Anlon Healthcare Limited, a Gujarat-based chemical manufacturing company specializing in pharmaceutical intermediates and active pharmaceutical ingredients (APIs), launched its Initial Public Offering (IPO) on August 26, 2025, with the subscription period closing on August 29, 2025. The IPO has garnered significant attention from investors, particularly due to its grey market premium (GMP) trends, financial performance, and growth prospects in the rapidly expanding Indian pharmaceutical sector. This article provides an in-depth analysis of the Anlon Healthcare IPO, focusing on its GMP trends, company background, financials, subscription status, and investment potential for both short-term listing gains and long-term growth. By examining these aspects, we aim to offer a balanced perspective for investors considering participation in this IPO.
Overview of Anlon Healthcare Limited
Founded in 2013, Anlon Healthcare Limited is a key player in the pharmaceutical manufacturing industry, with operations centered in Rajkot, Gujarat. The company specializes in producing high-purity pharmaceutical intermediates, which serve as critical raw materials for active pharmaceutical ingredients (APIs). Additionally, Anlon manufactures APIs used in various finished dosage forms (FDFs), such as tablets, capsules, ointments, and syrups, as well as nutraceuticals, personal care products, and veterinary applications. Its portfolio includes 65 commercialized products, 28 products at the pilot stage, and 49 products in laboratory testing, showcasing a robust pipeline for future growth.
Anlon Healthcare is one of the few Indian manufacturers of loxoprofen sodium dihydrate, an API used to treat pain and inflammation associated with conditions like arthritis, back pain, and post-surgical recovery. The company’s APIs comply with global pharmacopeia standards, including Indian Pharmacopoeia (IP), British Pharmacopoeia (BP), European Pharmacopoeia (EP), Japanese Pharmacopoeia (JP), and United States Pharmacopoeia (USP). It has secured Drug Master File (DMF) approvals from regulatory bodies in Brazil (ANVISA), China (NMPA), and Japan (PMDA), with 21 DMFs filed across regions like the European Union, Russia, South Korea, Iran, Jordan, and Pakistan. This global compliance enhances its export potential, serving clients in over 15 countries, including Germany, Italy, Japan, Brazil, and the UK.
The company operates a 5,059 sq. m. manufacturing facility in Rajkot with a capacity of 400 metric tons per annum (MTPA). It employs 105 full-time staff and eight contract workers as of January 31, 2025, and has plans to expand its capacity to 1,100 MTPA, nearly tripling its production scale. This expansion is a key objective of the IPO, aimed at capitalizing on the growing demand for pharmaceutical intermediates and APIs in domestic and international markets.
Anlon Healthcare IPO Details
The Anlon Healthcare IPO is a book-building issue aimed at raising ₹121.03 crore through a fresh issue of 1.33 crore equity shares, each with a face value of ₹10. The price band is set at ₹86 to ₹91 per share, with a lot size of 164 shares. Retail investors need a minimum investment of ₹14,924 for one lot, while high-net-worth individuals (HNIs) must bid for at least 14 lots (2,296 shares, ₹208,936) for small HNI (sNII) and 68 lots (11,152 shares, ₹1,014,832) for big HNI (bNII). The share allocation is structured as follows: 75% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.
The IPO opened for subscription on August 26, 2025, and closed on August 29, 2025. The allotment is expected to be finalized on September 1, 2025, with shares credited to demat accounts by September 2, 2025. The tentative listing date on the BSE and NSE is September 3, 2025. Interactive Financial Services Limited serves as the book-running lead manager, and KFin Technologies Limited is the registrar.
The net proceeds from the IPO will be utilized for:
Capital Expenditure for Expansion: ₹30.72 crore to fund the expansion of the manufacturing facility in Rajkot.
Debt Repayment: ₹5 crore for full or partial repayment of secured borrowings (term loans).
Working Capital Requirements: ₹43.15 crore to support operational needs.
General Corporate Purposes: The remaining funds will address miscellaneous corporate objectives.
Grey Market Premium (GMP) Trends
The grey market premium (GMP) is a key indicator of investor sentiment and expected listing performance in the unofficial market before an IPO lists on stock exchanges. The GMP reflects the premium investors are willing to pay over the IPO’s issue price in the grey market. For the Anlon Healthcare IPO, GMP trends have been volatile, reflecting mixed market sentiments.
