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Salient features of the IPO:

* Corona Remedies Ltd. (CRL), Incorporated on August 27, 2004, is an Indiafocused branded pharmaceutical formulation company engaged in developing, manufacturing, and marketing products across women’s healthcare, cardio-diabeto, pain management, urology, and other therapeutic areas. The company ranks as the second fastest-growing player among the top 30 companies in the Indian Pharmaceutical Market (IPM) in terms of domestic sales between MAT June 2022 and MAT June 2025.

* CRL has also demonstrated strong product innovation. Since June 2022, it has recorded a higher share of new product launches with sales exceeding Rs. 5cr in MAT June 2025, accounting for 14.43%, compared with 11.40% for the top 30 pharmaceutical companies in the IPM and 5.60% for the overall IPM.

* This public issue is a solely comprise of OFS (Rs. 655.37cr). The company will not receive any proceeds from the OFS portion.

Key competitive strengths:

* Second fastest growing company within the top 30 pharmaceutical companies in the Indian pharmaceutical market

* Capabilities of building a diversified portfolio, including “engine” brands, in the 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

* Qualified, experienced and entrepreneurial management team supported by marquee investors

Business strategy:

* Further increase the market share within the domestic Indian pharmaceutical market

* Grow the product portfolio with a focus on long product life cycles and progression

* Expand into other therapeutic areas with significant growth potential and deepen the presence in existing therapeutic areas

* Execute strategic acquisitions and establish in-licensing agreements

* Expand the sales in select overseas markets with a focused approach

Risk and concerns:

* General slowdown in the global economic

* Operates in a regulated environment requiring approvals

* Depends partly on third-party manufacturers (37.3% of revenue)

* Exposure to government price controls may impact operations

* Competition

Valuation Overview and IPO Rating

At the upper end of the price band, CRL is valued at a P/E multiple of 43.5× (based on FY25 EPS of Rs. 24.4) and an EV/Sales multiple of 5.5×, which appears fully priced relative to its peers. The company has demonstrated consistent revenue and profit growth, supported by healthy margins. Around 70% of its revenue is derived from chronic therapies, which are typically high-margin and exhibit strong prescription stickiness. CRL primarily focuses on chronic segments such as women’s healthcare, cardiology, and diabetes, offering long-term growth visibility. Recent acquisitions have strengthened its presence in key chronic segments and improved growth visibility. CRL’s IPM ranking has improved from 37th to 29th, reflecting rising scale and competitiveness. While valuations appear fully priced, the company’s sustainable business model and long-term growth prospects support a “Subscribe for Long Term” rating for this issue.

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