Is Anthem Biosciences IPO a risky bet for investors?
Live Events
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
ET Intelligence Group: Anthem Biosciences, a contract research, development and manufacturing organisation (CRDMO), plans to raise ₹3,395 crore through an offer for sale. The promoter group's stake will fall to 74.7% from 76.9% after the initial public offering (IPO).The company's revenue and profit have shown improvement over the last two years. However, over 55% of its revenue comes from Europe, while its top-five customers contributed about 71% to revenue from operations in FY25, signalling geographical and client concentration. Also, inventory days, which shows the time taken to sell the products, are higher compared with some of its peers. Considering these factors, investors with high-risk appetite may consider the IPO.Incorporated in 2006, Bengaluru-headquartered Anthem Biosciences undertakes drug discovery, development and manufacturing.About 82% of its revenue is from CRDMO business and the rest from specialty ingredients. As of FY25, it had 242 projects with 68 discovery projects, 145 early-phase projects, 16 late-phase projects, and 13 commercial manufacturing projects. The company held one patent in India, seven overseas, and has filed 17 patent applications globally.Anthem ' revenue from operations and net profit grew by 32.1% and 8.2% annually to ₹1,844.6 crore and ₹451.3 crore, respectively, between FY23 and FY25. Similarly, earnings before interest, taxes, depreciation and amortisation (Ebitda) grew by 23.8% to ₹683.8 crore. The Ebitda margin declined to 36.8% in FY25 from 41.5% in FY23, but still, it is better than the 23.9-31.7% for its peers. Research and development expenses as a percentage of revenue declined to 10.6% in FY25 from 24.5% in FY23. Net working capital days, though high, declined to 222 days in FY25 from 242 days in FY23, while inventory days jumped to 135 days from 98 days.Considering the post-IPO equity and net profit for FY25, the company demands a price-earnings (P/E) multiple of up to 71 compared with P/Es between 51 and 147 for peers, including Syngene International, Sai Life Sciences, Cohance Lifesciences and Divi's Laboratories.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Graviss chairman moves high court over family settlement feud
Mumbai: Gaurav Ghai , chairman of Graviss Group , which owns and operates the Baskin-Robbins brand in the SAARC region, has approached the Bombay High Court against his father, Ravi Ghai , seeking the court's intervention to appoint an arbitrator for settling a dispute over a family settlement agreement ( FSA ). Justice Somasekhar Sundaresan, in his July 15 order, directed Gaurav Ghai to issue notices to all the parties, and posted the matter for further hearing on August 5. Explore courses from Top Institutes in Select a Course Category Others Data Science Product Management Operations Management Degree MCA CXO others PGDM Management Finance Design Thinking Public Policy Technology Digital Marketing Artificial Intelligence Project Management Leadership Healthcare Data Science Data Analytics healthcare Cybersecurity MBA Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details Mumbai-headquartered Graviss Group also has interests in real estate and the hospitality business. However, the dispute is only around the group's listed entity, Graviss Hospitality (GHL), which owns a boutique luxury hotel, InterContinental Marine Drive. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 20 Things Women Should NEVER Wear! Undo "The value of the promoter shares requested by my father in 2021 to be retained in his name, although the beneficial interest in these had passed to me, was a mere ₹25 crore. Over the years, the value of shares has gone up to ₹100 crore. Owing to the rise in value of shares placed under hold/freeze in my favour, he is doing everything to unlock, sell, and monetise his shares in GHL," said Gaurav Ghai when contacted. "The company contributes very minuscule amounts in terms of revenue, but for me, this company has sentimental value since it carries my grandfather's legacy," he added. The genesis of the dispute lies in the family settlement agreement (FSA) of 2021, between Ravi Ghai, his wife Geeta Ghai, and son Gaurav Ghai. According to the agreement, a copy of which was reviewed by ET, Gaurav Ghai would have complete control over the family business, and in lieu of that, his father Ravi Ghai would receive ₹235 crore. Live Events At the time of executing the agreement, Ravi Ghai intended to retain 51% of the shares in GHL during his lifetime. GHL contributes about 10% to the overall revenue of the Graviss Group. In August 2023, the family members entered into a supplemental FSA, under which Ravi Ghai agreed not to sell, encumber, assign, transfer, or create any third-party rights of any nature whatsoever on the 51% of promoter shareholding in GHL. The agreement also stated that Ravi Ghai would bequeath the 51% shareholding controlled by him in GHL to his son Gaurav, post his lifetime. Also, these shares were put under "hold/freeze", according to GHL's stock exchange filing. When contacted, Ravi Ghai denied the existence and validity of any supplemental FSA. "I have never signed, consented to, or authorised anyone to execute such a document on my behalf," said Ravi Ghai, in response to ET's email query.
