Homegrown private equity firm ChrysCapital-backed pharma company Corona Remedies has picked three investment banks to start work on a proposed IPO, which will see the company raise as much as Rs 1,500 crore-2,000 crore, people aware of the matter told Moneycontrol.
Corona Remedies manufactures branded generic pharma products catering to therapeutic areas of women's health, metabolic disorders, urology disorders, neuropathy management and pain management. The company operates two manufacturing units, one in Solan, Himachal Pradesh and another in Bavla, Ahmedabad
ChrysCapital acquired a 27.5 percent stake in the company in 2021 for an investment of Rs 670 crore. The remaining stake is held by the company’s promoters.
“The company has kicked off its proposed IPO with investment banks JM Financial, Kotak Mahindra Capital and IIFL as its advisors. The draft IPO papers are likely to be filed in the first quarter of calendar year 2025,” said one of the people cited above.
“The IPO will be a mix of primary and secondary share sale. ChrysCapital will sell a part of its stake,” the person added.
Emails sent to Corona Remedies did not elicit a response till the time of publication. ChrysCapital declined to comment.
Corona Remedies' business
For the first half of FY25 Corona Remedies reported a revenue of Rs 614.4 crore and a profit of Rs 64 crore, as per a report by Care Ratings.
In FY24, the company had recorded a revenue of Rs 1,014.96 crore and a profit of Rs 156.43 crore.
The credit rating firm noted that Corona Remedies’ revenue has grown at a healthy compounded annual growth rate of around 21 percent in the last three years ended FY24.
“The company’s growth over the years has been supported by penetration of the existing brands and expansion in the product portfolio through acquisition and new brand launches. The company continues to exhibit healthy growth in the chronic segments like gynaecology, cardiovascular system, vitamins/nutrients, hormones, gastroenterology and diabetology among others. Corona Remedies has a healthy gross margin of approximately 70-80 percent,” the report said.
Last year, Corona Remedies acquired leading muscle relaxant brand Myoril from Sanofi India, for Rs 234 crore.
As per the Care Ratings report, Corona Remedies has a wide portfolio of over 580 products with 71 brands. Its top five therapeutic segments contributed almost 79 percent of net sales in FY24. Close to 50-60 percent of its revenue is derived from the chronic segment with the balance from the acute segment.
ChrysCapital's pharma and healthcare investments
The Indian pharmaceutical and healthcare sector has been a focus area of investments for ChrysCapital.
Its marquee investments in the pharma sector over the years include Intas Pharma, Mankind Pharma, Eris Lifesciences, Zydus Cadila, Torrent Pharma and Ipca Labs.
Earlier this year in April, ChrysCapital invested $70 million in Ahmedabad based La Renon Healthcare.
In May, the PE firm invested up to $100 million in New Delhi Centre for Sight, an eye care chain.
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