Anthem Biosciences IPO Day 2 update: Fully subscribed, GMP hits 20%

Anthem Biosciences Day 2 subscription status: The non-institutional investors (NIIs) subscribed about 1.55 times the quota reserved for them

Anthem Biosciences Day 2 subscription status: The initial public offering (IPO) of contract research, development, and manufacturing organisation (CRDMO) Anthem Biosciences has entered the second day of public subscription and has received a lacklustre response from investors so far. The issue has been subscribed to around 1.35 times, receiving bids for 59.45 million equity shares compared to the issue size of 44 million shares, according to NSE data.

 

The non-institutional investors (NIIs) subscribed about 3.36 times the quota reserved for them, and the retail investor portion was booked 1.04 times. However, the qualified institutional buyers (QIBs) subscribed only 38 per cent.

 

 

Ahead of the issue, the company raised ₹1,016 crore from anchor investors. The company allocated 17.8 million equity shares at the upper price end of the price band of ₹540 to ₹570 per share, according to the exchange filing.

Anthem Biosciences IPO GMP

On the second day of subscription, the unlisted shares of Anthem Biosciences were trading at ₹686 per share, commanding a grey market premium (GMP) of ₹ 116 or 20.35 per cent compared to the upper end price of ₹570, according to the sources tracking unofficial markets. On Monday, the Anthem Biosciences' unlisted shares were trading at a premium of ₹100 or 17.5 per cent in the grey market. 

Anthem Biosciences IPO Review

According to analysts at SBI Securities, the company, at the upper price band of ₹570, is valued at a P/E multiple of 70.9x based on FY25 earnings on post-issue capital. The company has registered strong Revenue/Ebitda/adjusted PAT CAGR of 32 per cent/ 25 per cent /18 per cent (FY23-FY25) to ₹1,845 crore/ ₹671 crore/ ₹451 crore, respectively. 

 

"The company is well placed to encash on the fast-growing CRDMO industry on the back of capacity expansion plans and funding in place, a well-established track record of profitable growth, and a strong business pipeline. The entire issue is OFS, and the business is self-sufficient to fund its growth capital," the brokerage said.

 

While comparing with peers, the IPO is fairly priced, along with a superior return and margin profile. SBI Securities has given a 'Subscribe' rating to the IPO at the cut-off price for a long-term investment horizon. READ MORE

Anthem Biosciences IPO details

Anthem Biosciences IPO comprises an offer for sale (OFS) of 59.6 million equity shares and no fresh issue component.   

 

The mainline issue will close for public subscription on Wednesday, July 16. The basis of allotment of shares is likely to be finalised on Thursday, July 17. Anthem Biosciences IPO will be listed on the bourses, BSE and NSE, tentatively on Monday, July 21. 

 

A retail investor would need a minimum investment amount of ₹14,820 to bid for at least one lot at the upper price band.  Retail investors can bid for a maximum of 13 lots or 338 shares, amounting to ₹1,92,660.

 

Kfin Technologies is the registrar of the issue. JM Financial, Citigroup Global Markets India, JP Morgan India, and Nomura Financial Advisory and Securities (India) are the book-running lead managers.

About Anthem Biosciences

Incorporated in 2006, Anthem Biosciences is a Contract Research, Development, and Manufacturing Organisation (CRDMO) with fully integrated operations comprising drug discovery, development, and manufacturing processes. The company caters to a diverse category of customers, including emerging biotech firms and large pharmaceutical companies on a global scale. 

 

It also manufactures specialised fermentation-based APIs, including probiotics, enzymes, peptides, nutritional actives, vitamin analogues, and biosimilars.