🧬 Anthem Biosciences IPO Analysis: Should You Subscribe?
IPO Price Band: ₹570 per share
Issue Size: ₹— 3395 Cr
Sector: Biopharmaceutical Contract Research & Manufacturing (CRAMS)
Listing: NSE, BSE
IPO Opening: 14th July 25 | Closing: 16th July 25
🔬 About the Company
Anthem Biosciences Ltd., established in 2007, is a leading CRAMS (Contract Research and Manufacturing Services) provider in India. It offers end-to-end solutions, including:
Research & Development (discovery to scale-up)
Intermediates and APIs
Finished formulations (nutraceuticals, injectables, etc.)
Biological and biosimilar research
Key Business Segments:
CDMO for Pharmaceuticals
CDMO for Nutraceuticals
Biologics (Microbial fermentation-based production)
With 4 state-of-the-art manufacturing facilities in Bangalore, Anthem has built strong relationships with over 1,100 global clients from 90+ countries.
Revenue Contribution (FY23):
🌍 Industry Overview & Growth Potential
Anthem operates in the CRAMS (CDMO) industry, which is witnessing robust growth globally and in India.
Global CRAMS Market:
Size (2022): $130 billion
Expected CAGR (2022–2027): 8–10%
Drivers: Outsourcing by Big Pharma, focus on cost reduction, need for faster time-to-market
Indian CDMO Market:
Size (2022): ₹65,300 crore
Expected to grow at CAGR of 11–13%
India is becoming a preferred CDMO hub due to:
Low-cost skilled manpower
Strong regulatory track record (USFDA approvals)
Government support under PLI schemes
🧭 Peer Comparison
*Based on current market price and trailing 12M EPS.
Anthem shows competitive profitability and stronger ROCE than many peers, offering attractive financial fundamentals.
📦 IPO Offer Details
👇 Object of the Offer:
Since it's a pure Offer for Sale (OFS), proceeds go to the selling shareholders, not the company. No fresh issue is planned.
💹 Financial Highlights
Revenue & Profit Growth (₹ Crore)
3-Year CAGR (FY21–FY23):
Revenue: 34.4%
PAT: 57.6%
🧮 Valuation at ₹570:
Though the P/E is high above peers, the high growth, margin expansion, and ROE support this premium. However Divislab is the best among all the companies considering Market size, Solvency and other parameters.
⚖️ Key Ratios – Solvency & Efficiency
Anthem maintains a strong solvency position with low debt and efficient capital usage.
📌 Basis for the Offer
Fast-growing Indian CDMO with 3-year CAGR of 34% in revenue and 58% in PAT.
High-margin business with increasing capacity and client base.
Strong financial discipline and consistent profitability.
Positioned to benefit from global pharma outsourcing wave and China+1 strategy.
Scalable model with plans for biologics and fermentation scale-up.
✅ Conclusion & Analyst Rating
Anthem Biosciences Ltd. is entering the public markets at a time when pharma outsourcing is gaining momentum. With:
Not a leader, Divis Labs wins here.
High revenue and PAT growth
Attractive ROE and ROCE
Strong global clientele
Resilient margins and capacity expansion
… it presents a strong investment case for long-term investors.
🔖 Verdict: ⭐️⭐️⭐️⭐️☆ (4/5) — Subscribe for Long-Term
While the absence of fresh issues limits immediate capital infusion into the business, the fundamentals remain compelling. Here Divis gets 4.5 Star rating.
📢 Disclosure:
This blog is meant solely for educational and informational purposes. It is not an investment recommendation. Investors are advised to do their own due diligence before making investment decisions.
