Anlon Healthcare IPO: Soaring Demand on Day 2 – A Deep Dive into Subscription, GMP, and Investment Prospects

The Anlon Healthcare Initial Public Offering (IPO) has captured significant investor interest, demonstrating robust demand as it reached over 2.1 times subscription by the second day of bidding. This BSE SME segment offering has generated considerable buzz, prompting many to evaluate its potential for both listing gains and long-term growth.

Opening its doors to investors on January 30th, the Anlon Healthcare IPO is set to conclude on February 1st.

Priced at a fixed Rs 100 per equity share, the company aims to raise Rs 15 crore through the issuance of 15 lakh fresh equity shares. Investors can bid in lots of 1,200 shares, with the tentative listing on the BSE SME platform scheduled for February 6th.

Subscription Status: A Closer Look

As of the second day of bidding, the IPO's overall subscription stood at an impressive 2.13 times.

The retail investor segment led the charge, with their portion being subscribed a remarkable 3.49 times. Non-Institutional Investors (NIIs) showed a more cautious approach, with their category subscribed 0.77 times. This strong retail participation often indicates a positive sentiment surrounding the issue, particularly for smaller SME offerings.

Grey Market Premium (GMP) and Listing Prospects

The Grey Market Premium (GMP) for Anlon Healthcare IPO has been a key indicator for potential listing performance.

As of the latest available data during Day 2, the GMP was reported at Rs 15. This suggests an expected listing gain of 15% over the issue price of Rs 100, bringing the anticipated listing price to around Rs 115 per share. While GMPs are dynamic and unofficial indicators, they often provide a snapshot of market sentiment and demand.

Company Overview: Anlon Healthcare

Established in 2017, Anlon Healthcare Limited is a pharmaceutical product marketing and distribution company based in Ahmedabad.

The company specializes in offering a diverse range of pharmaceutical products across various therapeutic areas including antibiotics, cardiac, diabetes, anti-inflammatory, gastrointestinal, and dermatology. Its business model focuses on marketing and distribution, leveraging a network to reach a broad customer base.

Financial Performance: A Healthy Trajectory

Anlon Healthcare has demonstrated a healthy financial growth trajectory.

For the fiscal year 2023, the company reported revenues from operations of Rs 30.58 crore, a significant jump from Rs 19.38 crore in FY22. Correspondingly, its profit after tax also saw a notable increase, rising to Rs 1.55 crore in FY23 from Rs 0.96 crore in FY22. These figures highlight the company's expanding operations and improving profitability.

Expert Opinions: To Apply or Not to Apply?

Brokerage houses have weighed in on the Anlon Healthcare IPO, offering their perspectives to guide investors:

• Swastika Investmart: Recommended "Subscribe for listing gain and long-term." The brokerage firm highlighted the company's fair valuation and strong growth prospects within the pharmaceutical distribution sector as key reasons for their positive outlook.
• Anand Rathi: Advised "Subscribe for long-term." Anand Rathi pointed to Anlon Healthcare's commendable financial track record and the positive long-term outlook for the pharmaceutical industry as factors supporting their recommendation.

The proceeds from the IPO are primarily earmarked for meeting the company's working capital requirements and for general corporate purposes, which are essential for supporting its ongoing growth and operational efficiency.

Given the strong retail subscription, encouraging GMP, and positive expert views, the Anlon Healthcare IPO presents an interesting opportunity for investors.

However, as with all investments, potential applicants should conduct their own due diligence, consider market volatility, and align their decision with their individual risk appetite and investment goals.