Anlon Healthcare IPO subscribed 1.61 times on Day 1; GMP at 4%. Should you bid?

The Rs 121 crore IPO of Anlon Healthcare opened for subscription today, and within the first hour of bidding, the issue was subscribed by 5%. The grey market premium (GMP) is currently around 4% above the upper price band, suggesting a slight premium ahead of the listing. The company is issuing a fresh batch of 1.33 crore equity shares with a price band set between Rs 86 and Rs 91 per share.

Anlon Healthcare Subscription Status:

At the end of the first day of subscription, Anlon Healthcare’s IPO was subscribed by 1.69 times, according to data from the stock exchanges. Retail Individual Investors (RIIs) showed strong interest, subscribing 8.98 times the 13.30 lakh shares offered. Non-Institutional Investors (NIIs) subscribed to 71% of the 19.95 lakh shares available and Qualified Institutional Buyers (QIBs) placed bids for 91% of the 99.75 lakh shares allotted to them.

Anlon Healthcare GMP today

Anlon Healthcare IPO is trading at a 4.4% premium on the grey market, priced above its higher band issue price of Rs 91, indicating a slight premium ahead of its listing.
GMP Note: Grey Market Premium (GMP) reflects the unofficial premium investors are willing to pay before the official listing.

Anlon Healthcare IPO Details

Anlon Healthcare’s Rs 121 crore IPO opened for subscription on August 26 and will close on August 29. The company is issuing a fresh offer of 1.33 crore equity shares, priced between Rs 86 and Rs 91 per share.
The lot size is set at 164 shares, making the minimum retail investment approximately Rs 14,924. The IPO is managed by Interactive Financial Services, with KFin Technologies serving as the registrar. The shares are expected to list on the NSE SME platform on September 3.

Company Background

Anlon Healthcare, headquartered in Rajkot, Gujarat, is a chemical manufacturing company specializing in high-purity pharmaceutical intermediates and active pharmaceutical ingredients (APIs). Its products are used as raw materials in the production of tablets, capsules, ointments, nutraceuticals, personal care products, and veterinary APIs.

The company is one of the few domestic manufacturers of loxoprofen sodium dihydrate, a widely used treatment for arthritis, back pain, and post-surgical inflammation. It has also filed multiple Drug Master Files (DMFs) in regions including the EU, Russia, Japan, South Korea, and is currently pursuing filings with the US FDA.

Anlon Healthcare’s product portfolio includes over 65 commercialized products, with 28 at the pilot stage and 49 undergoing laboratory testing.

For FY25, the company reported revenues of Rs 120 crore, a significant increase from Rs 66 crore in FY24, and net profit rose to Rs 20.5 crore from Rs 9.7 crore in the previous year.

Use of Proceeds

Funds raised through the IPO will be used to expand manufacturing facilities, repay certain borrowings, and support general corporate purposes.

Should You Subscribe?

Brokerage firm Anand Rathi has given the IPO a “Subscribe – Long Term” rating, emphasizing Anlon’s robust and diversified product portfolio, scalable business model, and regulatory approvals in multiple regions.

However, the note warns that the IPO is “fully priced” at a P/E ratio of 19x based on FY25 earnings and an EV/EBITDA of 16.7x. It suggests the issue mainly for investors with a long-term investment perspective.

Key risks highlighted include stringent regulatory scrutiny, potential plant shutdowns, and vulnerability to product quality audits that could result in cancellations or delays.

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