Corona Remedies Ltd.

Growth from Brand Acquisitions

“Corona,” in common usage, refers to a circle of light that sometimes appears around the moon at night or around the sun during an eclipse. However, after the COVID-19 outbreak, companies and brands using the name “Corona” often face an automatic mental association with the pandemic. One such company, Corona Remedies, is entering the capital market with its offer for sale. The company does not intend to change its name and aims to progress like the light around the sun in the early morning.

Established in 2004, Corona Remedies operates two pharmaceutical manufacturing plants located in Gujarat and Himachal Pradesh. Promoted by Dr. Kirtikumar Mehta and Sons, the company has expanded by acquiring established MNC brands. The issue is entirely an offer for sale (OFS) by the promoters (Rs. 227 crore) and private equity investors such as ChrysCapital and others, who are partially exiting by selling equity shares worth Rs. 428 crore. The average cost per share for these private equity investors is Rs. 409 compared with the OFS upper price band of Rs. 1,062 per share.

CRISIL data shows that Corona Remedies has been among the fastest-growing domestic formulation players, with growth significantly above the Indian pharmaceutical market, driven by volume expansion, pricing, and new product launches. The company has a high share of chronic and sub-chronic therapies in its brand mix. About 96% of its revenue comes from the domestic market. It has a diversified product portfolio with over three hundred products marketed under more than seventy strong brands across multiple therapeutic areas. The company holds leading positions in several categories it operates in:

• Number six in women’s healthcare
• Number five in pain management
• Number eleven in urology
• Number twenty in the cardio-diabetes segment

Details of Key Acquired Brands:

Corona Remedies has expanded its portfolio through strategic acquisitions of brands that strengthen its presence in key therapeutic areas. Growth through acquisitions remains a core strategy and the company typically targets brands with an expected payback period of five years.

Many multinational pharmaceutical companies sell their established brands to align with their parent company’s global business model. Corona Remedies has developed expertise in acquiring such brands from MNC pharma companies and improving their contribution to both revenue and profitability. Among its acquired brands, 27 out of 71 are classified as “engine brands,” each with the potential to cross Rs. 100 crore in revenue. Approximately 70% of the company’s revenue is derived from these brands.

The Myoril brand strengthened the company’s pain management portfolio and contributed around 7% (Rs. 96 crore) to total revenue. The brand holds the number one rank in its respective pain management sub-group. The Obimet brand enhanced the company’s presence in diabetes management and achieved revenue of Rs. 61 crore (4.3%). Brands acquired since June 2025 from Bayer Zydus Pharma are expected to further strengthen the company’s women’s health and cardio-diabetes portfolios.

Financial Performance:

According to a CRISIL report, Corona Remedies is the second fastest-growing company among the top thirty in the Indian Pharmaceutical Market. It recorded an impressive revenue CAGR of 16.3% over the last three years (FY23 to FY25), rising from Rs. 884 crore to Rs. 1,196 crore.

EBITDA margin has expanded from the mid-teens to above 20%, resulting in 32.6% growth in its bottom line during this period. The company benefits from exceptionally low material costs as a percentage of sales, yielding a strong gross margin of over 80%. Around 10% of its revenue comes under DPCO, which regulates price increases in the larger public interest.

                                                                                                                                     (Rs. in crore)

Peer Comparison:

Mankind Pharma, an Ahmedabad-based pharmaceutical company, conducted an offer-for-sale (OFS) in April 2023 at an offer price of Rs. 1,080 per share, which has since doubled post-listing. With a market capitalization exceeding Rs. 91,000 crore, Mankind Pharma commands a high price-to-earnings (P/E) ratio of 55 times and a market cap to revenue multiple of 9.6 times.

In comparison, Corona Remedies has priced its OFS at a P/E ratio of 44 times. At the upper price band, its market capitalization is ~ Rs. 6,500 crore, translating to 5.4 times its revenue.

Large pharmaceutical companies like Alkem and Pfizer enjoy lower price-to-earnings (P/E) ratios of around 27 times. Smaller companies such as JB Chemicals have a P/E ratio of 41 times, while Torrent Pharma—which is acquiring JB Chemicals—trades at a significantly higher P/E of 61 times.

The unofficial grey market has indicated a potential listing gain of over 30%, though such data is highly unreliable. Corona Remedies’ IPO is expected to receive a positive response from investors, with many anticipating that the offer-for-sale (OFS) could mirror Mankind Pharma’s post-OFS price performance. However, only time will confirm actual outcomes.

Disclaimer:

The writer is not a SEBI-registered analyst. Neither the writer nor their friends or relatives may or may not participate in the IPO. This article is intended solely for educational purposes. Investors are advised to consult their financial advisors before making any investment decisions. Grey market indications should be treated only as a reference and not as a reliable benchmark for listing performance.