The initial public offering of Corona Remedies saw strong investor interest during its third and final day of public bidding on December 10. The Rs 655-crore maiden issue of the company closed after being subscribed more than 137 times its offer size on Day 3.
The IPO received bids for more than 62.65 crore shares, as against the offer size of 45.72 lakh shares, according to data on NSE. Non Institutional Investors (NII) have subscribed their reserved portion 209 times (20,888 percent).
Retail investors booked their allotted quota around 29 times (2,873 percent), while Qualified Institutional Buyers (QIB) have subscribed their reserved portion a whopping 278 times (27,852 percent).
Corona Remedies IPO GMP:
Ahead of listing, the unlisted shares of the company were trading with 29.94 percent grey market premium (GMP) over the IPO price, according to data on Investorgain.
According to IPO Watch, the unlisted shares of the company were trading with 25.42 percent GMP over the IPO price.
About Corona Remedies IPO:
Corona Remedies launched its IPO to raise more than Rs 655 crore through an entirely offer for sale (OFS) of shares with no fresh issue component. This means that all of the IPO proceeds will go the selling investors and not the company.
The price band for the IPO was set at Rs 1,008-1,062 per share. Investors could bid for a minimum of 14 shares, requiring an investment of Rs 14,868 per lot, and in multiples thereafter. The IPO was open for public bidding between December 8 and December 10. The allotments are likely to be finalized by December 11, and the shares are scheduled to be listed on stock exchanges BSE and NSE on December 15.
Should you apply for Corona Remedies IPO?
Corona Remedies IPO is entirely an offer-for-sale, which means that the market will look at the issue solely from a fundamental perspective, that is how strong the margins are, how deep the product portfolio is, and how consistent the growth is, said Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd.
"The company boasts a decent presence in the leading therapeutic areas, however, its profit figures are lower than those of some of its competitors," the analyst said. He added that investors should position this offering as one in the pharma sector that will generate steady returns over time instead of that which can bring quick profits.
With a strong base in chronic and sub-chronic therapies, a focus on specialists, Corona Remedies is strategically positioned to capitalize on the sustained growth of India’s pharmaceutical sector and strengthen its leadership within the domestic market, said Master Capital Services. It advised investors to consider the IPO as a potential long-term investment opportunity.
"Overall, Corona Remedies presents a compelling opportunity for investors seeking exposure to high growth therapies, a scalable distribution network, margin expansion potential, and disciplined capital allocation. Its strong fundamentals and favorable positioning support a constructive view on the IPO," said Abhinav Tiwari, Research Analyst at Bonanza.
The decent grey market premium suggests confidence in the company’s pharmaceutical portfolio, especially in select therapy areas where branded formulations have maintained steady demand, said Kalp Jain, Research Analyst, INVasset PMS.
"The company’s presence across chronic and acute therapies, combined with a credible brand footprint among healthcare practitioners, has helped sentiment ahead of listing. However, the valuations implied by the GMP set high expectations for post-listing performance. Investors will closely track margin delivery, portfolio expansion and operational discipline as key determinants. If market conditions remain supportive, the debut is likely to reflect robust demand, but sustained traction will depend on steady execution in a competitive sector," he added.
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