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Anthem Biosciences' initial public offering (IPO) shares made their debut on the National Stock Exchange (NSE) on Monday, marking a successful listing with a premium of approximately 27% over the IPO price. The company, with a strong foundation in the biotechnology and pharmaceutical sectors, had set the IPO price in the range of Rs 540 to Rs 570 per share. The public offering, which aimed to raise Rs 3,395 crore, garnered significant investor interest, resulting in an impressive subscription rate of about 64 times during the offer period from July 14 to 16. This robust demand reflects the market's confidence in Anthem Biosciences' business model, growth prospects, and its position within the burgeoning biotech industry in India. The strong subscription numbers also suggest that investors were keen to participate in the company's journey, recognizing its potential for future expansion and profitability. The listing's performance is a testament to the company's strong fundamentals and the favorable market sentiment towards the healthcare and biotechnology sectors. The successful listing provides Anthem Biosciences with access to capital markets, allowing it to fund further research and development, expand its manufacturing capacity, and explore new avenues for growth. Furthermore, it enhances the company's visibility and credibility, potentially attracting more clients and partners in the future. The IPO's success also highlights the increasing maturity of the Indian capital markets and the growing appetite of investors for well-managed and promising companies in the healthcare and biotechnology space.
On the NSE, Anthem Biosciences' shares were listed at Rs 723.05 per share, reflecting a premium of 26.85% over the IPO price. Simultaneously, on the Bombay Stock Exchange (BSE), the shares were listed at Rs 723.10 apiece, representing a similar premium of 26.86%. Following the listing, the total market capitalization of the company stood at Rs 40,610.02 crore, indicating substantial market value and investor confidence in its long-term prospects. Prior to the IPO, Anthem Biosciences had already raised Rs 1,016 crore from anchor investors, which further underscores the confidence institutional investors had in the company's potential. While the listing price was slightly below the grey market expectations, which had anticipated listing gains of around 31%, the actual performance still demonstrated a significant positive response from the market. The discrepancy between the grey market expectations and the actual listing price could be attributed to various factors, including market volatility, overall investor sentiment, and adjustments in market valuations. However, the fact that the shares still listed at a substantial premium indicates a robust underlying demand for the company's stock. The listing price reflects the market's recognition of Anthem Biosciences' value proposition, its strong financial performance, and its strategic positioning within the pharmaceutical and biotechnology landscape.
Naren Agarwal, CEO and Partner at Wealth1, provided insights into Anthem Biosciences' unique strengths, emphasizing its comprehensive end-to-end CRDMO (Contract Research, Development, and Manufacturing Organization) platform. Agarwal highlighted the company's expertise in fermentation APIs (Active Pharmaceutical Ingredients), ADCs (Antibody-Drug Conjugates), peptides, oligonucleotides, and RNA therapeutics. He also noted that Anthem Biosciences possesses the largest fermentation capacity in India, amounting to 182 kL, and serves a vast client base of over 675 global partners across 44 countries. Agarwal emphasized the company's impressive financial performance, with revenue growing at a compound annual growth rate (CAGR) of 25-30%, EBITDA margins nearing 37%, and Return on Capital Employed (ROCE) in the high teens. He also pointed out that the IPO was a pure Offer for Sale (OFS), meaning there was no dilution of existing equity, which is a positive factor for investors. Agarwal expressed optimism that if the listing performance met grey market projections and the company maintained its momentum in the second quarter earnings, Anthem Biosciences would emerge as a flagship stock, leading India's resurgence in the biotechnology sector. His analysis provides a strong endorsement of the company's potential and its strategic importance in the Indian biotech landscape.
Narendra Solanki, Head of Fundamental Research (Investment Services) at Anand Rathi Shares and Stock Brokers, offered a valuation perspective on Anthem Biosciences. He noted that based on annualized FY25 earnings, the company is seeking a price-to-earnings (PE) ratio of 70.6 times. He also pointed out that the post-issue market capitalization stood at Rs 31,867 crore. Solanki concluded that the issue was fairly priced, considering the company's strong growth, industry-leading margins, and steady profitability. He advised investors who were allotted shares to consider holding them for long-term growth. Solanki's analysis provides a balanced view of the company's valuation, highlighting both its potential and the need for investors to take a long-term perspective. His recommendation to hold the shares suggests confidence in the company's ability to deliver sustained growth and profitability in the coming years. This positive outlook is likely to encourage investors to maintain their positions and potentially attract new investors to the stock.
Anthem Biosciences is described as a tech-driven, integrated service provider in drug discovery, development, and manufacturing for both small molecules and biologics. The company is positioned as one of the few players offering end-to-end services across the drug lifecycle, catering to the CRO and CRDMO segments in the pharmaceutical and biotechnology industries. This comprehensive service offering differentiates Anthem Biosciences from its competitors and positions it as a valuable partner for pharmaceutical and biotechnology companies seeking to outsource various aspects of their drug development and manufacturing processes. The company's focus on technology and integration further enhances its efficiency and effectiveness, allowing it to deliver high-quality services to its clients. The company's ability to provide end-to-end services across the drug lifecycle is a significant competitive advantage, allowing it to capture a larger share of the market and build long-term relationships with its clients. The information presented in the article emphasizes the importance of consulting with certified experts before making any investment decisions, reiterating the need for caution and informed decision-making in the stock market. This disclaimer highlights the inherent risks associated with investing and the importance of seeking professional advice before committing capital to any investment.
Source: Anthem Biosciences shares list at 27% premium over IPO price on NSE; should you buy, sell or hold?