Anlon Healthcare IPO subscribed 3.8 times on Day 3 so far; GMP at 5%. Check details

The Rs 121 crore initial public offering of Anlon Healthcare was subscribed 1.69 times by Day 3, led by strong retail demand. The mainboard issue was fully subscribed on Day 1 of bidding but has seen slow growth since. The grey market premium on the shares of the company hovered around 5.5%, implying a listing price of Rs 96 against the upper band of Rs 91.

Anlon Healthcare IPO was booked 3.8 times as of 10:30 a.m. on Friday, supported by strong retail subscription at 25.85 times. This was followed by Non-Institutional Investors (NIIs), who booked to their allotted quota by 2.09 times.

The Qualified Institutional Buyers (QIBs) had meanwhile bid for 1,00,78,784 shares in Anlon Healthcare IPO against the 99,75,000 shares reserved for them, attracting an overall subscription of 1.01 times.

Anlon Healthcare IPO: Key details

The Anlon Healthcare IPO opened for subscription on August 26 and will remain open until August 29. The offer comprises a fresh issue of 1.33 crore equity shares, offered at a price band of Rs 86 and Rs 91 apiece.

The minimum lot size is 164 shares, requiring a retail investment of approximately Rs 14,924. The IPO is being managed by Interactive Financial Services, with KFin Technologies acting as the registrar. Listing of shares is scheduled on the NSE SME platform on September 3.

Funds raised through the Anlon Healthcare IPO will be directed towards capacity expansion, partial loan repayment, and general corporate purposes.

About Anlon Healthcare

Rajkot-based Anlon Healthcare operates in the chemical manufacturing sector, with a focus on high-purity pharmaceutical intermediates and active pharmaceutical ingredients (APIs). Its products are used in tablets, capsules, ointments, nutraceuticals, personal care items, and veterinary APIs.

The company is one of the few Indian manufacturers of loxoprofen sodium dihydrate, a commonly used anti-inflammatory drug. It has filed multiple Drug Master Files (DMFs) in international markets, including the EU, Russia, Japan, and South Korea, and is working towards US FDA approval.

Anlon Healthcare's product range includes 65+ commercial products, 28 in the pilot stage, and 49 under lab testing.

In FY25, the company posted revenue of Rs 120 crore, up from Rs 66 crore in FY24. Net profit more than doubled to Rs 20.5 crore from Rs 9.7 crore year-on-year.

What analysts are saying about Anlon Healthcare IPO

Brokerage firm Anand Rathi has given the Anlon Healthcare IPO a “Subscribe – Long Term” rating. The recommendation is based on the company’s diversified product portfolio, scalable business model, and established regulatory approvals across multiple global markets.

However, the brokerage notes that the issue is fully priced, with a P/E ratio of 19x (FY25 earnings) and EV/EBITDA of 16.7x. The IPO is, therefore, best suited for investors with a long-term investment horizon.

Key risks flagged include strict regulatory norms, possible manufacturing disruptions, and exposure to product quality inspections, which could result in operational delays or rejections.

Also read: NSE proposes to roll out pre-open session for index, stock futures from December 8, following BSE’s move

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)