CORONA Remedies IPO Explained: Check GMP, Valuation, Peer Comparison & More

CORONA Remedies is a fast-growing Indian pharma company that makes and sells branded medicines for long-term health problems like diabetes, heart disease, and women’s health issues. Its ₹655.37 crore IPO runs from 8-10 December 2025 with a price band of ₹1,008-₹1,062 per share, a minimum lot of 14 shares, and a GMP of roughly ₹290-₹300, which suggests positive listing expectations but is only an unofficial and very volatile indicator, not a guarantee of profit.

In this blog, you’ll walk through what the company really does, how it makes money, what this IPO changes (and what it doesn’t), the key strengths and risks, how it stacks up against peers, and a view on valuation so you can think for yourself before applying.​

IPO Overview

• IPO Date: December 8 to December 10, 2025
• Total Issue Size: ₹655.37 crore
• Price Band: ₹1,008 to ₹1,062 per share
• Minimum Investment: ₹14,868
• Lot Size: 14 Shares
• Tentative Allotment Date: December 11, 2025
• Listing Date: December 15, 2025 (Tentative)
• GMP: The GMP for the CORONA Remedies IPO is ₹290, reflecting a 27.31% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How CORONA Remedies Makes Money

CORONA Remedies earns almost all its money from branded prescription medicines in India, mainly for long-term issues like diabetes, heart disease, and women’s health, so demand is steady and repeat.​ Chronic therapies (long-term medicines) form about 70% of India's sales, which keeps revenue more stable than seasonal products, where demand can swing sharply.​

The value chain runs in four steps: over 100 R&D scientists create products, key ingredients (APIs) are sourced from partners like La Chandra (24% stake) for hormone APIs, medicines are made in two plants in Gujarat and Himachal with a third hormone plant coming up in Ahmedabad, and then pushed to doctors through 2,671 medical reps plus 22 C&F agents and 2,000+ distributors across India.​

This mix of in‑house manufacturing and some third‑party sourcing helps the company keep high gross margins while scaling its brand portfolio.​ The business is India‑centric: about 96% of FY25 revenue is domestic, with nearly half of Indian sales from western and nearby states like Gujarat and Maharashtra.​

The company runs 71 brands, but 27 “engine brands” contribute over 70% of domestic sales, meaning a few star brands drive most of the money.​ Around 76% of prescriptions come from specialists and super‑specialists, much above the industry average, showing the company is focused on serious-care niche prescribing rather than casual over‑the‑counter demand.​

Objectives of the IPO

This IPO is a 100% Offer for Sale (OFS), which means the entire ₹655.37 crore goes to existing shareholders who are selling part of their stake, and the company itself gets zero fresh money from this issue. So there is no cash coming into the business for expansion, new plants, or debt repayment from IPO proceeds.​

So why do the IPO at all? There are three key reasons. First, listing on NSE and BSE gives the company higher visibility, better brand recall among doctors, partners, and talent, and the reputation that comes from being a public company with quarterly results and strict disclosures. Second, creating a public market for the shares provides liquidity, which means existing investors can buy and sell more easily and can unlock some of the value they’ve built over the years. Third, the OFS gives both promoters and financial investors a clean exit route for part of their holding while keeping the business otherwise unchanged in terms of operations and balance sheet.

Strengths:

• Fast growth, strong margins: Between FY23 and FY25, revenue grew about 16-17% a year to roughly ₹1,200 crore, almost double the Indian pharma market’s ~9% growth, making the company one of the fastest-growing top‑30 players. At the same time, gross margin rose from ~76% to ~80-81% and EBITDA margin from ~15% to 20.5%, so on every ₹100 of sales, the company now keeps about ₹20 as operating profit versus ₹15 two years ago.​
• High returns with a solid chronic focus: In FY25, RoCE was around 41-42% and RoE about 25-28%, well above many listed peers. Around 70% of domestic sales come from chronic and sub‑chronic therapies growing at over 20% a year (vs around 10% market growth), and about 75-76% of prescriptions come from specialists and super‑specialists, showing a strong position in high‑margin, long‑term treatments.​
• Strong cash discipline and low regulatory drag: Net working capital days were about 24 in FY25, so the company converts sales to cash in just over three weeks and runs with low net debt (net debt-to-equity ~0.10x and slight net cash of ₹6-7 crore), giving room to fund growth. Only ~10% of sales fall under NLEM price caps versus ~17-18% for the industry, which gives more pricing freedom and helps margins stay resilient when regulation hits peers harder.​

