Anlon Healthcare Makes Flat Debut with Minimal Premium, Meeting Market Expectations

Anlon Healthcare Limited, the pharmaceutical intermediates and API manufacturer, made a flat debut on BSE and NSE on September 3, 2025. After closing its IPO bidding between August 26-29, 2025, the company commenced trading with a minimal 1.1% premium at ₹92 on NSE and opened at ₹91 on BSE, meeting market expectations and reflecting cautious investor sentiment towards the pharmaceutical manufacturing sector.

Anlon Healthcare Listing Details

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Anlon Healthcare Limited launched its IPO at ₹91 per share with a minimum investment of 164 shares costing ₹14,924. The IPO received a moderate response with a subscription of 7.12 times - retail leading at 47.26 times, NII at 10.61 times, and QIB at only 1.07 times, indicating mixed investor interest with strong retail participation but limited institutional confidence in the pharmaceutical business.

First-Day Trading Performance Outlook

• Listing Price: The Anlon Healthcare share price opened at ₹92 on NSE and ₹91 on BSE, representing minimal premiums of 1.1% and flat performance respectively from the issue price of ₹91, delivering modest returns for investors and meeting grey market expectations.

Growth Drivers and Challenges

Growth Drivers:

• Strong Financial Recovery: Revenue surged by 81% to ₹120.46 crore in FY25 with PAT more than doubling to ₹20.52 crore, reflecting robust demand recovery and operational improvements after previous year's challenges.
• Outstanding Profitability Metrics: Exceptional ROE of 40.45%, solid ROCE of 21.93%, healthy PAT margin of 17.06%, and strong EBITDA margin of 26.88% indicating superior operational efficiency and market positioning.
• Regulatory Approvals: DMF approvals from ANVISA, NMPA, and PMDA for key APIs with 21 DMFs filed globally, providing regulatory compliance and international market access advantages.
• Comprehensive Product Portfolio: 65 commercialised products with 28 at pilot stage and 49 at laboratory testing stage providing diversified revenue streams and growth pipeline.

Challenges:

• QIB Undersubscription: Institutional investor subscription at only 1.07 times indicates concerns about business prospects and valuation in the competitive pharmaceutical manufacturing sector.
• High Valuation Concerns: Post-IPO P/E ratio of 23.57 and Price to Book Value of 4.51 indicating aggressive pricing requiring sustained exceptional performance to justify investor expectations.
• Revenue Volatility History: Previous setback in FY24 due to Brazil registration process demonstrates regulatory dependency and potential business disruption risks.
• High Debt Burden: Debt-to-equity ratio of 0.73 with borrowings of ₹58.35 crore creating moderate financial leverage concerns affecting cash flow management.
   

Utilisation of IPO Proceeds

• Working Capital Requirements: ₹43.15 crore for funding working capital needs supporting pharmaceutical manufacturing operations and business expansion initiatives.
• Capacity Expansion: ₹30.72 crore for capital expenditure towards proposed expansion enhancing production capabilities and manufacturing capacity.
• General Corporate Purposes: ₹27.03 crore for general corporate purposes supporting business operations and strategic initiatives in pharmaceutical manufacturing.
• Debt Reduction: ₹5 crore for repayment or prepayment of secured borrowings improving capital structure.
   

 Financial Performance of Anlon Healthcare

• Revenue: ₹120.46 crore for FY25, showing exceptional growth of 81% from ₹66.69 crore in FY24, reflecting strong demand recovery and successful business expansion. 
• Net Profit: ₹20.52 crore in FY25, representing remarkable growth of 112% from ₹9.66 crore in FY24, indicating substantial operational improvements and margin recovery. 
• Financial Metrics: Outstanding ROE of 40.45%, solid ROCE of 21.93%, moderate debt-to-equity ratio of 0.73, strong RoNW of 25.51%, healthy PAT margin of 17.06%, robust EBITDA margin of 26.88%, high Price to Book Value of 4.51, and market capitalisation of ₹483 crore.