Anthem Biosciences IPO: Invest or Avoid? Check GMP, Subscription Status

Anthem Biosciences is hitting the public markets with an Offer for Sale (OFS) worth up to ₹3,395 crore, at a time when the 'behind-the-scenes' work of making medicines has never been more crucial. As global pharma giants and biotech startups increasingly outsource their complex research and manufacturing, this IPO offers investors a rare chance to own a piece of a highly profitable, market-leading 'pharma helper'.

The initial response on Day 1 has been moderate. As of 6 PM, July 14, 2025, the IPO has been subscribed 0.73 times (73%). Meanwhile, the Grey Market Premium (GMP) remains strong at ₹112, signaling a potential listing premium of 19.65% over the upper price band of ₹570.

In this blog, we break down everything an investor needs to know, from what Anthem Biosciences does and how it makes money to its stellar financial performance, competitive standing, valuation insights, and key strengths and risks. Additionally, you’ll also find a comparison with its peers and analyst view to help you make an informed investment decision.

IPO Overview

• IPO Date: July 14 to July 16, 2025
• Total Issue Size: ₹3,395 crore
• Price Band: ₹540 – ₹570 per share
• Lot Size: 26 shares per lot
• Tentative Allotment Date: July 17, 2025
• Listing Date: July 21, 2025 (Tentative)
• Subscription Status: As of July 14, 2025, 6 PM, the IPO has been subscribed by 0.73 times or 73%.
• GMP: The Anthem Biosciences IPO GMP (Grey Market Premium) is ₹112 as of July 14, 2025, 6 PM, as per Chittorgarh.com. As per this GMP, the company’s share may get listed at ₹682 with a premium of 19.65%. Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Note: This blog is regularly updated with the latest subscription and GMP data to help you make timely, informed decisions.

What Does Anthem Biosciences Actually Do?

As per its RHP, Anthem Biosciences, founded in 2006, is a science-led company that helps pharma and biotech firms with the full drug-making process, from research and testing to large-scale production. This is called the CRDMO (Contract Research, Development, and Manufacturing Organization) model, and Anthem is one of the few Indian companies offering both chemical and biological services under one roof.

Over 80% of its revenue comes from these CRDMO services. The rest comes from making special ingredients like enzymes, probiotics, and fermentation-based products used in health and wellness.

It works with small to mid-sized global pharma clients and has completed 8,000+ projects across 675+ customers. Most of its business comes from Europe and North America. Anthem has strong expertise in advanced therapies like peptides, lipids, RNAi, and ADCs, and is expanding its fermentation capacity to support future growth.

Where's the Money Going from This IPO?

The Anthem Biosciences IPO is a complete Offer for Sale (OFS).

Think of it like this: you are selling your old bike to a friend. The money your friend gives you goes into your pocket, not to the bike company that originally made it. Similarly, in this IPO, the company itself isn't raising any money for its growth. The entire ₹3,395 crore will go to the original owners and early investors who are selling their shares.

What are its Strengths?

Anthem Biosciences stands out as the only Indian CRDMO with strong capabilities in both small and large molecule drugs, offering end-to-end services from discovery to manufacturing.

It delivered the highest revenue growth (29.96%) in FY25 among peers, with a top-tier EBITDA margin of 36.81% and strong return ratios, 20.82% ROE and 26.88% ROCE. The company also leads in fermentation capacity at 142 kL, over six times larger than the next Indian competitor, and plans to expand to 182 kL by mid-FY26. Its specialty ingredients segment added 18.35% of revenue in FY25.

With advanced tech expertise in RNAi, ADCs, and peptides, and a skilled team of over 1,000 scientists, Anthem is well-positioned for future growth. These numbers reflect a financially strong, innovation-driven company that’s helping global pharma firms bring new medicines to life.

What are the Risks?

Anthem Biosciences faces a few key risks investors should know. In FY25, over 70% of its revenue came from just five customers, meaning losing even one could hurt its business. The company operates in a highly competitive market with 1,000+ global players, which could affect pricing power.

Additionally, Anthem’s long cash cycle is a concern: it takes more time to get paid and manage inventory compared to peers like Syngene or Sai Life. Its Net Working Capital Days stood at 222 in FY25, far higher than Syngene’s 34, which means more money is tied up and less is available for day-to-day needs or growth.

For a complete breakdown of financials and shareholding, see our main Anthem Biosciences IPO page.

Competitor Comparison

Revenue Growth (Year-on-Year): Anthem Biosciences is growing faster than almost everyone else in its space. From FY24 to FY25, its revenue grew by 29.96%, the highest among both Indian and global listed peers. Over the last five years (FY20–FY25), Anthem’s average yearly growth (CAGR) was 24.8%, also the best among Indian players.

EBITDA Margin: In FY25, Anthem posted an EBITDA margin of 36.81%, which means it earned ₹36.81 as operating profit for every ₹100 of revenue. This was better than other Indian peers like Syngene International (28.60%), Sai Life Sciences (23.94%), Cohance Lifesciences (31.33%), and Divi's Laboratories (31.71%).