Risks:

• No fresh money, capacity already tight: The full ₹655.37 crore IPO is a pure Offer for Sale, so the company gets no new cash for capacity, R&D, or acquisitions even though a key tablet/capsule plant is already running at over 90% utilisation. Future growth will have to be funded mainly from internal cash and any new borrowing, not from IPO proceeds.​
• Concentrated products, therapies, geographies, and channels: Around 27 “engine brands” drive over 70% of domestic sales, and about 62% of revenue comes from just three therapy areas, women’s health, cardio‑diabeto, and pain, so any hit to these could materially hurt growth. Nearly 96% of revenue is from India, with about half of domestic sales clustered in western states like Gujarat and Maharashtra, and the top five C&F agents contribute over 40% of revenue, which makes the company sensitive to regional or distributor‑level disruptions.​
• Competitive valuation with lower margins than top peers: On FY25 numbers, the stock is valued at about 43-44x earnings, broadly in line with the sector and between names like Alkem (~31x) and Eris (~62x), so a lot of the growth story is already priced in. EBITDA margin of roughly 20-21% is solid but below high‑margin peers like Eris and Abbott India (30-35%), so the market is assuming further margin improvement; if that doesn’t play out, today’s multiple can start to look demanding.​

For detailed information, visit CORONA Remedies’ official IPO page at INDmoney.

Peer Comparison

As per the RHP, the company’s listed peers include Abbott India, Alkem Laboratories, Eris Lifesciences, GlaxoSmithKline, J.B. Chemicals, Mankind Pharma, Pfizer, Sanofi India, and Torrent Pharmaceuticals.

Source: RHP, internal calculation

• Growth vs peers: CORONA Remedies’ revenue CAGR of around 16-17% from FY23-25 is almost double the broader Indian pharma market and faster than many large peers like Alkem and Mankind, which are growing off a much larger base. This makes it one of the fastest climbers within the top 30 by domestic sales, moving from rank 37 to 29 between mid‑2022 and mid‑2025.​
• Profitability and returns: With a gross margin above 80%, CORONA sits ahead of many listed names, such as Alkem (around mid‑60s) and Torrent Pharma (mid‑70s), which hints at strong pricing and product mix. However, its EBITDA margin of about 20-21% is closer to mid‑tier peers and below high‑margin players like Eris and Abbott India, while RoE and RoCE at roughly 25-28% and 40-41% are stronger than most peers except a few outliers like GSK Pharma that run very asset‑light models.​
• Size and balance sheet: The company’s FY25 revenue of nearly ₹1,200 crore is much smaller than giants like Alkem and Mankind, which each do over ₹12,000 crore in revenue, so even if growth is faster, it is still a mid‑sized player in a huge market. On the balance sheet side, its low net debt and quick cash cycle compare favourably with some peers carrying larger debt and longer working capital cycles, which gives it more flexibility to ride short‑term shocks.​

IPO Valuation

At the top of the price band, the IPO values CORONA Remedies at a P/E of about 43.5 times its FY25 earnings, almost the same as the industry average P/E of roughly 43.7 times. In simple words, investors are being asked to pay around ₹43-₹44 for every ₹1 of profit the company made in FY25, which is not cheap but is in line with other high‑quality branded pharma players in India.​

The company’s market cap at the issue price is roughly ₹6,500 crore, backed by a business generating about ₹1,200 crore in annual revenue and ₹149 crore in FY25 profit with an EBITDA margin of around 20.5%. The EV/EBITDA multiple is around the mid‑20s, which means the total enterprise value is about 26 times its operating profit; investors usually pay such levels for businesses that can sustain high margins and strong growth for many years. Given the strong RoE and RoCE but still‑lower EBITDA margin than some top peers, the valuation looks “fully priced”; it leaves some room for upside if growth and margin improvement continue.​

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Who’s Making Money from the IPO?

