Anlon Healthcare Set for Muted Stock Market Debut Despite Strong IPO Subscription
Anlon Healthcare, a Gujarat-based pharmaceutical intermediates manufacturer, is set to list on the stock market following its Rs 121 crore IPO. Despite a 7x subscription rate, the grey market premium stands at only 2%. The company plans to use IPO proceeds for capacity expansion, debt repayment, and working capital. Anlon Healthcare has shown strong financial growth with revenue of Rs 120 crore (81% YoY growth) and improved EBITDA margins. The stock is valued at a P/E ratio of 19x and EV/EBITDA of 16.7x. Key risks include regulatory compliance, limited scaling track record, and product concentration.
*this image is generated using AI for illustrative purposes only.
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:
| Metric | Value | YoY Growth |
|---|---|---|
| Revenue | Rs 120.00 crore | 81% |
| EBITDA Margin | 26.80% | Up from 23.20% |
| PAT | Rs 20.50 crore | More than doubled |
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:
- Regulatory compliance concerns in the pharmaceutical industry
- Limited track record of scaling operations
- 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.
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