Corona Remedies IPO Day 2: Issue bid 9.96x by end of Day 2; GMP suggests strong listing - should you buy?

Corona Remedies IPO Day 2: Pharma company Corona Remedies opened its initial public offering (IPO) for public subscription on Monday, December 8, with the issue scheduled to close on Wednesday, December 10.

The IPO carries a price band of ₹1,008– ₹1,062 per equity share. For retail participants, the minimum application size is one lot containing 14 shares, translating into a ₹14,868 investment at the upper price limit. Applications can be submitted in multiples of 14 shares thereafter.

Corona Remedies IPO Details

This ₹655.37 crore public issue is structured entirely as an offer for sale (OFS) of 0.62 crore shares, with no fresh equity being issued. Existing shareholders — including Sepia Investments, Anchor Partners and Sage Investment Trust — are set to pare part of their stake. As the IPO is a pure OFS, the company itself will not receive any proceeds from the offer.

The basis of allotment is expected to be finalised on Thursday, December 11. Successful bidders are likely to receive shares in their demat accounts on Friday, December 12, and refunds for non-allottees will also be processed the same day. The stock is slated to list on BSE and NSE on Monday, December 15.

Ahead of the opening, Corona Remedies mobilised ₹194.85 crore through its anchor book, drawing participation from 15 institutional investors, including SBI Mutual Fund, ICICI Prudential MF, Kotak Mahindra AMC, Axis MF, among others.

The issue has allocated 35% of shares for retail investors, 50% for qualified institutional buyers (QIBs), and 15% for non-institutional investors (NIIs). JM Financial, IIFL Capital and Kotak Capital are acting as the book-running lead managers, while Bigshare Services serves as the registrar.

Corona Remedies IPO GMP Today

Investor interest appears upbeat, with the grey market premium (GMP) at ₹270 on December 10. This premium implies a potential listing price of around ₹1332, signalling a 25.42% upside over the upper IPO price of ₹1,062. The grey market premium reflects the additional price investors are willing to pay over the official issue price.

Subscription Status on Day 1

By end of Day 2, the IPO had received strong subscribed - 9.96 times overall.

The retail category stood at 6.90x.

The NII segment saw subscriptions of 28.37x.

The employee quota was subscribed 4.37x.

However, the QIB portion had received 1.76x bids till then.

In total, the company received bids for 431.77 crore shares against the 43.36 lakh shares on offer.

Should You Subscribe?

Brokerage firm Choice Broking noted that at the upper end of the price band, CRL is valued at a P/E multiple of 43.5 times, based on its FY25 EPS of ₹24.4, and an EV/Sales multiple of 5.5 times, making the issue appear fully priced compared to peers. The brokerage said the company has delivered steady revenue and profit growth, supported by healthy margins. It highlighted that nearly 70% of CRL’s revenue comes from chronic therapies, which typically offer high margins and strong prescription stickiness.

According to Choice Broking, CRL’s emphasis on chronic segments such as women’s healthcare, cardiology, and diabetes continues to offer long-term growth visibility. The firm added that recent acquisitions have strengthened CRL’s foothold in key chronic categories and enhanced growth visibility. It also pointed out that the company’s IPM ranking has climbed from 37th to 29th, underscoring its expanding scale and competitiveness.

While valuations appear rich, Choice Broking believes the company’s sustainable business model and long-term prospects justify a positive view, stating that these factors support a “Subscribe for Long Term” recommendation.

About Corona Remedies

Corona Remedies, headquartered in Gujarat, operates as a pharmaceutical manufacturer with offerings across women’s health, cardio-diabetes, pain management, urology, and several additional therapeutic categories. The company runs two manufacturing facilities — one located in Gujarat and the other in Himachal Pradesh.

According to the RHP, the company reported a net profit of ₹46.19 crore for Q1 FY26, following a full-year net profit of ₹149.43 crore in FY25. Revenue from core operations reached ₹346.54 crore in the second quarter of FY26, while total revenue for FY25 stood at ₹1,196.41 crore.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.