News18
8 hours ago
- News18
Brigade Hotel Ventures Rs 750-cr IPO to open on Jul 24
New Delhi, Jul 20 (PTI) Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, is set to launch its Rs 749.6-crore initial public offering (IPO) on July 24. The IPO is scheduled to close on July 28, and the one-day bidding for the anchor investor will open on July 23, according to the red herring prospectus (RHP). Brigade Hotel Ventures' IPO is entirely a fresh issue of equity shares with no offer-for-sale (OFS) component. Of the total issue proceeds, Rs 468.14 crore will be used for debt payment, Rs 107.52 crore will be utilised for the purchase of an undivided share of land from the promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes. Earlier this month, Brigade Hotel Ventures raised Rs 126 crore by selling equity shares to 360 ONE Alternates Asset Management. Brigade Hotel Ventures Ltd is a subsidiary of Bengaluru-based real estate company Brigade Enterprises Ltd (BEL). BEL entered into the hospitality business in 2004 with the development of its first hotel, Grand Mercure Bangalore, which commenced operations in 2009. The company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and GIFT City (Gujarat) with 1,604 keys. These hotels are operated by global marquee hospitality companies, such as Marriott, Accor and InterContinental Hotels Group. JM Financial and ICICI Securities are the book-running lead managers to the issue. Shares of the company are expected to list on the bourses on July 31. PTI SP BAL BAL (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 20, 2025, 17:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
8 hours ago
- Economic Times
Anthem Biosciences IPO: What GMP signals ahead of listing on Monday
Anthem Biosciences is set to debut on the stock exchanges on Monday, July 21. In the unlisted market, its shares are trading at a premium of Rs 165–170, indicating a potential listing gain of around 29% over the IPO price of Rs 570 (upper band). ADVERTISEMENT While the grey market premium (GMP) reflects strong investor interest, it remains a speculative indicator and can change quickly before listing. The Rs 3,395 crore IPO was entirely an offer for sale (OFS) and closed on July 16. It witnessed robust demand, with an overall subscription of 67.42 times. The Qualified Institutional Buyers (QIB) segment was subscribed 192.80 times, Non-Institutional Investors (NII) 44.70 times, and the retail portion 5.98 times. The issue was priced in a band of Rs 540–570 per share, with a minimum lot size of 26 shares. The stock will list on both NSE and BSE. Founded in 2006, Anthem Biosciences operates in a niche segment of the pharma value chain, offering end-to-end drug discovery, development, and manufacturing services. It is among the few Indian CRDMOs with integrated capabilities across both small molecules (chemical-based) and large molecules (biologics).Its differentiated fee-for-service (FFS) model has enabled it to cater to small and mid-sized biotech firms globally, which constitute a large portion of its client base. Since its inception, the company has served over 675 clients and completed more than 8,000 projects. ADVERTISEMENT In FY25, Anthem reported strong financials, with an EBITDA margin of 36.8% and a Return on Net Worth (RoNW) of 20.8%. As of March 2025, the company's net worth stood at Rs 2,410 facilities are cGMP-compliant and approved by global regulatory bodies such as the USFDA, ANVISA, TGA, and PMDA. The company is currently expanding its fermentation and synthesis capacities to meet growing demand for complex biologics and specialty ingredients. ADVERTISEMENT JM Financial is the book-running lead manager of the Anthem Biosciences IPO, while Kfin Technologies is the registrar for the issue. (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
