Corona Remedies IPO Allotment: Robust GMP Signals Strong Listing Momentum

A sharp rise in the grey market premium for the Corona Remedies IPO has placed the spotlight firmly on the company’s upcoming listing. With the GMP hovering around 305 per share against an issue price of 1062, market sentiment currently points toward a potential 29 percent listing gain. This surge reflects a combination of heavy subscription numbers, strong brand fundamentals, sector- level momentum and investor confidence in the company’s financial and operational strength.

The IPO attracted overwhelming demand, receiving bids for more than 62.65 crore shares against an offer size of just 45.71 lakh shares. This resulted in an extraordinary 137.04 times subscription. The level of participation across investor categories further strengthens the narrative of high conviction. Qualified Institutional Buyers led with 278.52 times subscription, followed by Non Institutional Investors at 208.88 times. Retail participation reached 28.73 times, underscoring broad-based investor interest.

A Deep Dive Into Growth Drivers

Corona Remedies has emerged as one of the fastest-growing companies in the Indian pharmaceutical landscape. Between MAT June 2022 and MAT June 2025, domestic sales registered a CAGR of 16.77 percent, significantly outperforming overall industry growth of 9.21 percent. The company’s ascent is driven by its focused participation in chronic and sub-chronic therapy segments, which together contribute over 70 percent of domestic revenue. These areas continue to expand at a healthy pace due to increasing lifestyle-related diseases, rising health awareness and deeper penetration of specialist medical care across India.

A major pillar of the company’s expansion is its suite of 27 high-impact engine brands. These brands generated more than 72 percent of domestic sales in MAT June 2025 and have demonstrated consistent scalability. Their strength across categories such as pain management, women’s health, cardio-diabetes and urology ensures diversified growth and reduces product-level vulnerability.

Financial Performance Strengthening Investor Confidence

The financial trajectory of the company adds weight to its investment appeal. Revenue climbed from 884 crore in FY23 to 1,196 crore in FY25, translating to a 16.3 percent CAGR. Profitability has expanded even faster, supported by operational efficiencies and improved product mix. EBITDA rose from 135 crore to 246 crore over the same period, marking a 35 percent CAGR. Net profit increased from 85 crore in FY23 to 149 crore in FY25, reflecting a 32 percent CAGR. Such margin expansion indicates disciplined cost management and high-quality revenue streams. With several high-value therapy segments contributing significantly to growth, profitability is expected to remain steady.

Manufacturing Strength and Backward Integration Advantage

Corona Remedies operates two key manufacturing facilities in Gujarat and Himachal Pradesh with a combined installed capacity of 1,285 million units annually. These units are equipped with certifications such as EU-GMP and WHO-GMP, demonstrating strong compliance with global quality standards. Additionally, backward integration through La Chandra Pharmalab offers preferential access to hormone APIs, a critical differentiator in women’s health and complex hormonal products. The company’s R&D footprint continues to expand through two DSIR-registered facilities focusing on formulation development, process optimization and packaging innovation. With over 100 personnel in R&D, the company is positioned to strengthen its pipeline and diversify into additional niche therapy spaces.

Distribution Network and Market Positioning

A wide and efficient distribution network remains central to Corona Remedies’ market success. As of June 2025, the network comprised 22 C&F agents, over 2,000 distributors, and a robust field force of 2,671 medical representatives. The field team engages closely with specialists and super- specialists who collectively contribute over three-quarters of the company’s prescription volume.

This structure has helped the company establish consistent visibility in both urban and semi-urban markets. The strategic focus on the middle-of-the-pyramid consumer category supports long-term sustainability in demand.

Why the IPO Continues to Attract Attention

Although the IPO was entirely an offer for sale, the strong fundamentals and operational discipline of the company have made it a notable market event. A rising GMP reinforces that expectation. With listing expected on 15 December 2025, allottees are eyeing significant listing gains, while long-term investors are evaluating the company’s sustained growth potential, disciplined brand strategy and strengthening sectoral dynamics.