As of August 28, 2025, the GMP for Anlon Healthcare IPO was reported at ₹5 per share, according to multiple sources, including investorgain.com and livemint.com. This translates to an estimated listing price of ₹96 per share, a 5.49% premium over the upper price band of ₹91. However, GMP figures have fluctuated significantly in the lead-up to the IPO. For instance:
On August 20, 2025, the GMP was ₹0, indicating no premium and a potential flat listing.
By August 26, 2025, the GMP peaked at ₹6, suggesting a listing price of ₹97 (6.59% premium).
Some sources, such as univest.in, reported a GMP as high as ₹43 on August 26, 2025, implying a listing price of ₹134 (47.25% premium), though this figure appears to be an outlier and not widely corroborated.
Other reports, like myinvestmentideas.com, noted a GMP range of ₹20-25, suggesting a listing price of ₹111-116 (21.98%-27.47% premium).
The GMP’s volatility reflects uncertainty in investor expectations, influenced by market conditions, subscription trends, and the company’s valuation. While the GMP on August 28 remained steady at ₹5, indicating modest listing gains, earlier spikes suggest potential for higher returns if market sentiment improves closer to the listing date. Investors should note that GMP is not a guaranteed predictor of listing performance, as it is subject to rapid changes based on grey market activities and broader market dynamics.
Subscription Status
The subscription status of the Anlon Healthcare IPO provides insight into investor demand across different categories. As of August 28, 2025, at 1:09 PM IST, the IPO was subscribed 2.66 times, receiving bids for 35.35 million equity shares against the 13.3 million shares offered, according to NSE data. The breakdown by investor category is as follows:
Retail Investors: The retail portion was oversubscribed 17.55 times, reflecting strong interest from individual investors.
Non-Institutional Investors (NIIs): The NII segment was subscribed 1.45 times, indicating moderate participation.
Qualified Institutional Buyers (QIBs): The QIB portion lagged, with a subscription rate of 0.92 times, suggesting institutional investors were cautious.
On Day 1 (August 26, 2025), the IPO was subscribed 1.69 times, with retail investors leading at 8.99 times, NIIs at 0.71 times, and QIBs at 0.91 times. By Day 2, subscription improved, particularly in the retail and NII categories, but institutional demand remained subdued. This skewed demand, with retail investors driving the subscription, suggests strong retail confidence in the IPO’s listing potential, possibly fueled by the company’s growth prospects and GMP trends. However, the lack of robust QIB participation could temper listing gains, as institutional backing often signals long-term confidence.
Financial Performance
Anlon Healthcare’s financial performance is a critical factor for investors evaluating the IPO. The company has shown significant growth in recent years, though its revenue trajectory has been inconsistent due to operational challenges. Key financial highlights include:
Fiscal 2025 (FY25): Revenue from operations reached ₹120.46 crore, an 81% increase from ₹66.69 crore in FY24. Profit after tax (PAT) surged 112% to ₹20.52 crore from ₹9.66 crore.
Fiscal 2024 (FY24): Revenue declined 41% to ₹66.58 crore from ₹112.87 crore in FY23, primarily due to a four-month suspension of its manufacturing facility for ANVISA compliance upgrades. PAT, however, grew 65.8% to ₹9.65 crore from ₹5.82 crore in FY23.
Fiscal 2023 (FY23): Revenue was ₹112.87 crore, with a PAT of ₹5.82 crore.
The company’s market capitalization post-IPO is estimated at ₹483.68 crore. Key valuation metrics based on FY25 financials include:
Earnings Per Share (EPS): ₹5.15 (pre-issue).
Price-to-Earnings (P/E) Ratio: 17.67 at the upper price band of ₹91, considered reasonable compared to peers.
Return on Net Worth (RoNW): Not explicitly stated but implied to be strong given the PAT growth.
Net Asset Value (NAV): Not disclosed in available data.
The revenue dip in FY24 highlights operational risks, such as regulatory compliance disruptions, but the strong rebound in FY25 demonstrates resilience and growth potential. The company’s reliance on a limited customer base (top 10 customers accounted for 77.70% of FY25 revenue) and a single manufacturing facility pose risks, but its diversified product portfolio and global regulatory approvals mitigate these concerns.
Brokerage Reviews and Recommendations
Brokerage firms have provided varied recommendations on the Anlon Healthcare IPO, reflecting differing views on its valuation and growth prospects:
Anand Rathi Shares & Stock Brokers: Recommends “Subscribe for long-term,” citing the company’s diversified portfolio, scalable business model, and high entry barriers due to regulatory compliance. They note a P/E ratio of 19 times FY25 earnings and an EV/EBITDA of 16.7 times, suggesting the IPO is fully priced but attractive for long-term investors.
