Anthem Biosciences Shares Leap on Market Debut

Anthem Biosciences shares experienced a notable 3.3% increase, reaching Rs 746.70 during Monday's intraday trading on BSE, following a strong debut that saw a 27% premium over its IPO price.

Investors who participated in the IPO are now enjoying gains of approximately 31%, as reported by ET. The stock's market entry was marked by a robust listing premium of 26.84%, opening at Rs 723 against an issue price of Rs 570.

Overwhelming Response to the IPO

The IPO was met with an extraordinary response, being oversubscribed 67.42 times across all investor categories. The offering was entirely an offer for sale, with proceeds benefiting existing shareholders. Anchor investors had already contributed Rs 1,016 crore prior to the public offering.

Investment Advice from Experts

Prashanth Tapse, Senior VP (Research) at Mehta Equities, shared with ET that despite the post-listing valuations appearing premium, they are justified by Anthem Biosciences' strong fundamentals and the sector's promising growth outlook. He recommends a "HOLD" strategy for long-term investors, highlighting the company's potential in the booming Indian CRDMO segment.

The analysis suggests a short-term target of Rs 900, with long-term prospects potentially reaching Rs 1,000 and beyond. For those who missed the IPO, waiting for price stabilization is advised.

Company Background and Financial Performance

Established in 2006, Anthem Biosciences operates across drug discovery, development, and commercial manufacturing for small molecules and biologics. The company reported a 30% revenue growth to Rs 1,930 crore and a 23% profit increase to Rs 451 crore in FY25, with EBITDA at Rs 684 crore and a 37% margin, maintaining minimal debt levels.

Disclaimer: The recommendations and views on the stock market and other asset classes provided by experts are their own and do not represent the views of The Times of India.