Anthem Biosciences lists at 27% premium; should you book profit or hold?

Business Standard

5 days ago

Anthem Biosciences IPO listing, Anthem Biosciences share price: Shares of innovation-driven and technology-focused company Anthem Biosciences made a solid D-Street debut on Monday, July 21, following the completion of its initial public offering (IPO). The company's shares listed at ₹723.10 per share on the BSE, reflecting a premium of ₹153.10 or 26.86 per cent over the issue price of ₹570 per share.
On the National Stock Exchange (NSE), Anthem Biosciences shares listed at a mildly lower premium of ₹153.05 or 26.85 per cent at ₹723.05 per share over the issue price.
Anthem Biosciences IPO listing came below the grey market estimate. Ahead of their debut on the bourses, the unlisted shares of Anthem Biosciences were exchanging hands at around ₹749 per share, reflecting a grey market premium (GMP) of ₹179 per share or nearly 31.40 per cent over the issue price of ₹570 per share, showed the sources that track unofficial market activities.
Should you book profit or hold?
The listing of the company's shares, Prashanth Tapse, senior VP (research), Mehta Equities, said was broadly in line with expectations. While post-listing valuations may appear premium, Tapse believes these are justified by the company's strong fundamentals, differentiated capabilities, and the sector's long-term growth visibility.
"The ability to consistently deliver earnings growth, in line with street expectations, further supports its valuation," said Tapse, and recommended investors to 'hold' Anthem Biosciences for a long-term perspective.
"For long-term investors, Anthem offers a strong structural story in a booming Indian CRDMO segment, justifying the listing. Short term, we foresee ₹900 as a target, while long-term investors can hold it for ₹1,000 and above. Non-allottees should wait for some volatility to settle in price, and in any case, if the stock is available around ₹650–680, it can be considered a good range to accumulate with a long-term vision," said Tapse.
Shivani Nyati, head of wealth at Swastika Investmart, on the other hand, recommended investors to secure partial profits. "The company is one of the leading global players in the CRDMO segment and enjoys a niche position, leading the pack of players. The company has shown steady growth in its top line during the reported periods," said Nyati.
She further recommended the investors to retain the remaining stake with a stop-loss set at ₹650.
Anthem Biosciences IPO details
Anthem Biosciences IPO comprised entirely an offer-for-sale (OFS) with promoters and shareholders divesting up to 59.6 million equity shares estimated to be worth ₹3,395 crore. The public issue was offered at a price band of ₹540–570 with a lot size of 26 shares, and was open for subscription from July 14, 2025, till July 16, 2025.
Anthem Biosciences received strong demand from investors for its public issue as it got oversubscribed by 63.86 times. The demand was led by the qualified institutional buyers (QIBs), who bid for 182.65 times the category reserved for them, showed the NSE data.
Anthem Biosciences, as outlined in its red herring prospectus (RHP), will not use any proceeds from the public issue, and it will be given to the promoters and shareholders selling their stakes through the OFS.
About Anthem Biosciences
Incorporated in 2006, Anthem Biosciences is a contract research, development, and manufacturing organisation (CRDMO) serving global customers. The company manufactures specialised fermentation-based APIs, including probiotics and enzymes. Anthem Biosciences has a diverse customer base, including biotech firms and large pharmaceutical companies, spanning over 44 countries. As of September 2024, the company had 196 projects and over 425 customers in its CRDMO business. The company holds one patent in India and seven overseas, with 24 pending global patent applications.