Anthem Biosciences' initial public offering (IPO) successful on its second day, propelled by backing from True North and Faering.
**Anthem Biosciences IPO: True North and Faering Capital Set for Benchmark-Beating Returns**
True North and Faering Capital, via a special purpose vehicle, initially invested Rs 620 crore ($85 million) in Anthem Biosciences in April 2021, securing an 8.33% stake in the company. After selling a small portion to the company’s founders in late 2024, their stake is now 7.93%.
Anthem Biosciences, a biopharmaceutical company founded in 2007 by Ajay Bhardwaj, KC Ravindra, and Ganesh Sambasivam, former Biocon executives, has completed the subscription of its Initial Public Offering (IPO) on the second day of bidding. The IPO opened on Monday and closes on Wednesday.
The IPO saw the private equity (PE) firms sell shares worth Rs 1,325 crore—more than double their original investment. At the upper end of the IPO price band, Anthem is anticipated to command a market valuation of Rs 32,018 crore ($3.7 billion). This valuation is consistent with earlier estimates and reflects strong growth in the company’s financials, with revenue rising 30% year-on-year to Rs 1,844.5 crore and net profit up to Rs 451.3 crore in FY25.
Multiple sources confirm that True North and Faering Capital are poised to achieve “benchmark-beating returns” on this investment, primarily through the IPO exit, which allows them to realize more than twice their initial investment in just four years. The partial exit via IPO, while retaining a significant share of the company, also leaves room for further gains as Anthem continues to grow post-listing.
The IPO was covered 3.28 times, with bids for 144.77 million shares for the 44.07 million shares on offer. Retail investors' quota was covered two times, while the portion set aside for institutional investors was covered 59%. Non-institutional investors led the bidding process, applying for nearly 10 times the shares reserved for them. Anchor investors, including Abu Dhabi Investment Authority, Norway's sovereign wealth fund, and HDFC Mutual Fund, subscribed to shares worth Rs 1,016 crore before the IPO.
The special purpose vehicle intends to sell shares worth Rs 1,325 crore in the IPO, more than double the amount initially invested. The price band for the IPO is Rs 540-570 per share, with an offer for sale worth Rs 3,395 crore. Anthem Biosciences offers drug discovery, development, and manufacturing services and operates two manufacturing plants near Bengaluru.
The IPO received regulatory approval in April. Anthem Biosciences filed for the IPO on Dec. 31, 2024. The company currently owns a 7.93% stake in Anthem, having sold a small portion to the company’s founders for Rs 12 crore late last year. True North and Faering, via a special purpose vehicle, initially invested Rs 620 crore in April 2021, securing an 8.33% stake.
In conclusion, True North and Faering Capital are expected to realize a gross return of more than double their initial investment through the Anthem Biosciences IPO, with the IPO itself facilitating the sale of over Rs 1,325 crore worth of shares. This represents a highly successful, benchmark-beating outcome for their 2021 investment, with significant potential for additional returns from their remaining equity stake as Anthem continues to perform well post-listing.
| Metric | Value | |--------------------------|-------------------------------| | Original Investment | Rs 620 crore | | IPO Stake Sale | Rs 1,325 crore (7.93% stake) | | Company Valuation (IPO) | Rs 32,018 crore ($3.7 billion) | | Implied Gross Return | >2x in 4 years | | Residual Stake | For future appreciation |
Investors True North and Faering Capital, through their 2021 initial investment of Rs 620 crore in Anthem Biosciences, are aiming to achieve "benchmark-beating returns" primarily via the IPO exit, realizing over twice their initial investment in just four years. The anticipated market valuation of Anthem Biosciences, after the successful IPO, is Rs 32,018 crore, with the potential for additional returns from the investors' remaining equity stake.
%20successful%20on%20its%20second%20day%2C%20propelled%20by%20backing%20from%20True%20North%20and%20Faering.){kind=link}