Amanta Healthcare IPO Latest News and Grey Market Premium (GMP) Analysis.

 

Amanta Healthcare Limited, an Ahmedabad-based pharmaceutical company, has garnered significant attention in the Indian stock market with its Initial Public Offering (IPO) that opened for subscription on September 1, 2025. As investors eagerly assess the potential of this mainboard IPO, the Grey Market Premium (GMP) has emerged as a key indicator of market sentiment. This article provides a comprehensive analysis of the latest news surrounding the Amanta Healthcare IPO, its GMP trends, financial performance, competitive landscape, and brokerage recommendations, offering insights for retail and institutional investors.

Overview of Amanta Healthcare

Founded in December 1994, Amanta Healthcare Limited specializes in the development, manufacturing, and marketing of sterile liquid pharmaceutical products, particularly parenteral solutions. The company employs advanced technologies such as Aseptic Blow-Fill-Seal (ABFS) and Injection Stretch Blow Moulding (ISBM) to produce large volume parenterals (LVPs), small volume parenterals (SVPs), and select medical devices. Its product portfolio spans six therapeutic segments, including fluid therapy, ophthalmics, respiratory care, irrigation solutions, diluents, and first-aid products like eye lubricants. With a WHO-GMP certified manufacturing facility in Hariyala, Kheda, Gujarat, spanning 66,852 square meters, Amanta Healthcare operates four LVP and three SVP lines, achieving an impressive 96% capacity utilization as of March 31, 2025.

Amanta Healthcare has a robust domestic and international presence, with 316 distributors in India and 113 active product registrations across 19 countries, including Africa, Latin America, and the UK. The company employs 1,727 personnel, including 509 full-time staff and 128 professionals in its dedicated Formulation & Development (F&D) and quality control laboratories. Its flagship SteriPort brand, featuring a two-port design for LVPs, enhances patient safety and meets market demands for IV fluid administration.

Amanta Healthcare IPO Details

The Amanta Healthcare IPO is a book-built issue aimed at raising ₹126 crore through a fresh issue of 10 million equity shares with a face value of ₹10 each. There is no Offer for Sale (OFS) component, meaning all proceeds will be utilized by the company for expansion and operational purposes. The price band is set at ₹120 to ₹126 per share, with a minimum lot size of 119 shares, requiring a retail investor to invest at least ₹14,994 at the upper price band. For small non-institutional investors (sNII), the minimum application is 14 lots (1,666 shares) worth ₹209,916, while big non-institutional investors (bNII) must apply for 67 lots (7,973 shares) amounting to ₹1,004,598.

The IPO opened for subscription on September 1, 2025, and will close on September 3, 2025. The share allotment is expected to be finalized on September 4, 2025, with refunds and share crediting to demat accounts scheduled for September 5, 2025. The tentative listing date on the BSE and NSE is September 9, 2025. Beeline Capital Advisors Private Limited is the book-running lead manager, and MUFG Intime India Private Limited is the registrar. The company raised ₹37.8 crore from anchor investors, including Bandhan Mutual Fund, Sanshi Fund, and Finavenue Capital Trust, on August 29, 2025, by allocating 3 million shares at ₹126 per share.

The net proceeds will fund capital expenditure for civil construction, equipment, and machinery to establish new manufacturing lines for SteriPort and SVP at the Hariyala facility, with the remainder allocated for general corporate purposes.

Grey Market Premium (GMP) Trends

The Grey Market Premium (GMP) is an unofficial indicator of investor sentiment, reflecting the premium at which IPO shares trade in the unregulated grey market before listing. While not an official metric, GMP provides insights into potential listing gains. For Amanta Healthcare, GMP trends have been closely monitored, showing significant volatility in the days leading up to the IPO opening.

• August 24, 2025: GMP was reported at ₹0, indicating no premium activity in the grey market.

• August 26, 2025: GMP rose to ₹21, suggesting an estimated listing price of ₹147 (17% gain over the upper price band of ₹126).

• August 29, 2025: GMP increased to ₹22, implying a listing price of ₹148 (17.46% gain).

• August 30, 2025: GMP reached ₹25, with an estimated listing price of ₹151 (19.84% gain).

• September 1, 2025: GMP peaked at ₹28, indicating a listing price of ₹154 (22.22% gain).

As of September 1, 2025, at 9:15 a.m., the GMP stood at ₹28 per share, suggesting a potential listing gain of approximately 22.22% over the upper price band of ₹126. This translates to an estimated listing price of ₹154 per share, offering a potential gain of ₹2,975 per lot for retail investors. Some sources reported GMP as high as ₹30, indicating a 23% gain.

However, GMP is speculative and subject to extreme volatility, driven by market sentiment rather than fundamentals. Investors are cautioned against relying solely on GMP, as it does not guarantee listing performance. Brokerages emphasize consulting financial advisors and reviewing the Red Herring Prospectus (RHP) before investing.

Subscription Status

On the first day of bidding (September 1, 2025, by 10:36 a.m.), the Amanta Healthcare IPO was subscribed 0.60 times overall. The retail portion was fully subscribed at 1.00 times, reflecting strong interest from individual investors. The non-institutional investor (NII) segment was subscribed 0.47 times, while the qualified institutional buyer (QIB) portion had not yet seen significant activity. The subscription status is expected to increase over the next two days, with final figures available after the IPO closes on September 3, 2025.

