Mumbai: Mid-range Pharmaceutical player Corona Remedies’ listed on the stock market today with a blockbuster 35% gain, significantly outperforming investors’ expectations from the issue. The shares of Corona Remedies debuted at ₹610-615 on the bourses, about 38.42% higher than the issue price of ₹444 per share.
This listing is significantly higher than the 27.04% GMP estimated after the issue closed on December 11, indicating strong investor appetite for the branded generics player. The stronger-than-expected debut demonstrated investor confidence in the company, despite concerns of the company’s high price-to-earnings ratio of 35, with its m-cap now reaching almost ₹9,000 crore from ₹6,495 crore before the IPO.
The Ahmedabad-based company has been growing strongly lately, with its FY25 revenues rising almost 18% year on year to ₹1,202 crore with profit after tax at ₹46 crores. The company has a fairly low debt-to-equity ratio of 0.1 with its Return on Equity (ROE) at 27.5% and Return on Capital Employed (ROCE) at over 41%, thanks to the company’s disciplined capital management strategy.
As this was a purely Offer For Sale (OFS) IPO, the allottees can expect to gain from the company’s strong financials, though much depends on how the company aims to boost growth and sustain the momentum of its success.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
