Corona Remedies
IPO Size: Rs. 655 cr, Entirely Offer for Sale (OFS)
- 65% of OFS by 3 investors, mainly ChrysCapital (trimming 27% combined stake to 21%, part-exiting 5-year-old investment at 23% IRR)
- 35% by the promoter (73% stake to shrink to 69% post IPO)
Price band: Rs. 1,008-1,062 per share
M cap: Rs. 6,492 cr, implying 10% dilution
IPO Date: Mon 8th Dec to Wed 10th Dec 2025, Listing Mon 15th Dec 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
India’s 29th Largest Branded Pharma Company
Corona Remedies is a 21-year-old Ahmedabad-based India-focused branded pharmaceutical formulation company, engaged in therapeutic areas of women’s healthcare (30% of revenue), cardio-diabeto (23%), pain management (12%), urology (5%). For its covered markets, Corona is the 17th largest pharma company in India, 6th largest in fats growing women’s health and 5th in pain management (analgesics). It has a pan-India network of 2,671 medical representatives and 2,000+ distributors.
Huge Capital Work in Progress (CWIP)
2 plants in Gujarat and Himachal, have an aggregate installed capacity of 28 cr units pa. A greenfield hormone plant in Gujarat is likely to be operational in Q1FY27E, which is represented by Rs. 200 cr CWIP as of 30.6.25. This is sizeable, given Rs. 200 cr net fixed assets as on 30.6.25. For backward integration of the upcoming hormone plant, Corona Remedies has invested in a hormone API company La Chandra Pharmalab.
Topline Doubled in last 3 years
FY22 revenue of Rs. 617 cr nearly doubled to Rs. 1,196 cr in FY25, led by inorganic growth. In the last 8 years, Corona has acquired many brands from Sanofi, Abbott, GlaxoSmithKline, with Sanofi’s pain management brand Myoril, acquired in 2023, growing 3x+ in 2.5 years, and is now Corona’s #2 brand. Thus, Corona Remedies’ has demonstrated ability to scale up brands quickly.
Double Digit Margins
While gross margin is at 80%, EBITDA is at 20%, with PAT of 13%. PAT stood at Rs. 149 cr for FY25 and is already at Rs. 46 cr for Q1FY26, translating into an EPS of Rs. 24 and Rs. 7.6 respectively, on an equity of Rs. 61 cr (face value Rs. 10 each). On net worth of Rs. 607 cr, company is debt-free with cash surplus of Rs. 12 cr.
Attractive for Long Term
M cap of almost Rs. 6,500 cr, implies a PE multiple of about 35x, based on Q1FY26 annualised earnings. Similar sized pharma MNCs like Pfizer and Sanofi, with double digit net margins but poor growth and trading at 28-32x PE. For larger pharma players, PE multiples range from 18x to 50x, varying with size, margins, growth and product profile. Thus, IPO pricing in near term looks inline.
Commissioning of new hormone facility by Q1FY27E makes next fiscals outlook promising. This in combination with 20%+ topline growth, double digit margin and 30% RoE make Corona Remedies attractive for the long term.
8th Dec 2025 at 07:29 pm
8th Dec 2025 at 05:50 pm
8th Dec 2025 at 07:40 am