IPO closes on 16 Jul'25
Anthem Biosciences Ltd
Minimum Investment
₹ 14,820 / 26 shares
Grey market premium
₹ 108 (19% premium)
Our Verdict:
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- Anthem Biosciences Ltd has delivered strong growth between FY23–FY25, backed by industry-leading profit margins. In terms of valuation, the IPO commands a P/E multiple of 71x based on FY25 earnings.
- As per Frost & Sullivan, the Indian CRDMO industry is among the fastest-growing globally, projected to grow at a 13.4% CAGR over the next five years—well above the global average of 9.1%. India’s R&D ecosystem, skilled talent pool, IP protection framework and cost advantage make it a preferred destination for global pharma collaborations.
- Additionally, increasing concerns in the West over China’s IP practices and manufacturing dominance strengthen the 'China plus One' narrative, positioning India—and companies like ABL—as key beneficiaries. ABL stands out as one of the few Indian CRDMOs with expertise across both small and large molecule value chains.
- Given these factors, investors may consider subscribing to the IPO from a medium-to-long term perspective.
About the company
Founded in
13 Jun'06
Managing director
Ajay Bhardwaj
- ABL provides end-to-end services across the drug discovery, development and manufacturing lifecycle, catering to both New Chemical Entities (NCEs) and New Biological Entities (NBEs). Its key manufacturing facilities are located in Bommasandra and Horahalli, Bengaluru.
- Majority of ABL’s revenue—approximately 82%—is generated from its CRDMO (Contract Research, Development and Manufacturing Organisation) business. The remaining 18% comes from its specialty ingredients segment, which focuses on fermentation-based APIs such as probiotics, enzymes, peptides and biosimilars.
STRENGTHS
- Diverse Client Base: As of March 31, 2025, ABL served 550+ clients, spanning 44+ countries including the United States, Europe and Japan. According to a Frost & Sullivan Report, ABL had the highest number of clients among its assessed Indian peers as of March 2025.
- Solid Financial Performance: Between FY23 and FY25, ABL delivered strong financial performance with a 32% CAGR in operating revenue, 24% in EBITDA, and 8% in net profit. Notably, the company recorded the highest revenue growth among its assessed peers in India and globally during FY24–25.
- Healthy Return Metrics: ABL showcases strong operational efficiency, with a Return on Equity (RoE) of 21% and Return on Capital Employed (RoCE) of 27% as of FY25.
- Superior Margin Profile: ABL posted an industry-leading EBITDA margin of 37% and a net profit margin of 23% in FY25, outperforming listed peers.
- Strong Industry Tailwinds: India’s CRDMO industry is one of the fastest-growing globally, expected to expand at a CAGR of 13.4% from 2024 to 2029, driven by a skilled talent pool, government support (IP protection and R&D incentives), cost advantages and global supply chain realignment under the "China plus One" strategy and the US Biosecure Act. These trends are likely to benefit established players like ABL.
RISK FACTORS
- Client Concentration: As of FY25, approximately 71% of ABL's revenue is derived from its top five customers. A decline in business from these key customers could negatively impact ABL’s operations and financial performance.
- Contingent Liabilities: As of 31 March 2025, ABL reported contingent liabilities of Rs 213 crore, which, if materialized, could adversely affect its financial position.
- Dependence on Overseas Suppliers: ABL's reliance on overseas suppliers has increased, with procurement from these suppliers rising from 24.6% of total material costs in FY24 to 48.41% in FY25. This is largely due to dependence on a single-source supplier in the People's Republic of China (PRC). Any price hikes or disruptions in supply from these sources could negatively affect ABL’s business and financial health.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 3,395 crore
Fresh Issue
₹ -
OFS
₹ 3,395 crore
Price range
₹ 540 - 570
Lot size
26 shares
Issue Objective
This issue is a pure Offer for Sale (OFS), meaning the company will not receive any proceeds from the issue. The proceeds will go directly to the selling shareholders.
Dates
Bidding open
14 Jul'25
Bidding close
16 Jul'25
Allotment date
17 Jul'25
Refund date
18 Jul'25
Listing
21 Jul'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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