IPO Note : Corona Remedies Ltd by Geojit Financial Services Ltd
Well-placed to thrive in India’s evolving pharma landscape...
Corona Remedies Ltd (CRL), incorporated in 2004 and headquartered in Ahmedabad, Gujarat, is an India-focused ChrysCapital-backed (through its affiliate Sepia Investment Limited) branded pharmaceutical formulation company engaged in developing, manufacturing, and marketing a diversified portfolio of 71 brands across therapeutic areas including women’s healthcare, cardio-diabeto (cardiovascular and antidiabetic), pain management, urology, and others.
* The Indian domestic formulation market, valued at Rs.2.3 trillion in FY25 (2% of global pharma), grew at a 9% CAGR during FY20–25 and is projected to reach Rs.3.3–3.5 trillion by FY30 at 8–9% CAGR, driven by rising chronic diseases, greater healthcare awareness, and improved access.
* CRL ranked as the second fastest-growing company among the top 30 players in the Indian pharmaceutical market (IPM), with domestic sales rising at a 16.8% CAGR over the period from Moving Annual Total (MAT) June 2022 to June 2025. This growth outpaced the industry’s 9.21% CAGR and is 1.8 times higher than the overall market.
* According to CRISIL, as of June 2025, CRL is ranked 6th in women’s healthcare, 5th in pain management, 22nd in cardio-diabeto (cardiac and diabetes care), and 9th overall in domestic sales, supported by the launch of its urology division in 2023.
* As of June 30, 2025, CRL’s NLEM (National list of essential medicines) 2022 exposure was limited to 9.76% of sales vs 17.51% for IPM, positioning CRL among the lowest exposed companies and enabling greater pricing flexibility and sustainable profitability.
* CRL strengthens its portfolio through acquisitions and in-licensing, addressing therapy gaps and complementary needs. Key brands from GSK Pharma and Sanofi India have been successfully integrated, delivering robust growth with CAGRs of 75.4% and 51.9% up to MAT June 2025.
* Between FY23–FY25, CRL demonstrated strong financial resilience with Revenue, EBITDA, and PAT growing at CAGRs of 16.3%, 36.9%, and 32.6%, driven by consistent topline growth, improved efficiency, and stronger profitability.
* At the upper price band of Rs.1,062, CRL is available at a P/E of 43.5x (FY25 post issue basis), which appears to be fairly priced.
* With a strong distribution network, successful acquisitions and in-licensing, resilient financial performance, lean balance sheet and continued focus on R&D and innovation, the company is well-positioned for long-term growth. We therefore assign a SUBSCRIBE rating for investors with a long-term investment horizon.
Purpose of IPO
The issue comprises an Offer for Sale (OFS) of up to 61,71,101 equity shares aggregating Rs.655.4cr. This includes Rs.227.2cr from the promoter and promoter group, Rs.404.6cr from Sepia Investments Ltd, Rs.15.1cr from Anchor Partners, and Rs.8.4cr from Sage Investment Trust. The objective of the issue is to achieve the benefits of listing the equity shares on the stock exchanges.
Key Risks
* Over 60% of the revenue in FY25 comes from women’s healthcare, cardio-diabeto, and pain management.
* Dependence on key brands, led by B-29 and Myoril, which contributed 72.34% of domestic sales.
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SEBI Registration Number: INH20000034
