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Anthem Biosciences’ $395M IPO Fully Subscribed on Investor Bet for Indian Pharma

Anthem Biosciences’ 5M IPO Fully Subscribed on Investor Bet for Indian Pharma

Indian Drugmaker’s IPO Attracts Strong Investor Interest

An Indian drugmaker, Anthem Biosciences, saw its $395 million initial public offering (IPO) fully subscribed within just two days of bidding. This strong investor response highlights confidence in the company’s growth potential as global pharmaceutical companies increasingly turn to India to reduce their reliance on Chinese suppliers.

The IPO received bids for 1.6 times the number of shares available, according to exchange data. The demand was primarily driven by non-institutional investors, who purchased 4.3 times the shares allocated to them. The three-day share sale is set to conclude on Wednesday, with Anthem shares expected to start trading on July 21.

Strategic Positioning in a Changing Market

Global pharmaceutical companies are looking to diversify their supply chains and reduce dependence on Chinese contractors, which are responsible for producing drugs used in clinical trials and early-stage manufacturing. Anthem Biosciences, based in Bengaluru, offers early-stage drug discovery and drug efficacy testing services. The company also produces active pharmaceutical ingredients, which are essential components of medications, along with dietary supplements and probiotics.

This strategic positioning has placed Anthem in a favorable position as the industry shifts focus toward alternative manufacturing hubs. Arun Kejriwal, founder of Kejriwal Research and Investment Services, noted that Anthem’s expansion is progressing well and that the company is well-equipped to handle new orders. He emphasized that the company’s strong drug pipeline has significantly contributed to investor confidence.

Kejriwal added that the “China factor” is an additional advantage for Anthem, as it benefits from the global pharma industry’s move away from China. This shift is creating opportunities for Indian firms like Anthem to play a more prominent role in the global pharmaceutical supply chain.

Rising Hopes for IPO Market Recovery

India’s IPO market is showing signs of recovery after facing challenges earlier in the year due to global trade tensions and geopolitical uncertainties. Analysts expect Indian firms to raise $2.4 billion through IPOs in July, signaling a potential revival in primary market activity.

This recovery follows a period of strong performance in the secondary market over the past four months, with benchmark indices approaching record highs. The positive momentum in the stock market has created a favorable environment for companies seeking to raise capital through IPOs.

Key Players in the Anthem IPO

In the Anthem IPO, the company did not issue any new shares. Instead, existing shareholders, including private equity firm True North and drugmaker DavosPharma, sold part of their stakes. The shares were offered at a price range of 540 rupees to 570 rupees.

This transaction reflects the confidence of major stakeholders in Anthem’s long-term prospects. The company’s ability to attract significant interest in its IPO underscores its growing reputation in the pharmaceutical sector and its potential to benefit from the ongoing global shift in drug manufacturing.

As the IPO process concludes, investors will be closely watching Anthem’s performance once it begins trading. With its strong fundamentals and strategic positioning, the company is well-placed to capitalize on emerging opportunities in the global pharmaceutical market.