Return on Equity (ROE): Anthem’s Return on Equity (ROE) was 20.82% in FY25 — the highest among Indian peers, beating Syngene (11.05%), Sai Life Sciences (10.96%), Cohance Lifesciences (13.61%), and Divi’s (15.35%). In simple terms, for every ₹100 of shareholder money invested, Anthem generated ₹20.82 in profit.

The Price Tag: Is the IPO Too Expensive?

At the upper price band of ₹570, Anthem Biosciences is valued at around ₹31,800 crore. With a net profit of ₹451 crore in FY25, this gives the IPO a Price-to-Earnings (P/E) ratio of approximately 70.5 times.

In simple terms, this means investors are paying ₹70.5 for every ₹1 the company earned in profit last year; they’re betting that future profits will rise quickly. Compared to other listed peers, this valuation is on the higher side. Divi’s Labs trades at around 45–50x earnings, while Syngene is closer to 60x. So yes, the IPO looks expensive at first glance. But Anthem is also growing faster, with stronger profit margins and industry-best return ratios like 20.82% ROE and 26.88% ROCE. Investors are not just paying for what the company is today, but what it could become in the next few years.

If you're a long-term investor willing to pay a premium for high-quality growth, the valuation might still make sense, but it does come with the expectation of consistent performance.

Industry Outlook

India’s CRDMO (Contract Research, Development, and Manufacturing Organization) industry is part of a booming global sector that supports pharma and biotech companies in discovering, developing, and manufacturing drugs. Instead of investing heavily in labs and factories, many smaller firms now outsource these complex tasks to CRDMOs. Globally, the CRDMO market is expected to grow from $213.1 billion in 2024 to $330 billion by 2029. India’s share is also growing, with the domestic CRDMO market projected to touch $15.4 billion by 2029.

Growth Drivers

• Pharma Industry Boom: As the global pharma market grows at 6.4% CAGR, reaching $2,076 billion by 2029, the need for outsourced R&D and manufacturing services is rising fast.
• Rise of Smaller Biotech Firms: Emerging pharma and biotech companies—who often lack in-house capabilities—are expected to grow at 8.5% CAGR, much faster than big pharma players (4.9% CAGR). These firms heavily depend on CRDMOs to get their drugs to market.
• Surge in Complex Biologics: New-age treatments like RNA-based drugs, Antibody-Drug Conjugates (ADCs), and biologics need advanced technology and know-how. The large molecule CRDMO segment (which includes biologics) is set to grow at 12.5% CAGR, faster than traditional small molecules.

Challenges

• Heavy Competition: With over 1,000–1,500 global CRDMOs, the market is crowded. Intense competition can lead to pricing pressure, hurting profit margins.
• Constant Tech Investment Needed: Developing a new drug now costs over $1 billion. CRDMOs must invest regularly in new labs, tools, and platforms to stay relevant. Falling behind can mean losing big clients.
• Talent Shortage: These companies rely on skilled scientists, technicians, and PhDs. But there’s a shortage of qualified talent, which can delay projects and affect service quality.

Analyst View

Anthem Biosciences stands out in the pharma services space because it’s one of the few Indian companies offering a complete package, helping clients from drug discovery to large-scale production. Its business is growing fast (30.5% revenue CAGR over 3 years), highly profitable (36.81% EBITDA margin), and efficient (highest ROE and ROCE among Indian peers). It has over 1,000 scientists and a leadership team with 25+ years’ experience, giving it solid scientific depth.

The company’s strong client relationships (12-year average with top 10 clients) and focus on high-growth areas like biologics, fermentation, and probiotics make it well-positioned for the future. Plus, it’s exporting to over 44 countries and has a large share of revenue from Europe and the US, reducing reliance on the Indian market.

However, there are some risks. Over 70% of revenue comes from just 5 clients. It also takes longer to get paid compared to peers, which can slow down operations. And this IPO is a complete Offer for Sale (OFS), so the company won’t receive any funds to grow its business directly.

Final Verdict: The initial Day 1 response gives us a mixed but interesting signal. The subscription of 0.73 times shows a cautious and steady start, suggesting that while investors appreciate the company's quality, they are also mindful of the high valuation. In contrast, the strong Grey Market Premium (GMP) of ₹112 indicates robust demand and high expectations for listing gains in the unofficial market.

Our core view remains unchanged: this IPO is attractive for long-term investors with a moderate risk appetite. The company's fundamentals are excellent, but the risks of customer concentration and the OFS nature are real. Given the strong GMP, there appears to be potential for listing day gains, but the moderate subscription suggests that a clearer picture of institutional demand will emerge on Day 2 and Day 3. If you believe in the long-term biotech story and are comfortable with the premium price tag, Anthem could be a worthy addition to your portfolio.

Also Read: Smartworks Coworking IPO: Last Day to Apply, Should You Invest?

Other Upcoming IPOs to Watch

Curious about what’s next in the IPO pipeline? Here are some much-awaited companies that could launch their IPOs soon.

Note: These companies are either in the DRHP stage or expected to file soon.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC to open an account.
2. Go to the INDstocks section and tap on IPO, or search for ‘IPO’.
3. Select your preferred IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates, then tap ‘Apply Now’.
5. Choose the number of lots and place your order via UPI. Your funds will be blocked until the share allotment is finalized.

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

Disclaimer

Source: Anthem Biosciences' 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.