Anlon Healthcare Sets IPO Price Band at ₹86–₹91, Eyes Expansion and Debt Reduction

Anlon Healthcare Limited, a pharmaceutical manufacturer based in Rajkot, Gujarat, has announced the price band for its upcoming Initial Public Offering (IPO), setting it between ₹86 and ₹91 per equity share. The company, known for producing high-purity pharmaceutical intermediates and active pharmaceutical ingredients (APIs), is preparing to enter the Indian capital markets with a 100 percent book-built issue.

This IPO marks a significant milestone for Anlon Healthcare, which began operations in 2017 and has since built a reputation for quality, compliance, and scalable manufacturing. The funds raised will be directed toward strategic expansion, debt repayment, and working capital enhancement.

Key highlights of the IPO:

1. The IPO price band is set at ₹86 to ₹91 per equity share  
2. The issue comprises a fresh offering of up to 1.4 crore equity shares  
3. The equity shares will be listed on both the NSE and BSE  
4. The IPO is managed by Interactive Financial Services Ltd, with Kfin Technologies Ltd serving as the registrar  
5. The offering is a 100 percent book-built issue, with no offer for sale component  

Company background and business model:

Founded in 2013, Anlon Healthcare operates a single ISO 9001:2015, GMP, and WHO-GMP certified manufacturing facility. The company specializes in:

- Pharmaceutical intermediates used as key starting materials for APIs  
- Active pharmaceutical ingredients for formulations such as tablets, capsules, syrups, ointments, and veterinary products  
- Nutraceutical compounds and ingredients for personal care  

Anlon’s products comply with Indian and international pharmacopeia standards including IP, BP, EP, JP, and USP, positioning the company as a reliable supplier to both domestic and select international markets.

Utilization of IPO proceeds:

The company has outlined a clear roadmap for deploying the capital raised through the IPO. The breakdown includes:

- ₹30.71 crore for capital expenditure to expand its manufacturing facility  
- ₹5 crore for full or partial repayment of outstanding secured borrowings  
- ₹43.15 crore for working capital requirements  
- Remaining funds allocated for general corporate purposes, capped at 25 percent of gross proceeds  

Financial performance snapshot:

Anlon Healthcare has demonstrated strong financial growth in recent years. As of FY 2024–25:

- Revenue from operations stood at ₹772.48 crore  
- Profit after tax reached ₹119.61 crore  
- Net worth increased to ₹718.65 crore  
- Total assets rose to ₹1,609.59 crore  
- Debt-to-equity ratio stood at 3.55, indicating a leveraged but expanding balance sheet  

The company’s EBITDA margin was 23.35 percent, with a return on net worth (RONW) of 45.92 percent and return on capital employed (ROCE) of 16.29 percent, reflecting efficient capital utilization and profitability.

IPO structure and investor allocation:

The IPO will follow standard reservation norms:

- Not more than 50 percent of the net offer reserved for Qualified Institutional Buyers (QIBs)  
- Not less than 15 percent for Non-Institutional Investors (NIIs)  
- Not less than 35 percent for retail individual investors  

Risks and considerations:

While Anlon Healthcare boasts a diverse product portfolio and experienced promoters, the company faces certain risks:

- High dependency on a single manufacturing unit  
- Revenue concentration from a few key pharmaceutical clients  
- Limited experience in complex pharma intermediates  
- Reliance on select suppliers from western India  
- Potential delays in regulatory approvals that could impact operations  

Conclusion:

With its IPO priced attractively between ₹86 and ₹91 per share, Anlon Healthcare is positioning itself for a new phase of growth. The offering provides investors an opportunity to participate in India’s expanding pharmaceutical and nutraceutical sectors, backed by a company with strong fundamentals and a clear strategic vision.

Sources: Chittorgarh, Zerodha, IPO360, Business Standard, Kotak Securities