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 the bidding period. This strong response from investors highlights confidence in the company’s growth potential as global pharmaceutical companies increasingly look 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 concluded on Wednesday, with Anthem shares expected to start trading on July 21.
This surge in interest comes as global drugmakers seek to diversify their supply chains and limit dependence on Chinese contractors, who are responsible for producing drugs used in clinical trials and early-stage manufacturing. Anthem Biosciences, which operates two manufacturing facilities in Bengaluru, offers services in early-stage drug discovery, drug efficacy testing, and the production of active pharmaceutical ingredients, dietary supplements, and probiotics.
The company’s expansion is progressing well, and it is positioned to handle new orders effectively. With a robust drug pipeline, Anthem has generated positive sentiment among investors. Arun Kejriwal, founder of Kejriwal Research and Investment Services, noted that the company is well-suited to meet growing demand.
“Moreover, the China factor is ‘icing on the cake’ as the company is in a beneficial spot when global pharma firms are looking to move away from China,” Kejriwal added.
Indian firms are anticipated to raise $2.4 billion through IPOs in July, signaling a potential revival in primary offerings after market volatility caused by global trade and geopolitical tensions earlier in the year.
The recovery in the IPO market follows a strong performance in the secondary market over the past four months, with benchmark indexes approaching their record highs.
In the Anthem IPO, the company did not issue any new shares. Instead, existing investors, including private equity firm True North and drugmaker DavosPharma, sold portions of their stakes within the price range of 540 rupees to 570 rupees.
This successful IPO reflects growing investor confidence in India’s pharmaceutical sector and its role in the global healthcare industry. As more international firms look to diversify their supply chains, Indian companies like Anthem Biosciences are well-positioned to capitalize on this trend.
