CORONA REMEDIES LIMITED IPO Explain

Corona Remedies IPO Overview

Gujarat-based branded pharma company raising ₹655.37 cr via 100% OFS of 61.71L shares. Price: ₹1,008-1,062. Lot: 14 shares (₹14,868 min). MAINBOARD BSE/NSE. No fresh issue – all proceeds to selling shareholders.

Founded 2004, 21 years old. 2nd fastest growing in top 30 IPM (16.77% CAGR vs 9.21%).

71 brands: Women’s healthcare (28.56%), Cardio-diabeto (23.38%), Pain (11.79%), Urology. B-29, Myoril, Tricium top brands. 2,671 medical reps, 22 states, 2 Gujarat plants, 1,285M units capacity.

Lead: JM, IIFL, Kotak.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	Mainboard
IPO Open Date	8 December 2025 (Sunday)
IPO Close Date	10 December 2025 (Tuesday)
Anchor Investor Date	5 December 2025 (Thursday) – Completed
Allotment Date	11 December 2025 (Wednesday) – Expected
Credit to Demat	12 December 2025 (Thursday) – Expected
Refund Initiation	12 December 2025 (Thursday) – Expected
Listing Date	15 December 2025 (Monday) – Tentative
Price Band	₹1,008 – ₹1,062 per share
Face Value	₹10 per share
Lot Size	14 shares
Min Investment (Retail)	₹14,868 (1 lot / 14 shares at upper band)
sHNI Investment	TBD
bHNI Investment	TBD
Issue Size	₹655.37 crore total (at upper band)
Fresh Issue	NIL – 0% fresh issue
Offer for Sale (OFS)	₹655.37 crore (100% OFS) – 61,71,101 equity shares
Total Shares Offered	61,71,101 equity shares (61.71 lakh)
Listing	BSE & NSE (MAINBOARD – Not SME!)
Post-Issue Market Cap	~₹6,500+ crore (estimated)
P/E Ratio	43.47x (Post-issue based on annualized Q1 FY26 earnings)
EPS	Pre-issue: Higher, Post-issue: Diluted
ROE	33.50% (FY25) – Excellent!
ROCE	41.32% (FY25) – Very strong!

Issue Break-up

Category	Allocation	Percentage
QIB (Qualified Institutional Buyers)	50% allocation	50%
NII (Non-Institutional Investors)	15% allocation	15%
Retail Individual Investors	35% allocation	35%

Note: Mainboard IPO allocation (50% QIB, 35% Retail, 15% NII). Anchor round completed on Dec 5.

Objects of the Issue (Fund Utilization)

This is a 100% Offer for Sale (OFS) – NO FRESH ISSUE:

Company receives ZERO proceeds from this IPO
All ₹655.37 crore goes to selling shareholders
This is purely an exit opportunity for existing promoters and investors

OFS Sellers (₹655.37 crore):

Promoter Selling Shareholders:
- Dr. Kirtikumar Laxmidas Mehta – Founder & Chairman
- Minaxi Kirtikumar Mehta – Promoter
- Dipabahen Niravkumar Mehta – Promoter
- Brinda Ankur Mehta – Promoter
Investor Selling Shareholders:
- Sepia Investments – Early investor
- Anchor Partners – PE/VC investor
- Sage Investment Trust – Institutional investor

Strategic Implication:

100% OFS = Red flag for some investors – existing shareholders cashing out, company gets no capital for growth
Purely a liquidity event for promoters and early investors
Company must rely on internal accruals and debt for future growth
No funds for capacity expansion, R&D, marketing, or debt repayment
However: Strong companies can use OFS for listing while retaining operational flexibility

Stated Purpose of Listing (from RHP):

Achieve benefits of listing equity shares on stock exchanges
Provide liquidity and exit to existing shareholders
Enhance brand image and visibility
Attract and retain talent through ESOP plans
Facilitate future fundraising if needed

Lead Managers & Registrar

Book Running Lead Managers (BRLMs – 3 Joint Lead Managers):

JM Financial Limited – Marquee lead manager
IIFL Capital Services Limited – Major player
Kotak Mahindra Capital Company Limited – Top-tier banker

Registrar:

Bigshare Services Private Limited
Phone: 022 – 6263 8200
Email: [email protected]
Website: www.bigshareonline.com

Promoters & Management

Key Promoters (3 Promoters – Mehta Family):

Dr. Kirtikumar Laxmidas Mehta – Founder, Chairman & Managing Director
- Founded company in August 2004 (21 years ago)
- Visionary behind Corona Remedies’ growth
- Selling shares in OFS – Partial exit
Niravkumar Kirtikumar Mehta – Whole-Time Director & CEO
- Son of founder, second-generation leadership
- Executive Director driving operations
Ankur Kirtikumar Mehta – Whole-Time Director
- Son of founder, family member in management
- Executive role in company

