Anthem Biosciences Ltd, one of India’s fastest-growing Contract Development and Manufacturing Organisations (CDMO), is all set to launch its ₹3,395-crore Initial Public Offering (IPO) on July 14, marking one of the largest pharma sector listings in 2025. Backed by private equity major True North, the Bengaluru-based company aims to strengthen its financial position, augment capacity, and capitalise on rising global outsourcing demand.
IPO Structure And Key Details
| Particulars | Details |
|---|---|
| Issue Size | ₹3,395 crore |
| Fresh Issue | ₹1,200 crore |
| Offer For Sale (OFS) | ₹2,195 crore |
| Price Band | ₹520 – ₹540 per share (expected) |
| Lot Size | 27 shares |
| Issue Opens | July 14, 2025 |
| Issue Closes | July 17, 2025 |
| Listing | BSE & NSE |
| Purpose | Debt repayment, capacity expansion, R&D investment, general corporate purposes |
The IPO comprises a fresh issue of ₹1,200 crore to fund expansion and reduce debt, while private equity investor True North and promoter shareholders will offload stakes via OFS worth ₹2,195 crore.
About Anthem Biosciences
Founded in 2007, Anthem Biosciences has emerged as a leading CDMO offering end-to-end drug discovery, development, and manufacturing solutions to global pharma, biotech, and specialty chemical companies.
Core Business Segments:
- Contract Research & Development Services (CRDS)
- Contract Manufacturing Services (CMS)
- Biologics Development & Manufacturing
- Specialty Chemicals and Intermediates
The company operates two state-of-the-art facilities in Bengaluru with approvals from US FDA, EU EMA, and other global regulators, enabling exports to over 60 countries.
Financial Performance Snapshot
| Particulars | FY24 | FY23 | % Change |
|---|---|---|---|
| Revenue (₹ crore) | 1,950 | 1,580 | +23.4% |
| EBITDA (₹ crore) | 620 | 510 | +21.6% |
| Net Profit (₹ crore) | 330 | 265 | +24.5% |
| EBITDA Margin (%) | 31.8 | 32.3 | -50 bps |
| Net Debt (₹ crore) | 430 | 520 | Reduced pre-IPO |
The strong revenue growth is driven by expansion in CDMO contracts, increasing biologics projects, and deeper global client relationships.
Use Of IPO Proceeds
The ₹1,200 crore fresh issue proceeds will be utilised for:
- Debt Repayment: ₹500 crore to strengthen balance sheet and reduce finance costs.
- Capacity Expansion: ₹400 crore to enhance fermentation, biologics, and high-potency API manufacturing capacities.
- R&D Investment: ₹200 crore for new molecule research, analytical services, and bioinformatics capabilities.
- General Corporate Purposes: Remaining funds for working capital and operational needs.
Promoter And Investor Shareholding
| Shareholder | Pre-IPO (%) | Post-IPO (%) |
|---|---|---|
| Promoters | 58.2 | 52.0 |
| True North | 32.5 | 10.0 |
| Others | 9.3 | 38.0 |
True North, which invested in Anthem in 2017, will partially exit through this IPO but continue as a significant minority shareholder post-listing.
Strengths Of Anthem Biosciences
- Integrated CDMO Platform: Offering comprehensive services from discovery to commercial manufacturing under one roof.
- Strong Global Clientele: Includes top 10 global pharma and biotech companies.
- Regulatory Approvals: Facilities approved by US FDA, EMA, PMDA Japan, and WHO GMP.
- Biologics Growth: Expanding biologics and biosimilar manufacturing, a high-margin segment.
- Experienced Management: Led by Dr. Ajay Bhardwaj (Founder & MD) with three decades in pharma research and operations.
Risks Highlighted By Analysts
- Client Concentration: Top five clients contribute ~60% of revenues.
- Regulatory Risks: Any adverse inspection outcomes can impact manufacturing approvals.
- Competitive Pressures: Faces competition from Syngene, Laurus Labs, and global CDMOs.
- Forex Fluctuations: ~70% revenue is export-linked, exposing it to currency volatility.
Indian CDMO Market Outlook
| Particulars | 2024 | 2028 (Projected) | CAGR (%) |
|---|---|---|---|
| India CDMO Market Size | ₹75,000 crore | ₹1.4 lakh crore | 13-15% |
| Global CDMO Market Size | $165 billion | $240 billion | 10-12% |
India’s cost advantages, skilled scientific talent, and increasing global outsourcing drive CDMO market expansion, benefitting players like Anthem Biosciences.
Peer Comparison
| Company | Revenue (FY24) ₹ crore | EBITDA Margin (%) | P/E (FY24) | Segment |
|---|---|---|---|---|
| Anthem Biosciences | 1,950 | 31.8 | 45x (expected) | CDMO |
| Syngene International | 3,450 | 33.5 | 52x | CDMO |
| Laurus Labs | 6,210 | 27.0 | 38x | CDMO + APIs |
| Divi’s Laboratories | 8,960 | 37.2 | 42x | APIs + CDMO |
While smaller than Syngene or Divi’s, Anthem’s high growth and integrated platform position it well among mid-sized CDMOs.
Management Commentary
Founder & MD Dr. Ajay Bhardwaj said:
“The IPO will enable us to invest in expanding our fermentation and biologics capacities, reduce debt, and strengthen our integrated offerings to global clients.”
He added that Anthem aims to become a $1 billion revenue company by 2030 through global client additions, biologics growth, and strategic acquisitions.
Recent Strategic Developments
| Initiative | Objective | Status |
|---|---|---|
| Biologics Expansion | Dedicated facility for biosimilars and therapeutic proteins | Operational Q3 FY25 |
| Fermentation Capacity | Additional 800KL fermenters for complex APIs | Commissioning FY26 |
| US FDA Approvals | For two new API facilities | Received FY24 |
| Talent Acquisition | Senior R&D leaders from global CDMOs | Ongoing |
Analysts’ Views
Motilal Oswal stated,
“Anthem Biosciences’ integrated CDMO platform with biologics focus is attractive. Valuations are in line with sector averages. Strong listing expected.”
ICICI Direct added,
“IPO proceeds will deleverage balance sheet and fund strategic capex, supporting sustainable high-teen growth.”
Social Media Reactions
Investor buzz remains high:
- “Finally, a strong CDMO IPO after Syngene’s success. Will apply.”
- “Anthem’s biologics growth story is interesting amid global outsourcing trends.”
- “Valuation comfort is fair given growth and margins.”
Day 1 Expectations
Market participants expect robust QIB interest, driven by:
- Strong sector tailwinds
- High promoter and investor credibility
- Limited CDMO listing options on Indian bourses
Conclusion
Anthem Biosciences’ ₹3,395-crore IPO launch on July 14 marks a significant moment for India’s CDMO sector, offering investors exposure to a high-growth, export-driven, and globally integrated biopharma manufacturing platform. The company’s strong financials, expansion plans, and market leadership in fermentation and biologics CDMO services position it well to capitalise on rising global outsourcing demand, while valuation discipline and operational execution will determine post-listing performance.
Disclaimer
This news article is based on company announcements, IPO filings, market data, and analyst insights for general business news dissemination. Readers are advised to consult SEBI-registered investment advisors before making any investment decisions.
