Anthem Biosciences IPO: A Test of Resilience Amid Market Turmoil

As the BSE Sensex and NSE Nifty reel under the weight of escalating global trade tensions and growing domestic market volatility, Bengaluru-based Anthem Biosciences Limited has taken a decisive step forward by securing approval from the Securities and Exchange Board of India (SEBI) to launch its Rs 3,395 crore Initial Public Offering (IPO).

The public issue, structured entirely as an offer-for-sale (OFS) of equity shares by promoters and existing shareholders, is set to test investor appetite at a time when Indian equity markets have witnessed steep declines. In recent sessions, both the Sensex and Nifty have plunged over 4%, reflecting deepening risk aversion.

Navigating Market Volatility

The sharp fall in Indian markets has been attributed to a confluence of global and domestic factors. The US tariff war, which has triggered a chain reaction across global equities, has also weighed heavily on Indian stocks. A recent 26% tariff on Indian imports announced by the United States has raised fears of trade disruptions, particularly impacting export-driven sectors like pharmaceuticals and IT.

On April 8, the BSE Sensex closed at 73,137.90, down 2,227 points or 2.95%, while the NSE Nifty ended at 22,161.60, down 743 points or 3.24%. This single-day market rout wiped out Rs 14 lakh crore in investor wealth, underscoring the fragile investor sentiment amid high inflation, rising interest rates, and recessionary concerns.

Anthem’s Strength Amid Challenges

Despite this volatility, Anthem Biosciences has shown strong financial resilience. The company’s revenue from operations rose 34.3% to Rs 1,419 crore in FY24, up from Rs 1,056 crore in FY23. Net profit stood at Rs 367 crore, reinforcing the company’s strong fundamentals.

Founded in 2006, Anthem operates as a Contract Research, Development, and Manufacturing Organization (CRDMO) with capabilities spanning New Chemical Entities (NCEs) and New Biological Entities (NBEs). The company is also engaged in the manufacture and sale of specialized fermentation-based Active Pharmaceutical Ingredients (APIs) such as enzymes, peptides, probiotics, nutritional actives, and biosimilars.

Anthem has two operational manufacturing facilities in Karnataka—Unit I in Bommasandra and Unit II in Harohalli—with a combined custom synthesis and fermentation capacity of 270 kL and 142 kL, respectively. A third facility, Unit III in Harohalli, is currently under construction and is expected to go live in the first half of 2025.

A Benchmark for Investor Confidence

The IPO, backed by lead managers JM Financial Limited, Citigroup Global Markets India, J.P. Morgan India, and Nomura Financial Advisory, proposes to list shares on both the BSE and NSE. Promoters Ganesh Sambasivam and K Ravindra Chandrappa, along with investors Viridity Tone LLP and Portsmouth Technologies LLC, will offload part of their holdings. Additional shareholders including Malay J Barua, Rupesh N Kinekar, Satish Sharma, Prakash Kariabettan, and K Ramakrishnan will also participate in the OFS.

As the biotech firm steps into the public market spotlight, its offering will serve not only as a gauge of investor confidence in India’s biotech growth story, but also as a barometer for the overall resilience of Indian equity markets during a period of elevated global and domestic uncertainty.

Disclaimer: This report is based on a company press release and has been creatively edited for readability without altering factual content. TICE does not provide investment advice, verify the information independently, or assume responsibility for business decisions based on this report.