Company History:

Founded August 2004 (21 years old)
Registered Office: Ahmedabad, Gujarat
Evolution: From small pharma to 2nd fastest growing in top 30 IPM companies
Market Position: Among top 30 Indian Pharmaceutical Market (IPM) companies by domestic sales
Growth Trajectory: CAGR 16.77% (Jun 2022-Jun 2025) vs IPM CAGR 9.21% – 1.82x faster than industry
Brand Portfolio: 71 brands as of June 30, 2025 (expanded from 67 brands in Dec 2024)
Manufacturing: 2 facilities in Gujarat with 1,285.44 million units per annum installed capacity
Field Force: 2,671 medical representatives across 22 states (as of June 30, 2025)
R&D Team: 88 R&D employees (as of December 31, 2024)

Company Contact:

Registered Office: Ahmedabad, Gujarat
Manufacturing Facilities: Gujarat (2 plants)
Website: www.coronaremedies.com (likely)

COMPANY OVERVIEW

Establishment & Background:

Founded in August 2004 (21 years old)
Industry: Branded Pharmaceutical Formulations – India-focused
Headquarters: Gujarat
Market Leadership: 2nd fastest growing among top 30 Indian Pharmaceutical Market (IPM) companies by domestic sales (MAT June 2022 – June 2025)
Growth Rate: 16.77% CAGR vs IPM CAGR 9.21% – 1.82x faster than industry
Recent: Fastest growing among top 30 IPM companies from MAT June 2024-June 2025 at 13.58% CAGR vs IPM 7.90%

Business Model:

Branded Pharmaceutical Manufacturer focused on chronic and sub-chronic therapies
Four Core Therapeutic Areas (68.26% of domestic sales, growing at 22.40% CAGR):
1. Women’s Healthcare (28.56% of sales):
  - Gynecological products, fertility treatments
  - Contraceptives, menstrual health
  - Menopause management
2. Cardio-Diabeto (23.38% of sales):
  - Cardiovascular medications (anti-hypertensives, anti-coagulants)
  - Anti-diabetic drugs (insulin sensitizers, DPP-4 inhibitors)
  - Lipid management
3. Pain Management (11.79% of sales):
  - Analgesics, NSAIDs
  - Muscle relaxants
  - Anti-inflammatory drugs
4. Urology (4.53% of sales):
  - Benign prostatic hyperplasia (BPH) treatments
  - Urinary tract infection management
Other Therapeutic Areas (31.74% of sales):
Multispecialty Pharmaceuticals:
- Vitamins/Minerals/Nutrition (VMN)
- Gastrointestinal medications
- Respiratory care
Brand Portfolio (71 brands as of June 30, 2025):

27 “Engine” brands generate 72%+ of domestic sales (MAT June 30, 2025)
Top Brands:
- B-29: ₹100+ crore annual revenue – largest brand
- Myoril, Tricium, Cortel, Obimet, Rosuless: Major contributors
- Market Leaders: Myoril, COR, Trazer hold #1-#3 positions in their respective sub-groups
Manufacturing Infrastructure:

2 facilities in Gujarat with total installed capacity: 1,285.44 million units per annum
11 production lines (as of June 30, 2025)
Quality and cGMP-focused facilities
Strong R&D capabilities (88 R&D employees)
Sales & Distribution:

2,671 medical representatives across 22 states (June 30, 2025)
Pan-India marketing and distribution network
Deep penetration in target therapeutic areas
Direct engagement with doctors, specialists, hospitals
Target Markets:

100% domestic focus – India market
High-growth chronic therapies: 20.48% CAGR (vs IPM 10.08%)
Low NLEM exposure: 9.76% of sales under NLEM 2022 vs 17.51% IPM average = greater pricing flexibility

Market Position:

2nd fastest growing in top 30 IPM companies (MAT June 2022-2025)
Fastest growing in top 30 IPM (MAT June 2024-2025)
Indian pharmaceutical market: USD 50+ billion, growing at 10-12% CAGR
Competing with giants and specialized players:
- Large Cap: Abbott India, Mankind Pharma, Alkem Labs, Lupin, Dr Reddy’s, Cipla, Sun Pharma
- Mid Cap: Laurus Labs, Glenmark, Torrent Pharma
Differentiation: Focus on chronic/sub-chronic therapies in women’s health, cardio-diabeto, pain with strong brand-building