The full ₹655.37 crore issue is an OFS spread across seven selling shareholders, a mix of promoters and financial investors. The largest seller is Sepia Investments Limited, a private equity investor, which is selling shares worth about ₹404.6 crore and is expected to clock a return of about 2.6 times on its original investment, healthy but not extreme for a successful growth deal. Two other financial investors, Anchor Partners and Sage Investment Trust, are also exiting partially, each at roughly 2.6x returns, similar to Sepia.​

On the promoter side, Dr. Kirtikumar Mehta is selling about ₹129.8 crore worth of shares, while his spouse, Minaxi, and other family members like Brinda and Dipabahen are together offloading a smaller portion that still represents large paper gains, since their original share cost was as low as a few paise per share. For example, Minaxi’s implied multiple runs into more than 13,000 times her original cost, but that mainly reflects decades of value creation rather than a quick flip. Overall, promoters will still retain a controlling stake after the IPO, but the sale does raise the usual debate: part liquidity event is normal at listing, but large trims also signal that some wealth is being taken off the table.​

Industry Outlook

The Indian domestic formulations market is about ₹2.3 lakh crore in FY25 and is expected to grow to roughly ₹3.3-3.5 lakh crore by FY30, implying annual growth of around 8-9%. Chronic therapies already account for about 55% of this market and are expected to grow at around 8.5-9.5% per year, faster than acute therapies, driven by more lifestyle diseases, longer life expectancy, and better access to doctors and treatment.​

This macro backdrop suits CORONA Remedies’ strategy because it is heavily tilted toward chronic and sub‑chronic segments where patients take medicines for long periods, giving stable, repeat revenue and better margins. At the same time, the sector faces tough regulation on prices (through NLEM), intense competition, and dependence on imported raw materials, especially from China, which can squeeze margins if costs spike or rules change. Players that combine strong brands, deep doctor relationships, efficient manufacturing, and tight working capital, like CORONA Remedies has tried to do, are better placed, but they are not immune to these challenges.​

Analyst View

Putting everything together, CORONA Remedies looks like a high‑quality, fast‑growing branded pharma player with strong margins, impressive return ratios, and a clear focus on chronic therapies and specialist doctors. This is the good part of the story. On the flip side, the IPO seems fully priced relative to peers, entirely an OFS, and comes with meaningful concentration risk in terms of geography, products, and distribution partners.

For a long‑term investor, the real question is not “Is this a great company?”, the numbers suggest it is solid, but “Is this the right price and time to enter a growth story where much of the good news is arguably already in the valuation?” If you believe the company can keep growing faster than the industry, improve margins closer to leaders, and smartly invest in capacity and new products without blowing up the balance sheet, the current valuation can still work over a 3-5 year view. If you are more cautious, you may see the 100% OFS, full pricing, and reliance on a narrow set of brands and regions as reasons to either size your bet very conservatively or wait for better entry points after listing volatility plays out.​

Either way, this IPO is better approached not as a quick GMP trade (remember, GMP is just an unofficial, unregulated sentiment gauge) but as a decision about owning a focused, mid‑sized, branded chronic pharma platform for the long haul. Think about your time horizon, risk appetite, and portfolio mix before applying, rather than just chasing listing buzz and anchor investors, even though top‑tier brokerages as lead managers and a strong institutional book do add credibility on the distribution side.​

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: CORONA Remedies' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.