Anlon Healthcare Limited (AHCL) made its debut on the Indian stock exchanges today, with a mixed listing across the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Listing Details

On the NSE, AHCL shares opened at ₹92.00, representing a modest premium of 1.10% over the initial public offering (IPO) issue price of ₹91.00. Meanwhile, on the BSE, the stock listed at par with its issue price at ₹91.00.

IPO Performance

The company's IPO, which aimed to raise ₹121.00 crore, garnered significant interest from investors during its bidding period from August 26 to August 29. The issue was oversubscribed by nearly 7 times, indicating strong demand for the company's shares.

Company Overview

Anlon Healthcare Limited is a manufacturer of high-purity pharmaceutical intermediates and Active Pharmaceutical Ingredients (APIs). The company boasts a diverse portfolio of 65 commercialized products, catering to various therapeutic segments in the pharmaceutical industry.

Operational Highlights

AHCL has been experiencing notable growth in its operational efficiency. The company's capacity utilization is projected to increase significantly:

This substantial increase in capacity utilization indicates the company's potential for growth and improved operational performance.

Expansion Plans

With the funds raised from the IPO, Anlon Healthcare has outlined several key objectives:

1. Manufacturing Facility Expansion: The company plans to increase its production capacity from the current 400 Metric Tonnes Per Annum (MTPA) to 1,100 MTPA.
2. Debt Repayment: A portion of the IPO proceeds will be used to reduce the company's debt burden.
3. General Corporate Purposes: The remaining funds will be allocated for various corporate requirements.

The expansion of manufacturing capacity is expected to position AHCL for increased market share and revenue growth in the coming years.

As Anlon Healthcare begins its journey as a publicly-traded company, investors and industry observers will be keenly watching its performance and the execution of its expansion plans in the competitive pharmaceutical sector.

Anlon Healthcare, a Gujarat-based pharmaceutical intermediates and Active Pharmaceutical Ingredients (APIs) manufacturer, is poised to make its stock market debut on Wednesday following its recent Initial Public Offering (IPO). Despite a robust subscription rate, market expectations remain subdued for the company's listing.

IPO Details and Subscription

The company's Rs 121.00 crore IPO, which concluded on August 29, saw strong investor interest with an overall subscription of nearly 7 times. Anlon Healthcare issued 1.33 crore fresh shares priced in the range of Rs 86.00-91.00 per share. However, despite the strong subscription, the grey market premium stands at a modest 2%, indicating tempered expectations for the listing.

Utilization of IPO Proceeds

The funds raised through the IPO are earmarked for several key purposes:

• Capacity expansion
• Debt repayment
• Working capital requirements

Company Background and Operations

Founded in 2013, Anlon Healthcare has established itself as a manufacturer of high-purity pharmaceutical intermediates. The company has carved a niche for itself, being among the few Indian producers of Loxoprofen sodium dihydrate.

Key operational highlights include:

• 65 commercialized products
• 28 products in the pilot stage
• 49 products under validation

Capacity Utilization and Expansion Plans

Anlon Healthcare has demonstrated significant improvement in its capacity utilization:

• 38%
• 84%

The company has ambitious plans to expand its production capacity from the current 400 MTPA to 1,100 MTPA.

Financial Performance

Anlon Healthcare has shown strong financial growth:

Valuation

Based on the earnings, the stock is valued at:

• Price-to-Earnings (P/E) ratio: 19x
• Enterprise Value to EBITDA (EV/EBITDA) ratio: 16.7x

Key Risks

Investors should consider the following risks:

1. Regulatory compliance concerns in the pharmaceutical industry
2. Limited track record of scaling operations
3. Concentration risk due to dependence on key products like Loxoprofen

As Anlon Healthcare prepares for its stock market debut, investors will be closely watching its performance in the initial trading sessions. While the strong IPO subscription indicates investor interest, the muted grey market premium suggests a cautious outlook. The company's future performance will likely depend on its ability to capitalize on its expansion plans and navigate the challenges in the competitive pharmaceutical intermediates market.