Anlon Healthcare IPO: Check IPO Date, Lot Size, Price & Details

Business Overview:

Incorporated in 2013, Anlon Healthcare Limited is a pharmaceutical chemical manufacturer specializing in pharma intermediates and active pharmaceutical ingredients (APIs). The company caters to a wide range of sectors including pharmaceuticals, nutraceuticals, personal care, and veterinary products.

Anlon’s portfolio comprises 65 commercialized products, alongside 28 products at the pilot stage and 49 in laboratory testing, indicating a strong pipeline for expansion. Its offerings include intermediates like Cyanoethylbenzoic acid, Ketonitrile, and Methyldesloratadine, as well as APIs widely used in tablets, capsules, ointments, syrups, and other formulations.

The company differentiates itself through custom manufacturing capabilities, delivering high-purity complex chemicals tailored to customer requirements, thereby enhancing its value proposition in regulated markets. On the regulatory front, Anlon has achieved Drug Master File (DMF) approvals from ANVISA, NMPA, and PMDA for APIs such as Loxoprofen sodium dihydrate and Loxoprofen acid, and has filed 21 DMFs globally, with additional filings underway for Ketoprofen and Dexketoprofen Trometamol.

With 105 employees and a skilled 34-member technical team supported by four laboratories, Anlon combines strong R&D, quality systems, and global regulatory compliance to position itself as a reliable API and intermediates manufacturer.

IPO Synopsis:

Objective of the Issue:

• Funding capital expenditure for proposed expansion: ₹30.71 crores allocated towards expanding manufacturing capacity and upgrading facilities to support future growth.
• Repayment/prepayment of borrowings: ₹ 5 crores earmarked for reducing outstanding secured term loans, thereby strengthening the balance sheet.
• Working capital requirements: ₹43.15 crores dedicated to supporting day-to-day operations, inventory, and business growth needs.
• General corporate purposes: Balance of the proceeds to be utilized for strategic and operational needs, enhancing overall business efficiency.

Risks:

• Quality and Technical compliance risk: Since the company serves customers with highly specific requirements, any deviation in quality or technical standards may damage client relationships, resulting in potential business losses.
• Customer concentration risk: A significant 75-80% of revenue comes from the top 10 clients. Despite high customer stickiness, any demand fluctuations from these key accounts could materially impact revenue stability.
• Geographic and operational concentration risk: The Company’s revenues are largely India-centric, with operations concentrated in a single manufacturing facility at Rajkot, Gujarat. Any disruption—operational, regional, or regulatory—could adversely affect its business continuity.
• Financial performance risk: While revenues and profits have grown, the company has a relatively shorter operational track record. Moreover, declining trends in return ratios like ROE and ROCE over the past three years raise concerns about long-term efficiency.

Strengths:

• Strong product portfolio and scalable business: The Company offers a diversified range of pharma intermediates and APIs, with 65 commercialized products and 28 products which at pilot stage, its scalable operations enable sustained growth and adaptability to evolving industry demands. The company manufactures loxoprofen sodium dehydrate which is a notable API developed by very few manufacturers in India.
• Strong Promoters and Experienced Management Team: Backed by visionary promoters and an experienced leadership team, their industry knowledge and consistent track record drive innovation, business expansion, and long-term customer relationships, strengthening overall market positioning.
• High entry and exit barriers due to long customer approval cycles and strict product standards: The pharmaceutical industry involves lengthy approval processes, stringent regulatory compliance, high gestation period and high switching costs. These factors create strong entry and exit barriers, reducing competition and ensuring customer stickiness. The company leverages this advantage to build long-term, stable contracts with global customers.
• In-house Testing, Quality Control and Quality Assurance for quality control: With dedicated laboratories and advanced testing infrastructure (4 testing labs), the company ensures stringent quality control across its product portfolio. Robust quality assurance systems maintain compliance with international pharmacopeia standards, enhancing reliability, trust, and customer satisfaction while reducing risks of product recalls or compliance-related disruptions.
• Focus on Quality, Environment, Health and Safety: Continuous monitoring, safe handling practices, and eco-friendly operations not only ensure regulatory compliance but also build stakeholder trust, reduce risks, and position the company as a responsible industry player.

Financial Snapshot (Rs. In Crores):

• Anlon Healthcare’s revenue shows sharp fluctuations, falling 41% in FY24 after a strong FY23, before recovering 16% in FY25. This volatility highlights demand instability and reliance on specific segments, raising concerns about sustainability and the need for diversified, steady growth drivers.
• Operating performance remains resilient despite revenue swings, with EBITDA steadily rising from ₹12.64 crore in FY23 to ₹17.48 crore in FY25. Margins nearly doubled to 22.6%, reflecting efficiency gains, prudent cost controls, and improved product mix supporting long-term profitability.
• Profitability has strengthened consistently, with PAT growing from ₹5.82 crore in FY23 to ₹11.96 crore in FY25. Net margins improved from 5.1% to 15.5%, signaling strong cost management and the company’s ability to convert operational gains into bottom-line strength.
• Return ratios, however, are weakening. ROE declined sharply from 79% in FY23 to 16.6% in FY25, while ROCE moderated to 13%. This indicates capital efficiency challenges, possibly from a growing equity base, and signals the need for sharper financial deployment strategies.