Anlon Healthcare shares make a lukewarm debut. Do IPO investors have to wait or sell?

Anlon Healthcare shares debuted on Wednesday with a modest premium of 1% on the NSE, which reflects a weak market sentiment in the midst of a broader volatility in the pharmaceutical sector. The IPO saw a healthy general subscription percentage of 7.12 times, with retail investors subscribing 47.26 times, non-institutional investors (NII) 10.61 times and qualified institutional buyers (QIB) 1.07 times.

These figures indicate a strong retail interest, but a lukewarm response from institutional investors.

Anlon Healthcare is a specialized chemical manufacturer that focuses on pharmaceutical intermediate products and active pharmaceutical ingredients (APIs), which are used to formulate finished dosage forms such as tablets, capsules and syrup. The company also brings products to the market for nutraceuticals, personal care and animal health.

Analysts say that despite the Gedempte list, Anlon’s investment in Niche APIs such as Loxoprofen and his expansion plans suggest that it can return.

“The modest mention contrasts with the high subscription percentage and emphasizes the Marktwarriness about pharmacos, especially as a result of appreciation problems and global economic headwinds,” said a representative of Master Capital Services.

Financially the company has shown healthy growth. Turnover increased by 81% in FY25 to RS 120 Crore, while the net profit more than doubled to RS 20.5 Crore. The profit margins have been greatly expanded, with an EBITDA margin to 26.9% and pat-margin up to 17.1%, compared to 18.5% and 5.2% in FY23. In the upper price band, Anlon is appreciated on a p/e of 19x FY25 win, with an EV/EBITDA meerdere from 16.7x and a market capitalization of RS 483.6 Crore Post-postue. Analysts consider this fully priced. Key -strong points include the production of Loxoprofen sodium diydrate from Anlon, an API that is widely used for pain and inflammatory management and produced by very few manufacturers in India. Regulatory approvals from Brazil, Japan and China further strengthen its export perspectives and growth potential.

However, risks remain. The company has a limited company history and any closure of its single facility can influence production. It has also had to deal with regulatory stops in the past, a factor that investors must follow closely.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)