Anelon Healthcare IPO subscribed to 1.61 times on 1 day; GMP at 4%. Should you bid?

Alon Healthcare Rs. 121 million IPOs opened for subscription today, and in the first hour of bid, the issue was subscribed by 5%. Gray Market Premium (GMP) is currently around 4% above the upper price band, indicating a little premium in front of the list. The company will pay Rs. A new batch of 1.33 crore equity shares is issued with a band between 86 and 91.

Anolon Healthcare Subscription Status:

At the end of the first day of the subscription, according to data from stock exchanges, Alon Healthcare’s IP was subscribed to 1.69 times. Retail personal investors (RIIS) showed strong interest, which subscribe to 8.98 times the 13.30 lakh shares offered. Non-Institutional Investors (NIIS) subscribed to 19.95 lakh shares and 71% of Qualified Institutional Byers (QIBS), bid for 91% of 99.75 lakh shares allotted to them.

Anolon Healthcare GMP today

Anelon Healthcare IPO is trading at a 4.4% premium on the gray market, which is priced at above Rs 91 in its Band Witch Band issue price, showing a slight premium in front of its list.

GMP Note: The Gray Market Premium (GMP) reflects unofficial premium investors are willing to pay before the official list.

Anolon Healthcare IPO Details

Alon Healthcare Rs. 121 crore IPO was opened for a subscription on 26 August Gust and will close on 29 August Gust. The company is issuing a new offer of equity shares worth Rs 1.33 crore, which is priced at Rs. 86 to 91 rupees.

Lot size is set to 164 stocks, making minimum retail investment around Rs 14,924. The IPO is managed by interactive financial services, in which KFIN technologies serve as registrars. Shares are expected to be listed on the NSE SME platform on September 3.

Company’s background

Alon Healthcare, headquartered in Rajkot, Gujarat, is a chemical production company that features high-richness pharmaceutical intermediates and active pharmaceutical components (APIs). Its products are used as raw materials in tablets, capsules, ointments, neutrasuts, personal care products and veterinary APIs.

The company is one of some of the local manufacturers of Loksoprofen sodium dihydrate, widely used for arthritis, back pain and post -surgical inflammation. It has also filed multiple drug master files (DMFs) in regions including the EU, Russia, Japan, South Korea and is currently filing with the US FDA.

Alon Healthcare’s product portfolio contains more than 65 commercial products, including 28 and 49 laboratory tests on the pilot stage.

For the financial year 25, the company recorded a revenue of Rs 120 crore, which has increased significantly by Rs 66 crore in the financial year 24, and net profit increased from Rs 9.7 crore to Rs 20.5 crore last year.

Income use

Funds raised by IPOs will be used to expand product facilities, pay some lending and support general corporate purposes.

Should you subscribe?

Brokerage firm Anand Rathi has given the IPO “Subscribe – Long -term” rating, emphasizing the strong and varied production portfolio, scalable business model and regulatory approvals in multiple regions.

However, the note warns that the IPO is “full price” in the P/E ratio of 19x based on the earnings of fiscal year 25 and EV/EBITDA of 16.7X. It indicates this issue mainly for investors with a long -term investment perspective.

The highlighted key risks include strict regulatory tests, potential plant shutdowns and weaknesses of ITS dits of product quality that can result in cancellation or delay.

(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)