Company Strengths

Explosive Growth – Revenue +17.9%, PAT +65.1% (FY24 to FY25)!:
- FY25 revenue: ₹1,196.4 cr (+17.93% vs ₹1,014.47 cr FY24)
- FY25 PAT: ₹149.43 cr (+65.11% vs ₹90.5 cr FY24) – nearly doubled profit!
- Q1 FY26: ₹346.54 cr revenue, ₹46.2 cr PAT – strong momentum continuing
- Alternative numbers: ₹1,202.35 cr revenue FY25 per some sources
- PAT margin expanding: 8.92% (FY24) → 12.49% (FY25) – significant improvement
- EBITDA: ₹245.92 cr FY25 (+52.56% vs ₹161.19 cr FY24)
Very Strong GMP (₹365) – 34.4% Expected Listing Gains!:
- GMP of ₹365 as of Dec 5, 2025 (34.4% premium!)
- Expected listing price: ₹1,427 vs issue price ₹1,062
- Earlier GMP: ₹60 (Nov), ₹290-300 (early Dec) → now ₹365 (strengthening)
- Very strong grey market enthusiasm
- One of highest GMPs in current IPO pipeline
- Institutional and retail confidence visible
2nd Fastest Growing in Top 30 IPM – Market Leadership:
- 16.77% CAGR (MAT June 2022-2025) vs IPM CAGR 9.21% = 1.82x faster than industry!
- Fastest growing among top 30 IPM (MAT June 2024-2025): 13.58% CAGR vs IPM 7.90%
- Per CRISIL Intelligence Report validation
- Consistent market share gains
- Outpacing industry giants in growth rate
Excellent Return Ratios – ROE 33.5%, ROCE 41.32%:
- ROCE: 41.32% (FY25) – exceptional return on capital employed
- ROE: 33.50% (FY25) – very strong return on equity
- Both metrics significantly above industry averages
- Efficient capital allocation and high profitability
- Demonstrates pricing power and operational excellence
Strong Brand Portfolio – 71 Brands, B-29 ₹100+ Cr Brand:
- 71 brands across therapeutic areas (June 30, 2025)
- 27 “engine” brands generate 72%+ of domestic sales
- B-29: Blockbuster brand with ₹100+ crore annual revenue
- Market leaders: Myoril, COR, Trazer ranked #1-#3 in respective sub-groups
- Diversified portfolio reduces single-brand risk
- Strong brand recall and doctor preference
Focus on High-Growth Chronic Therapies – Strategic Positioning:
- Chronic & sub-chronic therapies: 20.48% CAGR (MAT June 2022-2025) vs IPM 10.08%
- Core 4 areas (Women’s, Cardio-Diabeto, Pain, Urology): 22.40% CAGR – much higher than IPM
- Sticky revenue from chronic medications (repeat prescriptions)
- Lower NLEM exposure (9.76% vs IPM 17.51%) = better pricing flexibility
- Strategic bet on India’s aging population and lifestyle diseases
Pan-India Reach – 2,671 Medical Reps, 22 States:
- 2,671 medical representatives (June 30, 2025) – substantial field force
- Coverage across 22 states – deep penetration
- Direct engagement with doctors, specialists, hospitals
- Effective promotional reach
- Competitive moat through on-ground presence
Strong Financials – Dividend Paying, Lean Balance Sheet:
- Consistent dividend payments for reported periods
- Healthy balance sheet per analysts
- Low debt burden
- Strong cash generation
- Financial discipline and shareholder-friendly policies
Mainboard Listing – Higher Liquidity & Institutional Access:
- Listing on BSE & NSE Mainboard (not SME!)
- Higher liquidity, deeper market
- Access to large institutional investors (FIIs, DIIs, mutual funds)
- Potential future index inclusion (Nifty, Sensex if continues growth)
- Better valuation multiples vs SME listings
Analyst Recommendations – “Subscribe for Medium-Long Term”:

SBI Securities: “Subscribe” – citing healthy return ratios, lean balance sheet, in-line valuations
Arihant Capital: Positioned for “sustained multi-year growth”
Dilip Davda: “Fully priced but investors may lap it up for medium to long term”
Broad analyst support despite 100% OFS structure