Arihant Capital Markets: Recommends “Subscribe,” highlighting Anlon’s diverse portfolio, regulatory approvals, and planned capacity expansion. They note a P/E ratio of 24 times based on annualized FY25 EPS of ₹3.9, with growth potential tempered by execution risks.
SMC Global: Neutral stance, acknowledging strong growth potential, diverse products, and global approvals but cautioning about revenue inconsistency and customer concentration risks.
Swastika Investmart: Recommends “Avoid,” citing high valuation and fully priced shares based on FY25 financials.
SMIFs Limited: Recommends “Subscribe,” emphasizing the planned capacity expansion from 400 MTPA to 1,100 MTPA, which could double revenue in 2-3 years, offering compelling long-term growth.
The mixed reviews reflect a divide between optimism about Anlon’s growth in the pharmaceutical sector and concerns about its valuation and operational risks. Investors should weigh these perspectives against their risk appetite and investment horizon.
Investment Potential and Risks
Investment Potential
Growth in Pharmaceutical Sector: India’s pharmaceutical industry is expected to grow due to increasing exports and domestic demand. Anlon’s focus on high-purity intermediates and APIs positions it well to capitalize on this trend.
Capacity Expansion: The planned expansion to 1,100 MTPA could significantly boost production and revenue, with analysts projecting revenue doubling in 2-3 years.
Global Presence: With DMF approvals in multiple countries and clients in 15 nations, Anlon has a strong export foothold, contributing ₹3.90 crore (3.24% of FY25 revenue) from exports.
Reasonable Valuation: A P/E ratio of 17.67-24 times is competitive compared to peers, making the IPO attractive for long-term investors.
Listing Gains: While the current GMP of ₹5 suggests modest listing gains of 5.49%, earlier GMP spikes (up to ₹43) indicate potential for higher returns if market sentiment improves.
Risks
Revenue Inconsistency: The 41% revenue drop in FY24 due to a facility shutdown highlights operational vulnerabilities.
Customer Concentration: Dependence on a limited customer base (77.70% of FY25 revenue from top 10 customers) poses a risk if key clients are lost.
Single Facility: Operating from one facility in Rajkot increases exposure to disruptions from audits, natural disasters, or regulatory issues.
Regulatory Risks: Stringent global compliance requirements could lead to production halts or increased costs.
Volatile GMP: The fluctuating GMP (from ₹0 to ₹43) reflects uncertainty, and a low GMP on listing day could result in flat or negative returns.
Should You Invest?
The Anlon Healthcare IPO presents a mixed but compelling case for investors. For short-term investors, the current GMP of ₹5 suggests modest listing gains of around 5.49%, though earlier highs of ₹20-43 indicate potential for better returns if market sentiment strengthens. However, GMP volatility warrants caution, and investors should avoid relying solely on grey market trends.
For long-term investors, the IPO is more attractive. Anlon Healthcare’s strong financial growth (81% revenue increase and 112% PAT growth in FY25), diversified portfolio, global approvals, and planned capacity expansion signal robust growth potential. The company’s position in the high-growth pharmaceutical sector, coupled with a reasonable P/E ratio, makes it a viable option for those with a 2-3 year investment horizon. Brokerages like Anand Rathi and Arihant Capital endorse this view, emphasizing long-term growth over short-term gains.
However, risks such as revenue inconsistency, customer concentration, and reliance on a single facility cannot be ignored. Investors should assess these against the company’s strengths and consult financial advisors to align the investment with their goals.
Conclusion
The Anlon Healthcare IPO, with its ₹121.03 crore fresh issue, offers investors a chance to tap into the growing pharmaceutical intermediates and API market. The GMP of ₹5 as of August 28, 2025, suggests modest listing gains, but earlier spikes indicate potential for higher returns under favorable market conditions. The company’s strong financial rebound in FY25, global regulatory approvals, and planned capacity expansion make it a promising long-term investment, despite operational and valuation risks. Retail investors have shown strong interest, with the IPO oversubscribed 2.66 times by Day 2, though institutional caution may temper listing performance. Ultimately, investors should carefully evaluate the company’s fundamentals, GMP trends, and brokerage reviews before deciding to subscribe, keeping both short-term and long-term objectives in mind.
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