Corona Remedies Files DRHP for ₹800 Crore IPO

Pharmaceutical company Corona Remedies Limited has taken a significant step towards listing on the public markets, filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). The proposed Initial Public Offering (IPO) is slated to be entirely an offer for sale (OFS) of up to ₹ 800 crore.

Offer for Sale 

Unlike IPOs that involve issuing new shares to raise capital for the company, Corona Remedies' offering is structured purely as an Offer for Sale or OFS. This means that the promoter group, led by Dr. Kirtikumar Laxmidas Mehta, is among those offloading shares. Also participating are affiliates of the current investor ChrysCapital specifically, Sepia Investments, Anchor Partners, and Sage Investment Trust. ChrysCapital presently holds a 27.5% stake in Corona Remedies.

Company Overview and Performance

Headquartered in Ahmedabad, Corona Remedies is a pharmaceutical company focused on the development, manufacturing, and marketing of products across various therapeutic segments. Its portfolio, as of December 31, 2024, comprises 67 brands serving areas including women's health, cardiovascular and diabetes care, pain management, and urology.

The company has demonstrated strong growth in the domestic market. According to a CRISIL report, Corona Remedies was ranked as the second fastest-growing company among the top 30 firms in the Indian Pharmaceutical Market (IPM) based on domestic sales performance from MAT December 2021 to MAT December 2024. For the fiscal year ending March 31, 2024 (FY24), the company reported revenues of ₹ 1,014.5 crore. A substantial portion of its revenue originates domestically, with over 96% coming from within India during the nine months ended December 2024. This strong focus on the Indian market is noted as providing a stable financial base as the company seeks public investment.

Operational Capabilities and Export Unit Status

Corona Remedies operates a major manufacturing facility located in Bhayla, Gujarat. This facility reported a capacity utilisation of over 90% for tablets and capsules during the nine months ending December 31, 2024, indicating efficient operational practices. The high utilisation rate also suggests capability for further expansion post-IPO.

Furthermore, the company operates under the guidelines for Export Oriented Units (EOUs). This framework requires Corona Remedies to achieve positive net foreign exchange earnings over a five-year period and generally export its entire production, with limited exceptions for domestic sales. Operating as an EOU allows the company to import necessary goods for production on a self-certification basis, which can facilitate cost-effective production

IPO Allocation Details

The proposed IPO has specific reservations for different categories of investors. As per the DRHP details cited, 75 percent of the issue size is reserved for Qualified Institutional Bidders (QIBs). Non-Institutional Investors (NIIs) will receive 15 percent of the allocation. Retail investors have the remaining 10 percent of shares reserved for them.

Managing the Offering

The book running lead managers (BRLMs) appointed to manage the IPO process are JM Financial, IIFL Capital Services, and Kotak Mahindra Capital Company. Bigshare Services has been appointed as the registrar for the issue. Upon listing, the shares of Corona Remedies are expected to be traded on both the BSE and NSE exchanges.

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