Anthem Biosciences IPO opens for subscription. Should you bid?

Anthem Biosciences, a Bengaluru-based contract research, development, and manufacturing organization (CRDMO), will open its initial public offering (IPO) on July 14. The issue, which closes on July 16, is entirely an offer for sale (OFS) of Rs 3,395 crore, with no fresh issue component. The company will be listed on both the NSE and BSE.

The price band for the IPO is set at Rs 540–570 per share, with a minimum lot size of 26 shares. Ahead of the issue opening, the GMP is around 18% over the issue price

Founded in 2006, Anthem Biosciences operates in a niche space within the pharma value chain—offering end-to-end drug discovery, development, and manufacturing services. It is one of the few Indian CRDMOs with integrated capabilities in both small molecules (chemical-based) and large molecules (biologics). The company’s differentiated fee-for-service (FFS) model has helped it cater to small and mid-sized biotech firms globally, which make up a significant portion of its client base.

Anthem has worked with over 675 clients and executed more than 8,000 projects since inception. It reported robust financials in FY25, with an EBITDA margin of 36.8% and Return on Net Worth (RoNW) of 20.8%. As of March 2025, its net worth stood at Rs 2,410 crore.

The company’s facilities are cGMP-compliant and have approvals from global regulatory bodies including USFDA, ANVISA, TGA, and PMDA. With an eye on scaling, it is expanding its fermentation and synthesis capacities to meet future demand from complex biologics and specialty ingredients.

Should You Subscribe?

Anand Rathi and Canara Bank Securities have recommended a Subscribe rating for the issue. Analysts cite Anthem’s strong industry positioning, robust revenue visibility, and high-margin business model as key positives.

The IPO is priced at a P/E of 71x based on FY25 earnings, which is broadly in line with peers like Syngene (P/E ~51) and Divi’s Labs (P/E 83). While valuation is on the higher side, analysts believe it’s justified by the company’s scale, technology edge, and consistent profitability.

Given Anthem’s differentiated offering in the high-growth CRDMO space, and its track record of innovation and global clientele, the IPO offers a long-term growth opportunity for investors.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)