Current IPO Market Scenario: Why Anthem Stands Out:-
Where there is a drought of good IPOs in the market right now. In such a situation, Anthem Biosense IPO can make you huge profits. Recently investors benefited from HDB’s IPO. Also, very few people benefited from CRISK because its issue size was very small. But if we about Anthem Biosciences, its issue size is more than Rs 3000 crore. Meaning this is an IPO of approximately ₹3400 crores. Meaning, the chances of allotment are quite high here. If we look at its grey market premium, we are continuously seeing an increase in the grey market premium.
As the number of people is increasing near the IPO, its GMP i.e. Grey Market Premium is also increasing in the market. Along with this, we will analyze its valuation and whether it should be applied or not? Is this an opportunity or a fraud? The issue size of the IPO in every IPO because it is very important. The bigger the issue size of the IPO, the greater are the chances of getting allotment in the IPO this is the issue size of ₹395 crores. But the sad thing is that this IPO is an OFS. Offer is for sale. Look, whenever there is an IPO fresh issue or an offer for sale, we have to go back and find out why they are doing OFS or why they are doing a fresh issue? Like when someone does a fresh issue of IPO, then we find out what are the reasons behind it. Where will the company use this money that is coming to it ?
IPO Basics: Key Dates and Offer Details:-
Similarly, if there is an OFS, then we have to find out why they are doing this OFS? The simple reason for their doing OFS is that they do not need the money. The company has enough money. The debt to equity ratio of the company is very strong. They don’t need any money. That’s why brother we are offering this for sale. Meaning, the company people are looking to book their profits somewhere. Is it that clear? Let’s move ahead now. What is the actual business of the rest of the company? Before understanding that, let us take all the basic instructions of our IPO. First of all, this IPO is going to open in the market on 14th July where you can apply till 16th July. Meaning the IPO is going to be open in the market from 14th to 16th July. About the basis of the rest of the allotment, the allotment basis is going to be cleared the very next day on 17th July. Then if we about listing, it will be listed on Monday. Your date comes on Monday, 21st July. If you make profit here on 21st July after allotment, you can easily book your profit here or if you want to keep a long term position, you can do that. Meaning, in simple language, you will be able to trade shares here. If you do not get allotment after these 17 dates then your refund will be sent to your bank account. Sbout the price band of the rest of the IPO, it is coming out to be ₹540 which is the lower band of the IPO and ₹570 which is the upper band of the IPO. Meaning, in case you get an IPO allotted here, then you will get one share worth ₹570 and you have to keep in mind that while applying for the IPO, you have to apply only on the upper limit. Meaning, you have to apply only at the cut off price. In simple and straightforward words, do we understand what is the business of the company? Because what business does the company do ? Where does its money come from? Only after understanding this, you can analyze the valuation of your company.
Understanding Anthem Biosciences’ Business Model:-
So their business model is that of Crisp. Have already explained to you that the company comes from the pharma sector. CRISP stands for Contract Research and Innovation Service Provider. They have more than 1000 researchers who do research. Now what do we research on? They do research on commercial drugs. You must be aware of API. Active Pharma Ingredients They make all these things. Let us directly understand what the actual products of the company are. The first is dietary supplements. About supplements, there is creatine, there is alcarnetin , there is protein. These all come in supplements and there are even more. Together they form enzymes and these form API i.e. Active Pharma Ingredients. Now they do contract based work. This means that they also work on contract basis for other big pharma sector companies. Where they work on revenue sharing model or by selling their patents.
Market Cap & Company Size:-
About the market cap of the company, it comes out to be ₹32,000 crores. Now look, this is not a small company. Their size is decent. But the company is worth ₹32,000. Meaning, the company has the scope to grow further.
Revenue & Profit Trends (Financial Performance):-
Next we come directly to its financials. In 2022, it had a revenue of ₹1200 crores. About ₹1280 crores. A decline was seen here the next year. There is growth here in 2024. It generated revenue of approximately ₹1483 crores. Let’s move ahead. In 2025, it generated a revenue of ₹130 crores. Where growth in revenue has been seen on year on year basis. Let’s just come to the pat of this, the profit after tax. So it is coming out to be 405 crores in 2022 , then 385 crores, 300, 367 crores and if we talk about the recent year, it is 451 crores. We will directly come and calculate the price to earning ratio.
Valuation Analysis: Is the Price Justified?:-
So the price to earning ratio of the company is coming out. The PE ratio comes out to be 71 according to the current year’s profit. If you look at it like this, you will find it a bit expensive. But would like to give you some clarity here. Look, this price to earning ratio is high because this is a research company. It works on innovation and you must be aware that whatever new innovation happens in the pharma sector or whatever new formula they come out with, they do not get royalty on it. Whatever patent they make, the meaning of the patent is that if they innovate something, then no one other than them can use it commercially. Or if they are giving their patent to someone , giving it on lease, they will get rent for it, they will get money in return. It is a simple thing. The patent for any pharma ingredient is valid for 20 years. So for this time period they will get the revenue sharing model or you can say they will get royalty. Now, the more innovations they create within 20 years,the more their revenue will keep increasing and they will have a fixed revenue. That means you can assume that we are not seeing any growth here right now.
Other Financial Ratios: Solid Fundamentals:-
But you can assume that this revenue of Rs. 19,000 will definitely generate that much revenue in the future and in the next two-three years, the more innovations they will do, the more formulas they will invent, it will depend on their sales as to how much royalty they will get. That means, in the pharma sector, the companies that work on API, the companies that work on the innovation part, the price to earning ratio that the market gives to them is quite high. So according to that, the PE ratio of 70 seems good. Look, you will get a better idea about the industry in which the company does business. For this will simply come to the CanX website where we are going to compare it with all the other competitors so that we can understand what valuation the market gives to them. Its direct competition is Life Sciences which has a price to earnings ratio of 95.
Grey Market Premium (GMP) Trend: Investor Sentiment Rising:-
About Divi’s Lab, it has a PE ratio of 84. At the same time, the company that we are talking about, Anthem Bios, currently has a PE ratio of 71. So, somewhere this valuation seems to be fine right now. Let us talk about the remaining financial ratios of our company. Like the company’s EBIT was, which means Earning Before Tax and Depreciation. Brother, this is coming out to be 36%. About the profit after tax margin, they save their pet but still a very good margin of 23% is seen. At the same time, if we talk about its ROE i.e. return on equity, it is coming out to be 21%. Talking about ROCE Return on Capital Employed, it is coming out to be 26%. Meaning, the financial ratios of the company are looking correct. At the same time, there is no department over the company at all.About debt to equity ratio, it comes out to be 0.05 which is quite attractive. But here a system seems to be a little wrong. Its price to book ratio is 13 which is slightly on the overvalued side. But actually they do not have such a big manufacturing facility. There are no big assets which can be sold to create their book value. So from that perspective, this matter also seems correct to us. Before your company’s grey market premium i.e. GMP comes above it. Its upper band is coming out to be ₹570 above which we are going to get shares and above this price we have seen the PE ratio of the company and also seen its market cap. Now let us talk about GMP. GMP means grey market premium, so it comes out to be ₹17. In percentage form then currently GMP is 19%. Just knowing the GMP will not help. It is also important to know the trend of GMP. 2 days ago its GMP was ₹66. A day before today, i.e. yesterday, its GMP was ₹13. Today its GMP is ₹17. Then you will be able to make a clear decision here. We will also talk about what GMP is going on in the market at that time.