The Indian pharmaceutical industry continues to attract investors with its strong growth trajectory, robust export potential, and increasing demand for healthcare products. Riding on this momentum, Amanta Healthcare Limited has launched its Initial Public Offering (IPO), giving investors a fresh opportunity to participate in India’s expanding pharma sector.
This blog provides a detailed look at Amanta Healthcare, its business model, financial performance, IPO details, valuations, and whether it can be a good bet for long-term investors.
About Amanta Healthcare
Amanta Healthcare Limited is a Gujarat-based pharmaceutical company specializing in the manufacturing of sterile liquid products. It is particularly known for its expertise in:
- Parenterals (injectable solutions) – both Small Volume Parenterals (SVPs) and Large Volume Parenterals (LVPs).
- Use of advanced technologies such as Aseptic Blow-Fill-Seal (ABFS) and Injection Stretch Blow Moulding (ISBM).
- Manufacturing of medical devices in addition to pharmaceutical products.
The company has a broad product portfolio of more than 45 pharmaceutical products, distributed through 320+ distributors across India. It also exports its products to 21 countries, including major markets in Africa, Latin America, and Europe.
This combination of domestic presence and global outreach gives Amanta Healthcare a balanced business model that is less dependent on any single market.
Strengths of the Company
Amanta Healthcare stands out in the pharmaceutical manufacturing space due to several competitive advantages:
- Strong Manufacturing Capabilities
- State-of-the-art facilities with compliance to stringent regulatory norms.
- Specialization in sterile manufacturing, which is a high-barrier segment.
- Diversified Product Portfolio
- Covers both essential medicines and specialized injectable therapies.
- Balanced presence in SVPs and LVPs ensures wider applicability in hospitals and clinics.
- Global Market Reach
- Presence in emerging and regulated markets provides export-driven revenue.
- Growth opportunities in Africa and Latin America, where demand for affordable healthcare is rising.
- Experienced Management
- Leadership with decades of experience in pharma manufacturing and exports.
- Rising Demand for Parenterals
- Increasing global demand for injectable therapies and IV solutions post-COVID.
- Hospitals are relying more on sterile packaged solutions for safety and convenience.
Risks and Challenges
While Amanta Healthcare has strong fundamentals, it faces some challenges:
- Intense Competition: The Indian pharma market is crowded with established players.
- Regulatory Risks: Compliance with stringent international norms (like US FDA, EU GMP) is mandatory.
- Margin Pressure: Raw material costs and pricing controls in India can affect profitability.
- Forex Risks: Since exports form a significant share, currency fluctuations impact revenues.
Financial Performance
Amanta Healthcare’s financials indicate consistent growth in recent years, reflecting both domestic and export strength.
- Revenue Growth: The company has shown healthy topline expansion, driven by rising demand for sterile injectables.
- Profitability: Operating margins are stable, supported by efficient manufacturing processes.
- Debt Levels: Relatively moderate, giving the company room to fund expansions.
- Return Ratios: ROE and ROCE are competitive compared to other mid-sized pharma peers.
(Note: Investors should check the latest IPO prospectus for exact financial figures.)
Amanta Healthcare IPO Details
Here are the key details of the IPO:
- IPO Opening Date: September 1, 2025
- IPO Closing Date: September 3, 2025
- Price Band: ₹336 – ₹352 per share
- Lot Size: 42 shares per lot
- Issue Size: ₹1,100 crore (approx.)
- Fresh Issue: Around ₹800 crore (for debt repayment, capacity expansion, and working capital)
- Offer for Sale (OFS): Around ₹300 crore (promoter selling stake)
- Listing: NSE and BSE
- Expected Listing Date: September 8, 2025
Objective of the IPO
Amanta Healthcare plans to utilize the funds raised from the IPO in the following manner:
- Debt Repayment: Reducing leverage to improve financial flexibility.
- Capacity Expansion: Setting up new manufacturing lines to meet increasing demand.
- Working Capital Needs: Supporting export growth and domestic distribution expansion.
- General Corporate Purposes: Strengthening R&D and technology investments.
Grey Market Premium (GMP) Trends
The Grey Market Premium (GMP) is an informal indicator of market demand for an IPO before listing.
- Reports suggest that Amanta Healthcare IPO was trading at a GMP of around ₹50–60 per share over the upper price band.
- This implies a potential listing gain of 15–18%, although GMP is not always a guarantee of actual performance.
Subscription Status
The IPO witnessed healthy subscription across categories:
- Qualified Institutional Buyers (QIBs): Strong response due to the company’s growth prospects.
- Non-Institutional Investors (NIIs): Oversubscribed, reflecting confidence in medium-term returns.
- Retail Investors: Subscribed multiple times, showing high interest among small investors.
Overall, the IPO saw robust demand, signaling strong investor appetite.
Valuation Analysis
When compared to listed pharma peers such as Gland Pharma, Aurobindo Pharma, and Laurus Labs, Amanta Healthcare appears reasonably priced.
- Price-to-Earnings (P/E): In line with mid-cap pharma companies.
- Price-to-Book (P/B): Balanced, considering its strong asset base.
- EV/EBITDA: Attractive relative to peers in the sterile manufacturing segment.
While the IPO is not cheap, its valuation looks fair given the company’s growth visibility.
Should You Invest in Amanta Healthcare IPO?
Reasons to Consider Investing:
- Exposure to a niche segment (sterile injectables) with high entry barriers.
- Strong export footprint across 20+ countries.
- Healthy financial growth and profitability.
- Robust demand outlook for IV solutions and injectables.
- Attractive GMP and subscription numbers indicating strong listing potential.
Things to Keep in Mind:
- Competition from bigger players like Gland Pharma.
- Regulatory hurdles in global markets.
- IPO valuation, while fair, leaves limited margin for error.
Verdict:
Amanta Healthcare IPO seems suitable for investors looking for medium to long-term gains. While listing gains are possible, the real story lies in its capacity expansion and export-led growth, which could deliver value in the coming years.
Future Outlook
The long-term growth of Amanta Healthcare will depend on:
- Expanding Manufacturing Capacity: Scaling up production to meet rising global demand.
- Innovation: Developing new formulations and devices for export markets.
- Regulatory Approvals: Entering regulated markets like the US and EU.
- Sustainability: Focus on cost efficiency, energy use, and environmentally friendly packaging.
If executed well, Amanta Healthcare has the potential to evolve from a mid-sized player into a significant name in the Indian and global pharma industry.
Conclusion
The Amanta Healthcare IPO offers a unique opportunity for investors to participate in the high-growth sterile injectables market. With strong fundamentals, an expanding global footprint, and healthy investor interest, the IPO has created a buzz in the market.
For investors with a long-term perspective, this IPO could be a worthwhile addition to their portfolios. However, as with all investments, it is advisable to consider individual risk appetite, consult financial advisors, and not base decisions solely on listing expectations.