Anlon Healthcare IPO Day 1: Retail Rush, Flat GMP - What Investors Should Know

Anlon Healthcare is testing investor appetite with its ₹121 crore IPO launched on August 26, 2025, and set to close on August 29, 2025. The issue is priced in the ₹86-₹91 band, with a lot size of 164 shares. The company makes pharma intermediates, a space where growth is expected to stay strong, given the expansion of India’s pharmaceutical exports.

On the very first day, the IPO received an overall subscription of 1.69 times, with retail investors leading the show at 8.99 times, while institutional demand was still building. Interestingly, the GMP has held steady at ₹5, reflecting only moderate listing expectations at the moment.

This IPO is attracting attention for its fair valuations and improving fundamentals, but risks like revenue inconsistency, customer concentration, and its relatively small scale cannot be ignored. Through this detailed review, we break down the subscription trend, GMP movement, and the company’s business model, so you can clearly understand both the opportunities and the risks before making an investment decision.

IPO Overview

• IPO Date: August 26 to August 29, 2025
• Total Issue Size: ₹121.03 crore
• Price Band: ₹86 to ₹91 per share
• Lot Size: 164 Shares
• Tentative Allotment Date: September 1, 2025
• Listing Date: September 3, 2025 (Tentative)
• Subscription Status: 1.69x as of day 1.
• GMP: The GMP for Anlon Healthcare IPO is ₹5 (5.49% premium), according to Chittorgarh.com (as of August 28).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 1 of the IPO

On Day 1, Anlon Healthcare IPO got subscribed 1.69 times, driven majorly by retail investors applying at 8.99 times their quota, while institutions stayed cautious (QIBs at 0.91x, NIIs at 0.71x). The GMP remained unchanged at ₹5, indicating only mild listing premium signals. Current subscription data shows strong retail appetite but limited institutional confidence—suggesting the real verdict may emerge closer to Day 3.

How does Anlon Healthcare Make Money?

Anlon Healthcare is a chemical manufacturer for the pharma sector. Think of it as the unseen backbone of drugs you and I consume daily. It doesn’t sell finished medicines in stores, instead, it makes the key ingredients (called APIs and intermediates) that pharmaceutical companies use to create tablets, syrups, capsules, nutraceuticals, skincare products, and even animal health solutions.

On top of that, Anlon does custom chemical manufacturing for specific client requirements and helps pharma firms with regulatory filings to sell internationally. As of March 31, 2025, it had a pipeline of 65 commercial products, 28 at pilot stage, and 49 under lab scale.

Objectives of the IPO

The company plans to use the ₹121 crore raised through IPO towards:

• ₹30.72 crore: Expanding its manufacturing plant capacity (adding 700 MTPA to current 400 MTPA).
• ₹5 crore: Repaying a portion of its secured loans (reducing debt).
• ₹43.15 crore: Boosting working capital for daily operations like raw material purchase and other running costs.
• Remaining funds: General corporate purposes.

Strengths:

• Profits jumped from ₹5.8 crore in FY23 to ₹20.5 crore in FY25 (almost 4x in two years).
• Debt-to-equity dropped from 9x to 0.73x in two years, making the company relatively debt-light.
• 65 products live, and nearly 80 more in the pipeline, signaling a strong innovation runway.
• Top pharma clients conduct regular audits (33 in FY25), and no orders were cancelled, showing strong customer trust.
• Drug Master File (DMF) approvals in markets like Brazil, China, and Japan, opening global export doors.

Risks:

• Sales dropped sharply in FY24 (₹113 crore to ₹67 crore), indicating business lumpy and exposed to disruptions.
• 10 customers bring 77.7% of revenues. Losing one would hurt badly.
• The entire production is from Rajkot facility, any disruption (disaster, compliance issues) can stall operations.
• Needs heavy cash flow support. The working capital cycle is stretched at 308 days, meaning money stays locked in operations too long.
• Near 90% purchases from top 10 suppliers, pricing flexibility low and supply chain vulnerable.

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

Peer Comparison

As per the RHP, Anlon Healthcare’s listed industry peers are Kronox Lab Sciences, AMI Organics, and Supriya Lifesciences.

Anlon is smaller in scale, but operationally efficient with decent margins. The valuation at P/E 14.3x looks attractive compared to peers trading 2x,4x higher multiples.

Source: RHP

IPO Valuation

At the upper price band of ₹91, Anlon’s P/E sits at 14.3x FY25 earnings. Compared to peers like AMI Organics (61.6x) and Supriya Lifesciences (31.1x), this looks undervalued and affordable. However, investors must factor in the small size, concentrated risks, and single-plant dependence before jumping in.

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 Is Behind Anlon Healthcare?

The driving force of Anlon Healthcare is Punitkumar R. Rasadia, the Chairman & MD. With over 11 years in pharma chemicals, he sets strategy, supply chain, and expansion planning. Rasadia’s strength lies in sourcing and scaling niche APIs, he’s led Anlon’s sharp turnaround in profitability.

Alongside him is Meet Atulkumar Vachhani, Executive Director, also with 11+ years of industry experience. His focus has been on operations, finance, and marketing, essentially managing the “growth engine” of the company.

The third promoter, Mamata P. Rasadia, has a technical background in chemistry and pharmacy, adding scientific depth to leadership.

Supporting them is a bench of professionals, CFO Hitesh Bavanjibhai Makwana, industry veterans like Deepak Kumar Chima (30+ years in drug production), and domain experts in quality, compliance, and product development. Collectively, they’ve built a 65-product company with a credible pipeline and operational expertise. Importantly, promoters hold over 70% stake pre-issue, aligning their skin in the game with investors.

Industry Outlook

India’s pharma bulk drugs and API industry is growing steadily, expected to reach ₹7,32,700 crore by FY30, growing at 10% CAGR. Drivers include rising global demand for generics, government’s PLI scheme incentivizing domestic API production, and higher local healthcare consumption due to aging population and insurance penetration.

However, challenges remain: dependency on China for raw materials, pricing pressure from intense competition, and strict regulatory hurdles. For companies like Anlon, niche positioning in select APIs and regulatory approvals abroad open interesting growth avenues despite industry headwinds.

Analyst View

Anlon Healthcare’s IPO is pitching an undervalued entry into the pharma intermediates segment. The company looks fundamentally sound, profit growth, margin improvement, capex-led expansion, and low debt are definite positives. Valuation at around 14.3x earnings also appears reasonable compared to peers. However, the flip side has its own weight, revenue saw a dip in FY24, scale remains small, and the company depends on a limited customer base with just one manufacturing facility. These risks mean volatility can’t be ruled out.

Now, if we bring in the Day 1 subscription picture, demand looks skewed, Retail has shown very strong interest with nearly 9x subscription, while institutional investors (QIBs at 0.91x, NIIs at 0.71x) are still warming up. Overall, the IPO is covered 1.69x on Day 1. The GMP trend is flat at ₹5, which signals only modest listing expectations for now.

In short: The retail frenzy is clear, fundamentals are decent, but muted institutional trust and a stagnant GMP keep the listing outlook cautious. Suitable for long-term believers in pharma with higher risk appetite. For conservative investors, it may be safer to wait until the final day or observe listing momentum.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Anlon Healthcare's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.