Corona Remedies, a fast-growing pharmaceutical formulation company headquartered in Ahmedabad, has submitted its IPO papers with the Securities and Exchange Board of India (SEBI) for an INR 800 crore public offer. Corona Remedies IPO will be an Offer for Sale (OFS), signaling a partial exit by the company’s promoters and private equity backers. Notably, ChrysCapital is partially divesting its stake after nine year.
This IPO filing marks the latest in a growing series of exits by private equity firms in India’s high-growth healthcare and pharmaceutical sectors.
Corona Remedies IPO Structure
According to the DRHP, no new shares will be issued, and proceeds will go to the selling shareholders, not the company. The offer will see stakes offloaded by the promoter group led by Dr. Kirtikumar Laxmidas Mehta, as well as ChrysCapital’s affiliates—Sepia Investments, Anchor Partners, and Sage Investment Trust, which collectively hold a 27.5% stake in the company.
Here’s a brief breakdown of the stake divestment:
| Shareholder | Stake Value (INR Cr) |
|---|---|
| Dr. Kirtikumar L. Mehta | 160 |
| Minaxi K. Mehta | 94.40 |
| Dipabahen N. Mehta | 12.80 |
| Brinda A. Mehta | 12.80 |
| Sepia Investments | 491.40 |
| Anchor Partners | 18.37 |
| Sage Investment Trust | 10.23 |
Corona Remedies IPO will be managed by JM Financial, IIFL Capital Services, and Kotak Mahindra Capital, three of the country’s prominent investment banks. While Bigshare Services is the registrar of the issue.
Company Overview
Founded in 2007, Corona Remedies is a branded formulation player with a strong footprint in women’s healthcare, cardio-diabetes, pain management, and urology. It operates in the Indian Pharmaceutical Market (IPM), a competitive and highly fragmented landscape.
Financial Snapshot
| Metric | FY24 | FY23 | FY22* |
|---|---|---|---|
| Revenue from Operations | 101.45 | 88.41 | 61.73 |
| EBITDA | 161.19 | 135.30 | 24.4 |
| EBITDA Margin | 15.89% | 15.27% | 3.96% |
| PAT | 90.50 | 84.92 | (0.40) |
| RoCE | 31.19% | 28.36% | 1.15% |
| RoE | 20.36% | 23.29% | (0.12%) |
*Standalone data
Brand Portfolio & Therapeutic Strength
Corona boasts a diversified portfolio of 67 brands, with 27 categorized as “engine brands,” which contributed to over 72% of domestic sales in the latest MAT period. Major brands include Myoril (pain management), Cor, Trazer, COR-9 (women’s healthcare), and Obimet (diabetes care).
Notably, the Myoril brand, acquired from Sanofi in 2023, has already scaled to INR 87.47 crore in annual domestic sales and holds the #1 rank in its sub-group.
Corona has tactically focused on chronic and sub-chronic therapy areas, which now constitute 69% of its domestic revenue, outpacing the broader IPM in these segments with a CAGR of 22.35% vs. 9.99% for the market.
Market Focus
Corona’s go-to-market strategy targets the “middle of the pyramid”, focusing on specialist and super-specialist doctors—75% of its prescriptions come from this cohort, compared to 61% for the IPM. Its 2,598-member sales force spans 22 states, giving it wide reach across both urban and semi-urban India.
In terms of market rank by therapy area, the company holds:
- 6th position in women’s healthcare
- 5th position in pain management
- 21st in cardio-diabeto
- 11th in urology
Operational Footprint and Manufacturing
Corona operates two manufacturing facilities in Gujarat (Bhayla) and Himachal Pradesh (Solan) with a combined capacity of 1.28 billion units per annum. It is also commissioning a hormone API facility in Gujarat and holds a stake in La Chandra Pharmalab, a WHO and EU GMP-certified API manufacturer, as part of its backward integration strategy.
It has also entered into in-licensing partnerships with global players like Ferring Pharmaceuticals, adding depth to its pipeline.
Conclusion
Corona Remedies’ proposed INR 800 crore IPO is more than just a liquidity event for its investors—it reflects the maturation of a focused, brand-driven pharma company with strong fundamentals. For long-term investors seeking exposure to India’s growing chronic and sub-chronic pharmaceutical landscape, this IPO merits close attention, provided pricing is reasonable.
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