The IPO has reserved 50% of the shares for QIBs, 35% for retail investors, and 15% for NIIs, ensuring a balanced allocation structure.

Financial Performance

Amanta Healthcare’s financials provide a mixed picture. For the fiscal year ending March 31, 2025, the company reported:

• Revenue: ₹276.09 crore, a 2% decrease from ₹281.61 crore in FY24.

• Profit After Tax (PAT): ₹10.50 crore, a significant 189% increase from ₹3.63 crore in FY24.

The revenue decline is attributed to static top-line growth and adjustments related to MAT (Minimum Alternate Tax) incentives in FY23 and FY24. However, the substantial PAT growth reflects improved margins and operational efficiency. At the upper price band of ₹126, the IPO is valued at a price-to-earnings (P/E) ratio of 34.60x pre-IPO and 46.60x post-IPO based on FY25 earnings, which some analysts consider premium compared to industry peers trading at 16–20x.

Competitive Landscape and Industry Outlook

Amanta Healthcare operates in the highly competitive pharmaceutical sector, facing pressure from established players like Cipla Ltd., Wockhardt Ltd., Mankind Pharma Ltd., and Sun Pharma Industries, as well as emerging and unlisted entities. The company’s focus on sterile injectables and IV fluids positions it in a growing market, driven by rising chronic diseases, lifestyle changes, and increasing healthcare access. India’s pharmaceutical formulation exports reached $12.3 billion to regulated markets in FY24, with a projected growth of 6–8% in FY25, supported by new product launches and demand from regions like the US, Europe, and Africa.

However, challenges include increasing competition, volatility in raw material prices, and tariff-related risks, which could impact profitability. Amanta’s high capacity utilization (96%) and WHO-GMP certifications provide a competitive edge, but execution of its expansion plans and regulatory compliance will be critical.

Brokerage Recommendations

Brokerages have provided varied recommendations based on Amanta Healthcare’s fundamentals, valuations, and growth prospects:

• Exencial Research Partners: Recommends “Subscribe” for long-term investors, citing Amanta’s differentiated position in the sterile injectables market, strong domestic and export footprint, and capacity expansion plans. However, they note the premium valuation and suggest conservative investors may wait.

• Anand Rathi: Assigns a “Subscribe – Long-Term” rating, highlighting the company’s formulation expertise and growth potential but noting the high P/E ratio of 46.6x.

• BP Wealth: Recommends “Subscribe” for medium- to long-term investors, expecting improved scale and product mix to offset valuation concerns.

• Ventura Securities: Assigns a “Subscribe” rating, emphasizing Amanta’s WHO-GMP certified facility, diverse portfolio, and experienced management.

• Arihant Capital Markets: Gives a “Neutral” rating, citing execution risks and competitive pressures despite growth opportunities.

• Minerva Capital Research: Recommends “Subscribe” for long-term investors, acknowledging the high P/E ratio but highlighting growth visibility.

Investment Considerations

Strengths

• Established Market Presence: Amanta’s extensive distribution network (316 distributors in India) and international registrations (113 across 19 countries) provide a strong foundation.

• Advanced Technology: The use of ABFS and ISBM technologies ensures high-quality sterile products, meeting global standards.

• High Capacity Utilization: The 96% utilization rate reflects operational efficiency and demand for its products.

• Growth Potential: Expansion plans for new manufacturing lines and a growing export market position Amanta for future growth.

Risks

• Premium Valuation: The P/E ratio of 46.6x is higher than industry peers, posing a risk for short-term investors.

• Competitive Pressure: The pharmaceutical sector’s fragmented nature and competition from larger players could impact margins.

• Revenue Stagnation: A 2% revenue decline in FY25 raises concerns about top-line growth.

• GMP Volatility: The GMP’s speculative nature means listing gains are not guaranteed.

How to Apply and Check Allotment Status

Investors can apply through platforms like Zerodha, Angel One, or Upstox using UPI or ASBA payment methods. For example, Zerodha users can log into the Console, navigate to the IPO section, select Amanta Healthcare IPO, and submit their application with UPI approval. To check allotment status, investors can visit the MUFG Intime India registrar portal (in.mpms.mufg.com) or the BSE/NSE websites, entering their PAN, application number, or DP Client ID.

Conclusion

The Amanta Healthcare IPO has generated significant buzz, driven by a GMP indicating potential listing gains of 22–23%. While the company’s strong manufacturing capabilities, global certifications, and growth plans make it an attractive long-term investment, its premium valuation and competitive landscape warrant caution. Retail investors, particularly those with a medium- to long-term horizon, may find the IPO appealing, but thorough research and consultation with financial advisors are essential. The subscription window closes on September 3, 2025, with listing expected on September 9, 2025. Investors should monitor subscription updates and GMP trends while prioritizing the company’s fundamentals over speculative indicators.

Disclaimer: Investments in IPOs carry market risks. Investors should consult financial advisors and review the RHP before making decisions. GMP is speculative and not an official indicator of listing performance.