Corona Remedies IPO Opens: Subscribe For Long-Term, Says Anand Rathi — Check Key Issue Details

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Anand Rathi Report

Corona Remedies Ltd.'s initial public offer opened for subscription today, December 08 and will conclude on Dec. 10. An India-focused branded pharmaceutical formulations company has fixed the price band at Rs 1,008 to Rs 1,062 Apeice.

Investors can place bids starting from a minimum of 14 shares and in multiples thereafter, meaning retail investors are required to apply for at least a single lot size, amounting to an investment of Rs 14,868 per application based on the upper end of the issue price.

Corona Remedies’ IPO worth Rs 655.37 crore, is entirely an offer-for-sale of 62 lakh shares.

Bigshare Services Pvt. Ltd. is the issue registrar, while JM Financial Ltd. is the book-running lead manager for the IPO.  

Strengths:

• Second fastest growing company within the top 30 pharmaceutical companies in the Indian pharmaceutical market by domestic sales between MAT June 2022 and MAT June 2025, well-positioned to capitalize on the opportunities in the Indian pharmaceutical market.

• Demonstrated capabilities of building a diversified portfolio, including “engine” brands, in our targeted therapy areas.

• Pan-India sales network and marketing strategy focused on the “middle of the pyramid” target market.Quality and current Good Manufacturing Practices-focused manufacturing facilities, with strong research and development capabilities driving a portfolio of differentiated pharmaceutical products.

Key Strategies:

• Further increase their market share within the domestic Indian pharmaceutical market.

• Grow their product portfolio with a focus on long product life cycles and progression.

• Expand into other therapeutic areas with significant growth potential and deepen their presence in existing therapeutic areas.

• Execute strategic acquisitions and establish in-licensing agreements.

• Expand our sales in select overseas markets with a focused approach.

Key Risk:

• Concentration in Key Therapeutic Areas: A substantial portion of revenue is concentrated in women’s healthcare, cardio-diabeto and pain management, contributing 65.14% in Q1 FY2026 and 62.40% in FY2025. Any underperformance of products in these segments, or increased competition from alternative therapies, could materially impact our revenue, profitability, and cash flows.

• Dependence on Engine Brands: The company’s domestic performance is heavily anchored in its 27 “engine” brands, notably B-29 and Myoril, which together contributed 72.34% of domestic sales during MAT June 2025. This high level of brand concentration increases the company’s exposure to product-specific risks. Any slowdown in prescription momentum, competitive intensification, regulatory intervention, or supply-side challenges affecting these core brands could materially weaken the company’s revenue trajectory. Sustained underperformance of these brands may therefore adversely impact operating results, financial condition and cash flows.

• Concentration in Chronic and Sub-Chronic Therapies: For MAT June 2025, 70.10% of the company’s domestic sales were generated from chronic and sub-chronic therapeutic segments. This concentration heightens exposure to therapy-specific risks, including evolving clinical protocols, intensified competition, pricing pressures, and regulatory or reimbursement changes. Any adverse developments impacting these segments— such as shifts in prescription behaviour or the launch of superior competing products—could materially affect the company’s revenue visibility, operating performance, financial condition and cash flows.

• Dependence on Third-Party Suppliers: The company relies on third-party suppliers for raw materials and finished goods, representing 19.87% of total expenses in Q1 FY2026 and 27.96% in FY2025, without long-term contractual arrangements. In addition, the company depends on La Chandra Pharmalab Private Limited, an Associate and Group Company, for key APIs used in its women’s healthcare portfolio. Limited control over these suppliers increases the risk of supply disruptions, pricing volatility or quality issues, any of which could adversely affect operations, product availability, financial performance and cash flows.

Valuation:

Corona Remedies is an India-focused branded pharmaceutical formulations company. It develops, manufactures, and markets prescription based medicines used by specialist doctors across India.

The company's diverse portfolio includes 71 brands across therapeutic areas like women’s healthcare, cardio-diabeto, pain management, urology, and multispecialty pharmaceuticals. The Company also has a portfolio of specialized chronic pharma products that carries high margins.

The company is well positioned to sustain above-industry growth, supported by a strong brand portfolio, leadership in key therapies, and consistent strategic execution.

With a 16.77% CAGR 2 nd fastest among the top 30 pharma players it continues to outperform the IPM, driven by sector-leading momentum in chronic and sub-chronic therapies and steady scale-up of recent launches.

On the valuation front, Based on annualized FY26 earnings, the company is seeking a P/E of 35.3 times, and a post-issue market capitalization of approximately Rs 64,952 million, making the issue appears to be fully priced.

We believe the company enters the next phase of growth with high-visibility revenue drivers, differentiated capabilities, and a robust pipeline, positioning it for sustained market share gains and long-term value creation.

Hence, we assign Subscribe for long term only rating for the issue.

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