY29, with a compound annual growth rate (CAGR) of 13.4%. Similarly, the API market, in which Anthem also operates, is expected to rise from $285 billion to $400 billion by CY29. As pharmaceutical companies continue to outsource R&D and manufacturing to reliable partners, CRDMOs offering integrated services, regulatory expertise, and consistent execution are likely to see significant benefits.
Financial Performance of the Anthem Biosciences IPO
Anthem Biosciences has shown consistent financial strength and operational efficiency over the past three years. Revenue from operations grew from ₹1,057 crore in FY23 to ₹1,845 crore in FY25, reflecting a robust CAGR driven by increasing demand for its CRDMO and speciality ingredient services. EBITDA stood at ₹671 crore in FY25, up from ₹505 crore in FY24, with margins improving slightly to 36.4%, indicating effective cost control and strong pricing power in a competitive industry. Net profit rose to ₹451 crore in FY25, translating into a PAT margin of 24.5%. Although PAT margins have slightly declined from the FY23 high of 36.4% (due to exceptional items), the return on equity remained stable at 20.8% in FY25, reflecting capital efficiency.
Now, let’s look at the key fundamental parameters of Anthem Biosciences and how it compares with its peer companies, Syngene International Ltd, Divi’s Laboratories Ltd, Sai Life Sciences Ltd, and Cohance Lifesciences Ltd., in this competitive landscape.
Anthem’s EBITDA and PAT margins are 36.4% and 24.5% respectively, higher than Syngene (28.6% and 13.4%), Divi’s Labs’ (31.7% and 22.6%), and Sai Life Sciences (23.9% and 9.8%). Anthem Biosciences isn’t the cheapest stock, but it offers one of the best combinations of margin profile, capital efficiency, and growth visibility.
Objectives of the Issue
This IPO is a pure OFS, meaning all ₹3,395 crore will go to existing shareholders. Promoter holding will reduce marginally from 77% to 75%, and public float will increase to 25%.
Let’s now look at the risk factors of the Anthem Biosciences IPO.
Risk Factors
Despite its strengths, Anthem is not without risks:
- Client Concentration: The top 5 clients contributed ~71% of revenue in FY25. Loss of any key account could materially impact cash flows.
- Geographic Concentration: All manufacturing facilities are located in Karnataka, exposing the business to region-specific risks.
- Channel Dependency: US market access is dependent on DavosPharma, a third-party sales partner and shareholder.
- Product Lifecycle Risk: 54% of FY25 revenue came from innovator molecules. Patent expirations could lead to commoditization and margin pressure.
- Import Dependency: ~48% of raw materials were imported in FY25, up from ~25% in FY24, increasing currency and supply chain risk.
- Regulatory Environment: Operating in multiple jurisdictions necessitates stringent regulatory compliance, which could delay product approvals or attract penalties.
Should you subscribe to the Anthem Biosciences IPO?
So, with all the excitement, is it wise to invest your hard-earned money in the Anthem Biosciences IPO?
Anthem operates in a structurally attractive, innovation-led segment of the pharmaceutical ecosystem. Its integrated CRDMO model, healthy margins, high client retention, and capital-efficient expansion plan position it well for long-term value creation. However, the IPO is entirely an Offer for Sale with no fresh capital infusion, and there are genuine concerns around client concentration, geographic risk, and reliance on key partners like DavosPharma. Additionally, the stock is priced at a forward P/E of ~71x, which implies that much of the near-term growth optimism is already factored into valuations.
Looking ahead, Anthem is focused on expanding manufacturing capacity and broadening its specialty ingredient portfolio, particularly in high-barrier, fermentation-based APIs such as enzymes and biosimilars. The company also plans to deepen client relationships in regulated markets and may pursue both organic and inorganic opportunities globally, including in cost-effective jurisdictions in Europe. If it executes well, Anthem could evolve into one of India’s most prominent listed names in the global life sciences outsourcing space.
Before investing in the Anthem Biosciences IPO, you should carefully consider both the potential benefits and the associated risks. In this blog, you will get an in-depth analysis of the main advantages and possible drawbacks of this investing opportunity. The Anthem Biosciences IPO gets an “Average” rating from StockEdge’s expert panel, indicating that the chance is balanced and cautious.
For more detailed information, we’ve created a comprehensive Anthem Biosciences IPO Note, which includes a deep dive into the company’s financials and a SWOT analysis, helping you understand its growth potential.
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