Anthem Biosciences, funded by Faering, experiences a 28% increase in value on its initial listing day
Anthem Biosciences, a prominent player in the Contract Research Organisation (CRO) and Contract Development and Manufacturing Organisation (CRDMO) space, recently conducted an Initial Public Offering (IPO) that garnered significant attention from investors.
## Key Investors
The company received substantial investment from anchor investors such as Abu Dhabi Investment Authority, Norway's Norges Bank, France's Societe Generale, HDFC Mutual Fund, and ICICI Prudential AMC. These investors collectively contributed Rs 1,016 crore before the public offering. The IPO was entirely an offer for sale, meaning the proceeds went to the existing shareholders, including these anchor investors and other selling shareholders.
## Performance During IPO
The IPO was oversubscribed, with overall subscription reaching about 63.86 times (or 67.42 times as per some reports), indicating strong demand across all investor categories. Shares debuted with a robust listing premium of approximately 26.84%, opening at Rs 723 compared to the issue price of Rs 570. By the end of the first trading day, shares surged further to Rs 746.70, representing a gain of about 3.3% during intraday trading. Investors who participated in the IPO saw overall gains of around 31% post-listing, highlighting the positive reception of the company's stock.
## Financial Performance
Anthem Biosciences, founded in 2007 by Ajay Bhardwaj, KC Ravindra, and Ganesh Sambasivam, has shown steady growth in its financials. In FY25, the company recorded a 30% jump in revenue to Rs 1,844.5 crore. Net profit for Anthem rose to Rs 451.3 crore from Rs 367.3 crore for FY24. The company operates two manufacturing plants near Bengaluru and commands a market value of Rs 41,017 crore at the closing price. In US dollars, the market value of Anthem Biosciences is equivalent to $4.75 billion.
True North and Faering, former Biocon executives who founded Anthem Biosciences, sold more than double their initial investment in the company during the IPO. Their special purpose vehicle had initially invested Rs 620 crore ($85 million) for an 8.33% stake in Anthem in April 2021, when the company was valued at $1 billion, or around Rs 7,500 crore.
In conclusion, the strong fundamentals and sector growth prospects of Anthem Biosciences continue to support investor confidence. The company's successful IPO and subsequent stock market performance have positively impacted key investors, including True North and Faering, and have demonstrated the potential for continued growth in the CRO and CRDMO sectors.
- Key investors in Anthem Biosciences, such as Abu Dhabi Investment Authority, Norway's Norges Bank, France's Societe Generale, HDFC Mutual Fund, and ICICI Prudential AMC, show a keen interest in the fields of technology, business, and finance, as evidenced by their investment in this prominent CRO and CRDMO company.
- The financial performance of Anthem Biosciences, with a significant increase in revenue and net profit, demonstrates the potential for growth and investment opportunities not only in the biotechnology sector, but also in investing, finance, and related technological businesses.
