Pharmaceutical firm Corona Remedies has launched its IPO, a Rs 655.37 crore Offer for Sale (OFS) with a price band of Rs 1,008–Rs 1,062. As an OFS, proceeds go to existing shareholders, not the company.
The IPO of Gujarat-based pharma company Corona Remedies opened for subscription today (December 8), drawing significant attention from investors thanks to its strong market presence and solid grey market buzz. The public issue will remain open until December 10.
A High-Priced IPO: With No Fresh Issue
The company has set its price band at Rs 1,008–Rs 1,062 per share. Retail investors can apply for a minimum of 14 shares, meaning they need to invest Rs 14,868 at the upper band.
The entire Rs 655.37 crore issue is an Offer for Sale (OFS), meaning the company itself will not receive any funds. Instead, existing shareholders such as Sepia Investments, Anchor Partners and Sage Investment Trust will offload part of their stake.
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Strong Start: Anchor Investors Pump In Rs 195 Crore
Ahead of the IPO, Corona Remedies mopped up Rs 194.85 crore from 15 prominent institutional investors, including:
- SBI Mutual Fund
- ICICI Prudential MF
- Kotak Mahindra AMC
- Axis MF
This early vote of confidence has added momentum to the IPO's opening day.
Who Gets How Much?
Of the total issue size:
- 50% is reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for retail applicants
IPO Timeline
- Allotment date: December 11
- Refunds & share credit: December 12
- Listing on BSE & NSE: December 15
- GMP Signals a Strong Listing
The IPO is seeing upbeat sentiment in the grey market — with a GMP of Rs 290 on December 8.
If this holds, Corona Remedies could debut around Rs 1,352 per share, translating to a 27% premium over the upper issue price of Rs 1,062.
Should You Subscribe?
Brokerage Anand Rathi has given the IPO a “Subscribe for long term” rating.
Here's why:
Corona Remedies is among the fastest-growing pharma players, with a 16.77% CAGR, outperforming the broader Indian pharmaceutical market.
It has strong traction in chronic and sub-chronic therapies, which typically ensure stable long-term demand.
The company has a robust product pipeline and a leadership position in key therapeutic areas.
However, it's not cheap.
The company is asking for a valuation of:
- P/E: 35.3x (FY26 annualised)
- Market cap: ~Rs 6,495 crore post-listing
This makes the IPO fully priced, analysts say. But given the company's growth visibility and strategic positioning, they believe it still holds promise for long-term investors.
What the Company Does
Corona Remedies operates across major therapeutic areas, including:
- Women's healthcare
- Cardio-diabetes
- Pain management
- Urology
- And other chronic care segments
It has two manufacturing facilities, one in Gujarat and another in Himachal Pradesh.
Financially, the company has been delivering consistent growth:
- Net profit (Q1 FY26): Rs 46.19 crore
- Net profit (FY25): Rs 149.43 crore
- Revenue (Q2 FY26): Rs 346.54 crore
- Total revenue (FY25): Rs 1,196.41 crore
