Corona Remedies IPO Subscribes 62% on Day 1

Introduction

Corona Remedies, a prominent pharmaceutical company, launched its initial public offering (IPO) for public subscription on December 8. On the very first day, the IPO achieved a 62 percent subscription, reflecting significant investor interest.

IPO Subscription Details

According to NSE data, the IPO received bids for 28.17 lakh shares against an offer size of 45.72 lakh shares. Retail investors have actively participated, booking 87 percent of their reserved quota. Non-Institutional Investors (NII) have subscribed 79 percent of their allotted portion. Meanwhile, Qualified Institutional Buyers (QIBs) are yet to show substantial participation.

Grey Market Premium and Listing Outlook

In the grey market, unlisted shares of Corona Remedies were trading at a premium of approximately 25 percent over the IPO price, as per Investorgain. This is a decline from Friday’s 34 percent premium but still indicates strong potential for listing gains. Analysts suggest that these numbers reflect positive market sentiment towards the company.

About the Corona Remedies IPO

Corona Remedies’ IPO aims to raise over Rs 655 crore entirely through an Offer for Sale (OFS), with no fresh issue of shares. This structure ensures that all proceeds go to the selling shareholders, rather than the company itself.

The IPO price band is set between Rs 1,008 and Rs 1,062 per share. Investors can apply for a minimum of 14 shares, translating to an investment of Rs 14,868 per lot, with multiples allowed thereafter. The subscription window is open from December 8 to December 10. Allotment is expected by December 11, and the shares are scheduled for listing on BSE and NSE on December 15.

Expert Opinion: Should You Apply?

Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Pvt. Ltd., notes that since the IPO is purely an OFS, investors should evaluate it based on fundamentals such as margin strength, product portfolio, and consistent growth.

Maurya added that while Corona Remedies has a strong presence in key therapeutic areas, its profitability is relatively lower than some competitors. He suggests that investors view this IPO as a steady long-term investment in the pharmaceutical sector rather than an opportunity for rapid gains.

Conclusion

Corona Remedies’ IPO demonstrates robust initial interest, particularly from retail and non-institutional investors. With a healthy grey market premium and strong fundamentals in key therapeutic areas, the IPO presents a long-term growth opportunity in the pharmaceutical sector.

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Sorit Chaudhary

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