The initial public offering (IPO) of Gujarat-based pharmaceutical firm Corona Remedies commenced its subscription period for public investors today, December 8. The issue, which is a complete offer for sale (OFS) by existing shareholders, aims to raise ₹655.37 crore and will remain open until Wednesday, December 10.
IPO Details and Key Dates for Investors
Investors can bid for shares in the Corona Remedies IPO within a price band of ₹1,008 to ₹1,062 per equity share. The minimum application size for retail investors is one lot comprising 14 shares. This translates to a minimum investment of ₹14,868 at the upper price band. All bids must be placed in multiples of this lot size.
The ₹655.37 crore issue involves the sale of 0.62 crore shares. Since it is a pure OFS, the company will not receive any fresh capital from the offering. The selling shareholders include entities like Sepia Investments, Anchor Partners, and Sage Investment Trust.
The allotment of shares is expected to be finalized on Thursday, December 11. Successful applicants will likely get their shares credited on Friday, December 12, with refunds also processed on the same day for unsuccessful bids. The equity shares of Corona Remedies are scheduled to make their stock market debut on both BSE and NSE on Monday, December 15.
Strong Investor Sentiment and Brokerage View
Ahead of the public opening, the company secured ₹194.85 crore from 15 institutional investors via the anchor book. Prominent participants included SBI Mutual Fund, ICICI Prudential MF, Kotak Mahindra AMC, and Axis MF.
Market sentiment appears bullish, reflected in the grey market premium (GMP). On the first day of subscription, the Corona Remedies GMP was ₹290. This grey market premium suggests the stock could list at around ₹1,352, a potential premium of 27.31% over the upper IPO price of ₹1,062.
Brokerage firm Anand Rathi has assigned a 'Subscribe for long term' rating to the IPO. It acknowledged that the issue appears fully priced at a P/E of 35.3 times based on annualised FY26 earnings and a post-issue market cap of approximately ₹6,495.2 crore. However, the brokerage highlighted the company's strong positioning for sustained growth.
"The business is well positioned to sustain above-industry growth, supported by a strong brand portfolio, leadership in key therapies, and consistent strategic execution," Anand Rathi noted. It pointed out the company's impressive 16.77% CAGR, which is the second fastest among the top 30 Indian pharma players, driven by chronic therapies and new launches.
About Corona Remedies and Financials
Corona Remedies is an integrated pharmaceutical company with a portfolio focusing on key therapeutic areas such as:
- Women’s healthcare
- Cardio-diabetes
- Pain management
- Urology
The company operates two manufacturing facilities located in Gujarat and Himachal Pradesh. According to its red herring prospectus (RHP), Corona Remedies reported a net profit of ₹46.19 crore for the April-June quarter of FY26. For the full financial year 2024-25 (FY25), it posted a net profit of ₹149.43 crore.
Its revenue from operations stood at ₹346.54 crore in Q2 FY26, while the total revenue for FY25 was ₹1,196.41 crore.
Issue Structure and Key Intermediaries
The IPO allocation is reserved as follows:
- 50% for Qualified Institutional Buyers (QIBs)
- 35% for Retail Individual Investors (RIIs)
- 15% for Non-Institutional Investors (NIIs)
The book-running lead managers for the issue are JM Financial, IIFL Capital, and Kotak Mahindra Capital Company. The registrar to the issue is Bigshare Services.
Disclaimer: The views and recommendations mentioned are from individual analysts or broking firms. Investors are strongly advised to consult with certified experts before making any investment decisions.
