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Pharma IPO Surges: Grey Market Buzzes with 27% Premium
9 Dec
Summary
- IPO subscribed 33% on opening day, showing investor interest.
- Grey market trades at a 27.3% premium, signaling strong demand.
- Company reports strong FY25 revenue of Rs 1,196 crore.
Corona Remedies' Initial Public Offering (IPO) opened for subscription, drawing substantial investor attention and reaching 33% subscription within the first day. This positive reception is further amplified by its performance in the grey market, where it is trading at a notable 27.3% premium, suggesting strong demand ahead of its official listing on the BSE and NSE, expected around December 15.
The company showcased a strong financial performance in FY25, reporting Rs 1,196 crore in revenue from operations. Its growth is underpinned by a robust portfolio of 71 brands, including key 'engine' brands that drive a significant portion of domestic sales. Backward integration with an API manufacturer also enhances its control over crucial hormone therapy inputs.
Despite its strengths, analysts highlight potential concentration risks, such as revenue dependency on top brands and regional sales concentration in India's western region. While operating cash flow can be volatile, Canara Bank Securities recommends a 'subscribe' for long-term investors, citing the company's growth potential and market positioning.
