Anlon Healthcare IPO closes with 7x subscription, retail portion booked 47x; check latest GMP

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The Rs 121-crore maiden public issue of Anlon Healthcare saw strong investor interest during its three days of public bidding. The mainboard IPO closed today (August 29) after being subscribed more than 7 times its offer size.

The initial public offering of the Rajkot-based company received bids for nearly 9.5 crore shares, as against the offer size of 1.33 crore shares, according to data on NSE. Retail investors showed the most interest, booking their reserved portion over 47 times. Non-Institutional Investors (NII) subscribed the portion kept for them nearly 11 times. Qualified Institutional Buyers (QIBs) have fully booked their reserved portion.

Anlon Healthcare IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of a little over 2 percent over the IPO price at Rs 93 apiece, according to data on Investorgain. This is lower than the 5.5 percent GMP cited by the site earlier during the day.

According to IPO Watch, the unlisted shares of the company were trading with around 7 percent GMP over the IPO price.

Key things to know about Anlon Healthcare IPO:

Anlon Healthcare, that produces pharmaceutical intermediates and active pharmaceutical ingredients (APIs), moved to the capital markets to raise over Rs 121 crore through an entirely fresh issue of 1.33 crore shares at a price band of Rs 86-91 per share.

Investors can bid for a minimum of 164 shares, requiring an investment of Rs 14,924 at the upper price band, and in multiples thereafter. The allotments will likely be finalized by September 1, and the shares are scheduled to debut on BSE and NSE on September 3.

Proceeds from the issue will be deployed towards the expansion of the company's manufacturing facility (Rs 30.7 crore), funding working capital (Rs 43.15 crore), repayment of debt, and general corporate purposes.

Should you apply for Anlon Healthcare IPO?

Anand Rathi advised investors to subscribe to the issue for the long term. "At the upper price band company is valuing at P/E of 19.0x to its FY25 earnings, with EV/EBITDA of 16.7x and market cap of Rs 4,836 million post issue of equity shares. We believe that the IPO is fully priced," the brokerage said.

Shivani Nyati, Head of Wealth at Swastika Investmart, however advised investors to avoid the issue. “The company focuses on manufacturing and marketing specialized APIs in line with global standards. It positions itself as the first producer of Loxoprofen and related formulations. In FY24, its revenue growth was impacted due to the registration process in Brazil. The company’s operations are highly dependent on a single facility located in Rajkot, Gujarat. Looking at the latest financials, valuation seems Fully priced. Hence, investors may consider avoiding this IPO,” the analyst said.

"Investors must weigh the modest scale of operations, lack of dividend history, and aggressive pricing against the strategic optionality of its custom synthesis segment and planned capex deployment. This is a company seeking capital not just for growth but for transformation," said Harshal Dasani Business Head, INVasset PMS.

"In a market increasingly favoring innovation-led, compliance-ready pharmaceutical firms, Anlon’s differentiated product slate could justify a re-rating over time. That said, given the valuation optics, the offering may suit only long-term participants with risk appetite and domain familiarity," he added.

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