Anlon Healthcare IPO opens for subscription today; GMP at 6%. Should you apply? – News Air Insight

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The Rs 121 crore IPO of Anlon Healthcare will open for subscription today and will close on August 29. The company is offering a fresh issue of 1.33 crore equity shares at a price band of Rs 86–91 per share. The grey market premium (GMP) for the issue is quoting at about 6% over the upper price band, indicating a mild premium ahead of listing.

The lot size is fixed at 164 shares, translating into a minimum retail investment of around Rs 14,924. The issue is managed by Interactive Financial Services with KFin Technologies as the registrar. Shares are scheduled to list on NSE SME on September 3.

Company Background

Anlon Healthcare, based in Rajkot, Gujarat, is a chemical manufacturing firm engaged in producing high-purity pharmaceutical intermediates and active pharmaceutical ingredients (APIs). Its products serve as raw materials in making tablets, capsules, ointments, nutraceutical formulations, personal care products, and veterinary APIs.The company is among the few domestic producers of loxoprofen sodium dihydrate, widely used in treating arthritis, back pain, and post-surgical inflammation. It has also filed multiple Drug Master Files (DMFs) across geographies including the EU, Russia, Japan, South Korea, and is in the process of filing with the US FDA.

Its portfolio spans more than 65 commercialized products, with an additional 28 at the pilot stage and 49 under lab testing.

For FY25, the company reported revenues of Rs 120 crore, up from Rs 66 crore in FY24, and a net profit of Rs 20.5 crore versus Rs 9.7 crore a year earlier.

Use of Proceeds

The IPO proceeds will be deployed for expansion of manufacturing facilities, repayment of certain borrowings, and general corporate purposes.

Should You Subscribe?

Brokerage house Anand Rathi has rated the issue “Subscribe – Long Term”, highlighting Anlon’s strong and diversified product portfolio, scalable business model, and regulatory approvals across multiple jurisdictions.

The note, however, cautions that the IPO is “fully priced” at a P/E of 19x FY25 earnings and an EV/EBITDA of 16.7x. It recommends the issue primarily for investors with a long-term horizon.

Key Risks include high regulatory scrutiny, risks of plant shutdowns, and exposure to product quality audits that may lead to cancellations or delays.

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



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