Anelon Healthcare Shares make a vague debut. Should IPO investors wait or sell?

Alon Healthcare stocks entered the NSE on Wednesday at a normal 1% premium, reflecting a weak market spirit amid widespread instability in the pharma sector. The IPO saw a 7.12-fold health overall subscription rate, in which retail investors subscribe 47.26 times, non-institutional investors (NII) 10.61 times, and qualified institutional buyers (QIB) 1.07 times.

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

Anylon Healthcare is a special chemical manufacturer that focuses on pharmaceutical intermediates and active pharmaceutical components (APIs), which are used to form dose forms such as tablets, capsules and syrups. The company also marketes products for neutrasuts, personal care and animal health.

Analysts say that despite the mute list, Alon’s investment in special APIs, such as Loksoprofen and its expansion plans, indicates that it can return.

“The defeated list contrasts with a high subscription rate and highlights the market warning about the IPO, especially due to valuation concerns and global economic headwinds,” said the representative of the Master Capital Services, “Master Capital Services said.

Economically, the company has shown healthy growth. In the financial year, 81% increased to Rs. 120 crore, while net profit has been doubled by more than 20.5 crore. Professional margins have expanded, EBITDA margins reach 26.9% and abdominal margin, which has increased to 18.5% in FY 23 and 17.1% compared to 5.2%.

On the upper price band, the value of Alon is worth the P/E of FY 25, with EV/EBITDA multiple and 483.6 crore after market capitalization of 16.7X. Analysts consider this at the full price.

The main power includes the production of Locosoprofen sodium dihydrate of Alon, which is widely used for pain and inflammatory management of APIs and is produced by very few manufacturers in India. Regulatory approvals from Brazil, Japan and China strengthen their export probability and probability of growth.

However, the risks are pending. The company has a limited operating history history, and any shutdown of one feature can affect the production. In the past, it has also faced regulatory stuck, a factor should be closely monitored by investors.

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