Corona Remedies make a strong stock market debut; shares list at 38% premium

Shares of Corona Remedies made a bumper Dalal Street debut on Monday, December 15 as pharma player was settled at Rs 1,470 on NSE, a premium of 38.42 per cent over its issue price of Rs 1,062. Similarly, the stock kicked-off its maiden trading session with a premium of 36.72 per cent over its issue price at Rs 1,452 on BSE.

As of the listing price of Corona Remedies, retail investors, who received a single lot of 14 equity shares, made a profit of Rs 5,712 on their investment. Similarly, HNI investors, who received 14 lots of 196 equity shares, made a profit of Rs 79,968 on their investment of Rs 2,08,152.

The listing of Corona Remedies has been on the expected lines. Ahead of its debut, shares of Corona Remedies were commanding a grey market premium (GMP) of Rs 340-350 apiece, suggesting a listing pop of 32-33 for the investors. The GMP stood around Rs 300 during the bidding process.

The IPO of Corona Remedies was open for bidding between December 08 and December 10. It had offered its shares in the price band of Rs 1,008-1,062 per share with a lot size of 14 shares. The company raised a total of Rs 655.37 crore from its IPO, which was entirely an offer-for-sale (OFS) of up to 61,71,101 equity shares.

The issue was subscribed a whopping 137.04 times, attracting bids worth over Rs 66,500 crore via over 41.87 lakh applications. The portion for qualified institutional bidders (QIBs) was booked 278.52 times, while the quota for non-institutional investors (NIIs) was subscribed 208.88 times. The allocations for retail investors and employees were subscribed 28.73 times and 14.72 times, respectively.

Incorporated in August 2004, Ahmedabad-based Corona Remedies is a pharmaceutical company developing, manufacturing, and marketing products in women’s healthcare, cardiology, pain management, urology, and other therapeutic areas. It has a diverse portfolio of 71 brands with 2,671 medical representatives in 22 states.

Brokerage firms were largely positive on the issue, suggesting to subscribe to it. JM Financial, IIFL Capital Service and Kotak Mahindra Capital Company were the book running lead managers of Corona Remedies IPO and Bigshare Service served as the registrar of the issue.