Offer for Sale of up to Equity Shares of face value of ₹10 each aggregating up to ₹655.37 Cr. (The company will not receive any proceeds from the Offer for Sale.)
Our View
Incorporated in 2004, Corona Remedies Ltd. has positioned itself in the “middle of the market pyramid,” targeting specialized doctors in urban and semi-urban areas. It was the second-fastest-growing pharma company among India’s top 30 by domestic sales. Focus on developing high-margin "engine brands" enhances revenue visibility and brand recall among prescribers.
The Indian domestic formulations market is expected to grow at a CAGR of 8-9% between FY24-FY29 to approximately ₹3.3-3.5 trillion by FY30, aided by rising incidence of chronic diseases and increased awareness and access to quality healthcare.
Risks to consider include high reliance on engine brands, domestic revenue concentration, concentrated sales in the West zone of India, reliance on third-party suppliers, a highly regulated sector, capital intensity, and high competition which may adversely affect the business and results of operations.
Financial highlights: Revenue/PAT & EBITDA CAGR of 16% / 33% & 35% respectively between FY23-25. ROE & ROCE stood at 27.5% and 41.32% respectively at FY25. Net Debt to Equity was 0.10x in FY25. EBITDA & PAT margins were 20.55% and 12.49% at FY25. At the upper price band of ₹1,062, post-issue market cap is approximately ₹6,495 Cr.
The issue is priced at a P/BV of 10.7 based on NAV of Rs. 99.25 as of June 30, 2025. If FY26 earnings are annualised, the implied P/E is ~35x versus an industry average of ~44x, indicating the issue appears fully priced. Based on the company’s offerings, growing brand and potential, the company projects long-term growth; investors may apply with a long-term investment horizon.
Financial Snapshot & Valuation
Revenue / PAT CAGR (FY23-25): 16% / 33%
EBITDA CAGR (FY23-25): 35%
ROE (FY25): 27.5%
ROCE (FY25): 41.32%
Net Debt to Equity (FY25): 0.10x
EBITDA Margin (FY25): 20.55%
PAT Margin (FY25): 12.49%
P/BV: 10.7 (NAV Rs. 99.25 as of June 30, 2025)
Indicative P/E (annualised FY26): ~35x (industry ~44x)
Note: Issue appears fully priced relative to NAV and industry multiples; investors should weigh growth and margins against valuation.
Key Risk Factors (Summary)
High reliance on engine brands
Domestic revenue concentration
Concentrated sales in West zone of India
Reliance on third-party suppliers
Highly regulated sector and compliance risk
Capital intensive operations
Intense competition in the pharmaceutical market
Frequently Asked Questions (FAQs)
When does the Corona Remedies IPO open and close?
The Corona Remedies IPO opens on December 8, 2025 and closes on December 10, 2025.
What is the price band for the Corona Remedies IPO?
The price band is ₹1,008 to ₹1,062 per equity share.
What is the lot size and minimum application amount?
The lot size is 14 shares. Minimum application amount is ₹14,868 (14 shares).
Is Corona Remedies profitable?
Corona Remedies reported healthy EBITDA & PAT margins at FY25 (20.55% & 12.49%). Investors should still consider revenue concentration and regulatory dependencies when assessing sustainability.
Should I apply for this IPO?
Sushil Finance view: Subscribe for long-term horizon. Assess valuation (P/BV ~10.7; P/E ~35x annualised FY26) and the concentration/regulatory risks before applying.
Brief Financials
| PARTICULARS |
₹ in Million |
As at
June 30, 2025 |
FY ‘25 |
FY ‘24 |
FY ‘23 |
| Total Income |
3,485.59 |
12,023.53 |
10,209.31 |
8,911.01 |
| Total Expenditure |
2,767.63 |
9,564.40 |
8,597.41 |
7,560.71 |
| EBITDA |
717.96 |
2,459.13 |
1,611.90 |
1,350.30 |
| Profit before Tax |
606.93 |
1,985.33 |
1,184.81 |
1,108.87 |
| Profit after Tax |
461.96 |
1,494.34 |
905.03 |
849.29 |
| E.P.S. (Diluted) |
7.55 * |
24.43 |
14.80 |
14.57 |
| P/E (x) (Diluted) |
- |
43.47 |
- |
- |
| ROCE (%) |
20.50* |
24.65 |
18.84 |
20.79 |
*Not annualised
PRICE CHART (@ ₹ 1,062) (Retail Category)
| LOT SIZE |
| Amount |
| 14 |
14,868 |
| 28 |
29,736 |
| 42 |
44,604 |
| 56 |
59,472 |
| 70 |
74,340 |
| 84 |
89,208 |
| 98 |
104,076 |
| 112 |
118,944 |
| 126 |
133,812 |
| 140 |
148,680 |
| 154 |
163,548 |
| 168 |
178,416 |
| 182 |
193,284 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
196 |
208,152 |
| Big HNI |
952 |
1,011,024 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
11/12/2025 |
| Initiation of refunds/unblocking ASBA Fund |
12/12/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
12/12/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
15/12/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
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