Corona Remedies IPO Subscription Picks Up on Day 1; GMP Hints at 25% Listing Profit; Is This IPO a Buy?

The Corona Remedies IPO received a healthy response on the first day of bidding, especially from retail and non-institutional investors (NIIs). As of market close today on December 8, the IPO was subscribed 0.62 times overall. The retail portion saw strong traction with 0.89 times subscription, while the NII category subscribed 0.78 times. The QIB category remained unsubscribed, which is typical as institutional investors usually participate toward the end of the IPO window.

Corona Remedies IPO Details: Price Band, Dates & Offer Structure

The Corona Remedies IPO is a Rs. 655.37 crore issue, entirely an offer for sale (OFS) of 0.62 crore shares. The IPO opened for subscription on December 8 and will close on December 10. The price band for the IPO has been set between Rs. 1008 and Rs. 1062 per share, with a lot size of 14 shares, requiring a minimum investment of Rs. 14,868 for retail investors. The basis of allotment is expected on December 11, and the shares are likely to be listed on the NSE and BSE on December 15 as per the DHRP.

Corona Remedies IPO GMP Today

The Corona Remedies IPO Grey Market Premium (GMP) currently is signalling strong listing expectations. The latest GMP stands at Rs. 260 as of December 8, suggesting an estimated listing price of Rs. 1322 against the upper issue price of Rs. 1062. This translates into a potential listing gain of approximately 24.48% for the investors who receive the allotment of shares.

IPO Review: Should You Apply for Corona Remedies IPO?

Brokerage house Nirmal Bang Securities has assigned a "Subscribe" rating to the Corona Remedies IPO because of the company's outperformance in the Indian Pharmaceutical Market (IPM).

The report mentioned that "The company's revenue grew at 16% CAGR between FY23 and FY25. Its limited exposure to regulated pricing and an expanding, scalable commercial model further enhances earnings visibility. Together, these factors augur well for Corona Remedies in the domestic formulations space. In FY25, the company's return ratios reported strong levels, with ROE and ROCE at 24.6% and 30.1%, respectively. The issue is valued at 43.6x to FY25 EPS and 35x to annualised Q1FY26 EPS, which looks attractive compared to industry peers (avg. 49.7x FY25 EPS) in view of its strong growth outlook and resilience in sustaining margin profile. Thus, we recommend SUBSCRIBING to the issue."

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