Key Risks & Challenges

100% OFS – Company Gets ZERO Proceeds (Major Red Flag for Some):
- CRITICAL: This is 100% Offer for Sale – company receives NO money
- All ₹655.37 crore goes to selling promoters and investors (exit/liquidity)
- No fresh capital for:
  - Capacity expansion
  - R&D investments
  - Marketing and brand building
  - Debt repayment (if any)
  - Working capital
- Company must rely on internal accruals and debt for future growth
- Signals promoters/investors cashing out at peak valuations
- Questions: Why are they selling if growth is so strong?
Aggressive Valuation – P/E 43.47x vs Peers 33-54x:
- P/E 43.47x (post-issue, annualized Q1 FY26) – expensive
- Analyst Dilip Davda: “Issue appears fully priced“
- Peer comparison:
  - Abbott India: 54.28x (higher)
  - Mankind Pharma: 54.17x (higher)
  - Alkem Labs: 32.96x (lower)
- Moderate vs large caps but high vs mid-caps
- Limited margin of safety at current pricing
- Strong GMP (₹365) already pricing in growth – listing pop may be limited
Intense Competition – Pharma is Crowded Space:
- Competing with pharmaceutical giants:
  - Abbott India: ₹70,000+ cr market cap, MNC backing
  - Mankind Pharma: ₹1,50,000+ cr market cap, largest Indian pharma
  - Alkem Labs, Lupin, Dr Reddy’s, Cipla, Sun Pharma: Established players
- Plus hundreds of mid-sized and regional pharma companies
- Doctor mindshare competition intense
- Generic competition in chronic therapies
- Price controls on NLEM drugs
Regulatory Risks – Pharma Under Government Scrutiny:
- Subject to strict drug regulations (CDSCO, FDA approvals)
- Quality control and cGMP compliance mandatory
- NLEM pricing restrictions (9.76% of sales currently)
- Government may expand NLEM coverage = pricing pressure
- Product recalls or quality issues = severe reputational damage
- Frequent regulatory changes in pharma sector
Dependence on Medical Representatives – High Attrition Risk:
- 2,671 medical reps = significant people-dependent model
- Pharma MR attrition: 20-30% annually in India
- Continuous hiring, training costs
- Competitor poaching of trained reps
- Field force productivity critical to growth
- Labor cost inflation
Limited Geographic Diversification – 100% India:
- Zero international presence – 100% domestic India
- No export revenue
- Dependent on Indian pharma market growth, policies
- Currency risk avoided but growth limited to India
- Missing out on higher-margin international markets
- Expansion beyond India requires regulatory approvals, distribution build-out
Margin Pressure Risk – NLEM, Generic Competition:
- NLEM drugs (9.76% of sales) under price control
- Government may increase NLEM coverage
- Generic competition emerging as patented molecules expire
- Biosimilar threats in biologics
- Doctor prescription preferences can shift quickly
- Limited pricing power despite focus on chronic therapies
Raw Material Dependency – API Imports from China:
- Indian pharma heavily dependent on Chinese APIs (Active Pharmaceutical Ingredients)
- Supply chain disruptions = production delays
- Currency fluctuations impact costs
- Geopolitical tensions India-China create uncertainty
- API price volatility
R&D Investment Needed – Only 88 R&D Employees:
- Just 88 R&D employees (Dec 2024) – small team for 71 brands
- Need continuous pipeline development
- New molecule launches critical for sustained growth
- R&D costs rising but no IPO proceeds for R&D
- Competing with giants spending hundreds of crores on R&D
Patent Cliff – Branded Generic Vulnerability:

If operating in branded generic space, vulnerable to competition post-patent expiry
Need to continuously launch new brands to offset mature brand decline
Life cycle management critical
Limited patent protection on most chronic drugs

Promoter Partial Exit – Founder Selling at IPO:

Dr. Kirtikumar Mehta (founder) and family selling in OFS
Early investors (Sepia, Anchor, Sage) also exiting
Questions: Why exit if company has “multi-year sustained growth”?
May signal peak valuations or reduced confidence
Retail investors buying what promoters are selling

Post-IPO Growth Funding Challenge – No Fresh Capital:

With 0% fresh issue, company has no IPO capital for growth
Must generate cash internally or raise debt
Future equity dilution if needs capital (QIP, rights issue)
Growth may slow without capital infusion
Competitors with fresh capital may outpace

CRITICAL: This is a 100% Offer for Sale (OFS) – company receives ZERO proceeds. All ₹655.37 crore goes to selling promoters (Dr. Kirtikumar Mehta family) and investors (Sepia, Anchor, Sage). Analyst Dilip Davda: “Issue appears fully priced. Investors may lap it up for medium to long term.” P/E 43.47x is aggressive.

POSITIVES: Explosive growth (revenue +18%, PAT +65%), very strong GMP (₹365, 34.4%!), 2nd fastest growing in top 30 IPM (16.77% CAGR vs 9.21% industry), excellent returns (ROE 33.5%, ROCE 41.32%), strong brands (B-29 ₹100+ cr, Myoril, Cortel), focus on high-growth chronic therapies (22.40% CAGR), pan-India reach (2,671 reps, 22 states), mainboard listing, analyst support (“Subscribe” from SBI Securities, Arihant). This is a high-quality pharma play BUT 100% OFS means existing shareholders cashing out – suitable for long-term investors bullish on India pharma growth willing to pay premium valuations.

Disclaimer: This information is based on publicly available sources including media reports, RHP documents, and analyst reviews. Investors should conduct their own research and consult with financial advisors before making investment decisions.