IPO Note : Anthem Biosciences Ltd by Motilal Oswal Wealth Management
India’s fastest-growing CRDMO player: Anthem Biosciences Ltd (ABL) is an innovation & technology focused Contract Research, Development, and Manufacturing Organization (CRDMO - 82% of FY25 revenue). It has fully integrated operations (drug discovery, development, and manufacturing), with integrated New Chemical Entity (NCE) and New Biological Entity (NBE) capabilities. It’s the fastest Indian CRDMO to reach Rs.1,000 crore revenue within 14 years of operations.
Indian CRDMO marketto reach $15.4Bn: Indian CRDMO market is rapidly growing, projected to hit $15.4B by 2029 at 13.4% CAGR. Hence, ABL is expanding custom synthesis capacity by 57% to 425kL by FY26, making it India’s largest CRDMO player. As of Mar’25, it has been granted 8 patents and filed 17 patent applications.
Strong global footprint and robust growth pipeline: Since 2007, ABL has delivered 8,000+ projects for 675+ global clients. It demonstrated strong execution capabilities from discovery to commercialization through a diverse portfolio of 242 ongoing projects, leading to a large and sustained market opportunity. Its portfolio features 5 of top 6 molecules from major pharma firms, valued at $11 Bn, expected to reach $21 Bn by 2029.
Wide product portfolio: ABL produces fermentation-based APIs and specialty ingredients like probiotics & biosimilars, which complements its CRDMO business. It’s expanding fermentation capacity to 182 kL (28%) by FY26 to drive growth and enhance global manufacturing credibility.
Strong Financials: ABL’s revenue/EBITDA/PAT grew at 25%/30%/37% CAGR over FY20-25. By leveraging high-margin revenue streams like FeeFor-Service contracts and niche specialty ingredients, along with costefficient methods, it delivered highest FY25 EBITDA margin (37%), revenue growth (30%), and gross fixed asset turnover (1.6x) among peers.
Issue Size and Objects: The Rs.34 bn IPO comprises entirely an offer for sale. Post-issue, the promoter group stake will reduce to 74.7%.
View: We recommend investors to ‘Subscribe’ to the issue. At Rs.570, issue is priced at 71x FY25 P/E as compared to the listed peers average of ~95x. ABL, the only CRDMO in India with robust capabilities in both small molecules and biologics. Given the strong industry tailwinds, ABL is well positioned to capitalize on market opportunities through its capacity expansion. We favor ABL for its strong financial performance, expanding global client base, and industry-leading metrics.
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