Amanta Healthcare IPO: Heavy Retail Demand But Falling GMP Raises Eyebrows

Amanta Healthcare’s IPO has turned into a retail-driven show by the end of Day 2. The issue saw an overall subscription of 19.63x, led by non-institutional investors at a massive 36.41x and retail investors at 23.35x, reflecting strong confidence among individuals and HNIs. However, Qualified Institutional Buyers (QIBs) have so far subscribed only 0.53x of their quota, signaling caution from large funds. Meanwhile, the GMP, which stood at ₹28 before opening, has steadily dropped to ₹12, indicating that while demand inside the IPO is robust, the external sentiment on potential listing gains is cooling. This mix of strong retail excitement and softening GMP sets up a contrasting narrative for investors keenly following the company’s market debut.

IPO Overview

• IPO Date: September 1 to September 3, 2025
• Total Issue Size: ₹126 crore
• Price Band: ₹120 to ₹126 per share
• Lot Size: 119 Shares
• Tentative Allotment Date: September 4, 2025
• Listing Date: September 9, 2025 (Tentative)
• Subscription Status: 19.63x
• GMP: The GMP for Amanta Healthcare IPO is ₹12, reflecting a 9.5% gain over the issue price, according to Chittorgarh.com (as of September 2).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 2 of the IPO

On Day 2, Amanta Healthcare IPO saw a sharp surge in demand, closing at 19.63x subscription. Retail bids soared 23.35 times, while HNIs took the lead with 36.41x. QIB participation, however, stayed low at 0.53x. The GMP, which started at ₹28, dropped significantly to ₹12, hinting that despite strong formal demand, listing gains may not be as aggressive as early signals suggested.

Highlight of Day 1 of the IPO

The Amanta Healthcare IPO saw energetic action on its first day, hitting 4.62 times overall subscription. Retail investors led with a 6.72x bid, followed by non-institutional buyers at 5.82x, while QIBs stayed largely on the fence at just 0.04x. Meanwhile, the GMP slipped slightly to ₹25 from ₹28 a day earlier, reflecting ongoing—but balanced—interest and listing optimism.

How Does Amanta Healthcare Make Money?

Amanta Healthcare makes liquid medicines, like IV fluids, antibiotics, and injectables, that are used in hospitals and clinics, mostly given through drips or injections. The company uses advanced machines to pack these liquids so they stay sterile and safe. It sells its products in India through a big network of distributors and exports to 21 countries, working both as a branded drug maker and as a contract manufacturer for others. All products are made at one large plant in Gujarat with high-tech equipment, running at more than 90% capacity.

Objectives of the IPO

Here’s where the IPO money is going:

• ₹70 crore: To build and equip a new line for producing more sterile liquid medicines (SteriPort) at its Gujarat plant.
• ₹30.13 crore: To set up a new line for making small-volume liquid medicines at the same plant.
• The rest: For general business uses like working capital and other corporate needs.

Strengths:

• Exports to 21 countries, giving it a wide reach and more business opportunities.
• High operational efficiency, with production machines running at over 90%, so assets aren’t sitting idle.
• Return on Equity (ROE) is 12.4%, which means it makes ₹12.40 profit for every ₹100 shareholders invest, higher than some competitors.
• Diverse portfolio of essential hospital medicines, making the business less risky if one type loses demand.

Risks:

• All manufacturing happens at one place; if something goes wrong at the Gujarat plant, the whole business stops.
• Debt is high: for every ₹100 in equity, the company owes ₹202 in loans, which could limit future borrowing or squeeze profits.
• Top 10 customers bring nearly 29% of revenue, so losing a few could hurt sales sharply.
• Finance costs eat up almost 46% of the company's operating profit, making profits fragile if interest rates rise.

For detailed information, visit Amanta Healthcare’s IPO page.

Peer Comparison

As per the RHP, Amanta Healthcare’s listed industry peer is Denis Chem Lab Limited.

• Scale: Amanta Healthcare’s revenue (₹276 crore) is higher than Denis Chem Lab (₹176 crore).
• Profitability: Amanta’s net profit margin is 3.9% (₹3.90 for every ₹100 in sales), lower than Denis Chem Lab’s 4.7%.
• Debt: Amanta’s debt/equity is 2.02, much higher than Denis (0.01). It means the business is running on a lot more borrowed money than Denis or the sector averages, which is a risk for future profits and stability.

Source: RHP

IPO Valuation

At the upper price band, Amanta’s P/E stands at 34, meaning investors pay ₹34 for every ₹1 of earnings. By contrast, Denis Chem Lab trades at a P/E of 15.9, making Amanta seem pricier compared to its main listed peer.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Who’s Leading Amanta Healthcare?

At the wheel is Bhavesh Patel, Chairman & Managing Director, carrying more than three decades of pharmaceutical experience, particularly in IV fluids and pharma formulations. He holds a diploma in mechanical engineering and a management degree, having steered the company through multiple name changes since its 1994 launch, including the earlier Marck Parenterals and Marck Biosciences, signaling adaptive strategy and growth. Patel owns over 21% pre-IPO shares, underlining his skin in the game. Supporting him is CFO Paras Mehta, a qualified CA with deep finance experience from names like Gujarat Ambuja Exports. Company Secretary Nikhita Dinodia, and President of Operations, Anil Rathi, bring rich, relevant backgrounds in pharma and quality. Milcent Appliances Pvt Ltd is a key promoter with roots in manufacturing home appliances, infusing external business perspective. The leadership’s professional longevity lends operating stability, though the promoter group’s diversity occasionally adds complexity. Amanta’s story includes a major financial restructuring, a brief regulatory skirmish, and a journey of evolution, testament to resilience and operational grit, but also a reminder of past hiccups investors should be mindful of.

Industry Outlook

The pharma industry’s sterile liquid products segment, where Amanta operates, is forecast to grow at 9–11% annually, reaching potentially ₹7,000–8,000 crore by 2029. Increasing healthcare spends, population aging, and the rise of chronic diseases propel demand, while hurdles remain from regulatory oversight and price competition. India’s penetration of health insurance is also rising, helping boost patient affordability. The sector’s resilience is strong, but competition is fierce and compliance unforgiving.

Analyst View

Amanta Healthcare’s IPO is clearly riding on strong retail and HNI demand, with Day 2 subscriptions climbing to an impressive 19.63x overall. Retail investors oversubscribed their quota 23.35 times, while non-institutional buyers went 36.41x, signaling heavy participation from individuals and high-net-worth bidders. On the other hand, QIB subscription remains modest at just 0.53x, which shows that institutional investors are yet to meaningfully step in.

What makes this interesting is the contrast with the GMP. From ₹28 before the IPO, it has slipped sharply to ₹12 by Day 2. This cooling of GMP indicates that while demand is buzzing in the formal book, speculative appetite outside is softening. For layman investors, the message is simple - the issue is backed by strong retail enthusiasm, but listing expectations might not be sky-high if GMP remains subdued. It’s an IPO buzzing with activity, but one where valuation and sector concerns may keep big institutions cautious.

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Disclaimer

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