Corona Remedies filed DRHP with Sebi to launch IPO

CORONA Remedies is moving forward with its plans for an initial public offering (IPO) as the company has filed its draft red herring prospectus (DRHP) with the capital market regulator Sebi. The company is preparing to enter the public markets after stock market debut.The issue is entirely an offer-for-sale (OFS) of up to Rs 800 crore by its promoters and existing shareholders of the company.

The company, primarily engaged in the pharmaceutical sector, operates a major manufacturing facility in Bhayla, Gujarat. For the nine months ending December 31, 2024, the facility reported a capacity utilisation of over 90% for tablets and capsules, highlighting efficient operational practices. This high utilisation rate underscores the company's capability and readiness to expand its production capacity further post-IPO.
 

Corona Remedies relies heavily on its domestic operations, with over 96% of its revenue during the nine months ended December 2024 coming from within India. This focus on the Indian market has allowed the company to maintain a stable financial base, which is beneficial as it looks to attract public investment through the IPO. The funds raised are expected to enhance the company's manufacturing infrastructure and possibly reduce its debt levels.
 

Operating under the guidelines for Export Oriented Units (EOUs), CORONA Remedies Limited is required to achieve positive net foreign exchange earnings over a five-year period. The company must export its entire production, with limited exceptions for domestic sales, allowing it to import goods necessary for production on a self-certification basis. This framework facilitates cost-effective production, which could be beneficial for its financial strategy moving forward.
 

Corona Remedies has reserved 75 per cent of the issue for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation. Retail investors have only 10 per cent of shares reserved for them in this IPO.
 

JM Financial, IIFL Capital Services and Kotak Mahindra Capital Company are the book running lead managers (BRLMs) for the IPO of Corona Remedies, while Bigshare Services has been appointed as the registrar of issue. Shares of the company shall be listed on both BSE and NSE.