Anthem Biosciences Submits DRHP for ₹3,395 Crore IPO

Anthem BioScience Ltd. has recently filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹3,395 crore through an initial public offering (IPO). The IPO is structured exclusively as an offer for sale (OFS), meaning no new shares will be issued, and the proceeds will go to the selling shareholders rather than the company itself. The equity shares are planned to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Details of the Offer for Sale

The OFS will see significant divestments by Anthem BioScience's promoters, Ganesh Sambasivan and K. Ravindra Chandrappa. Additionally, key investors, including Viridity Tone LLP and Portsmouth Technologies LLC, will sell their stakes. Other stakeholders, such as Malay J. Barua, Rupesh N. Kinekar, Satish Sharma, Prakash Kariabettan, and K. Ramakrishnan, will also offload their shares. This wide participation in the OFS demonstrates the confidence of long-term shareholders in monetizing their investments at a potentially favorable valuation.

Key Advisors and Issue Management

The IPO will be managed by prominent investment bankers JM Financial Ltd., Citigroup Global Markets India Pvt., J.P. Morgan India Pvt., and Nomura Financial Advisory and Securities (India) Pvt. These firms will act as the book-running lead managers, ensuring smooth coordination of the offering. KFin Technologies Ltd. has been appointed as the registrar of the issue, handling administrative and record-keeping tasks. The involvement of such high-profile advisors underscores the scale and importance of the IPO in the Indian financial market.

Company Overview and Business Model

Anthem BioScience is a Bengaluru-based contract research, development, and manufacturing organization (CRDMO). Founded in 2006 by Ajay Bhardwaj, a former Biocon executive, the company initially focused on early-stage drug discovery services. Over time, it has evolved into a comprehensive contract manufacturing partner, offering end-to-end solutions in drug development and production.

The company has developed expertise in cutting-edge areas such as RNA interference, antibody-drug conjugates, peptides, lipids, and oligonucleotides. These platforms enable Anthem BioScience to cater to the diverse needs of the pharmaceutical industry, including both innovative and generic drug segments. By integrating drug discovery and manufacturing capabilities, the company has positioned itself as a preferred partner for global pharmaceutical and biotechnology companies.

Competitive Landscape and Market Position

Anthem BioScience operates in a competitive landscape, facing prominent Indian active pharmaceutical ingredient (API) manufacturers such as Syngene International and Divi’s Laboratories. These companies have established themselves as leaders in the API and CRDMO markets, making the industry challenging yet rewarding. Anthem differentiates itself through its focus on niche areas like antibody-drug conjugates and RNA-based therapies, which are emerging as critical components of modern drug development.

Financial Health and Growth Potential

While the financial details leading to the IPO remain undisclosed, Anthem BioScience's growth trajectory suggests a robust revenue model. Its focus on innovative therapies and ability to scale manufacturing operations have likely contributed to steady business expansion. Furthermore, the proceeds from the OFS, though not directly benefiting the company, may enhance its market visibility and valuation, providing strategic leverage for future growth opportunities.

Significance of the IPO

The ₹3,395 crore IPO marks a significant milestone for Anthem BioScience, reflecting its evolution from a niche drug discovery firm to a major player in the CRDMO industry. The offering highlights the growing importance of Indian pharmaceutical companies in the global supply chain, particularly in advanced therapeutic areas. For investors, the IPO represents an opportunity to participate in a sector poised for growth due to increasing demand for cost-effective and high-quality pharmaceutical solutions.

Future Outlook

Anthem BioScience's strategic focus on research-intensive platforms and integrated manufacturing capabilities places it in a strong position to capitalize on industry trends. As the global pharmaceutical industry continues to pivot toward innovative therapies, Anthem is well-positioned to expand its footprint and strengthen its competitive edge. The company’s IPO could provide it with enhanced credibility and resources to further its mission of delivering cutting-edge solutions to the pharmaceutical sector.

This public offering, driven by the divestment of shares by its promoters and investors, could also pave the way for increased transparency and corporate governance, essential for attracting a broader pool of institutional investors in the long term.