The second week of December will see pharmaceutical company Corona Remedies entering the primary market with its Rs 655 crore IPO, scheduled to open on December 8.
The company’s name, coincidentally sharing its name with the disease that kept the world indoors for two years, has naturally drawn attention — but the fundamentals remain the real focus.
Let’s dive into the details.
Corona Remedies IPO: Issue price, offer size
Corona Remedies IPO is entirely an Offer for Sale (OFS) of 0.62 crore shares worth Rs 655.37 crore with no fresh issuance. The company has fixed the price band between Rs1,008-1,062 per share, with each share having a face value of Rs 10.
JM Financial, IIFL Capital Services, and Kotak Mahindra Capital will be managing the company’s issue while Bigshare Services is the registrar to the offer.
Corona Remedies IPO: Offer for sale details
The IPO is entirely an Offer for Sale (OFS) of 0.62 crore shares amounting to Rs 655.37 crore, with no fresh share issuance. The face value of each share is Rs 10.
Corona Remedies IPO: Grey Market Premium (GMP)
As per the latest update, the shares of the company are trading around Rs 1,427, implying a grey market premium of nearly 35% over the upper end of the price band. However, it should be noted that GMP is not an official metric for the listing price of the shares. It fluctuates based on the market conditions and at best shows investor sentiment.
Corona Remedies IPO: Objectives of the Offer
As the issue is entirely an OFS, the company will not receive any proceeds from the IPO. All funds raised will go to the selling shareholders after the deduction of offer expenses. The promoter group currently holds over 40 crore equity shares, representing 66% ownership in the company.
Corona Remedies IPO: Key dates
The IPO will open on December 8 and close on December 10. Anchor bidding is scheduled for December 5. The basis of allotment is likely to be finalised on December 11, with demat credit and refund initiation expected on December 12. The company is tentatively scheduled to list on the exchanges on December 15.
Corona Remedies IPO: IPO Lot Size
For retail investors, the minimum bid is one lot, which is equal to 14 shares, while the maximum they can apply for is 13 lots, which is equal to 182 shares. For small High Net-worth Individuals (HNIs), the bidding range begins at 14 lots, which is equal to 196 shares, and goes up to 67 lots, which is equal to 938 shares. Large High Net-worth Individuals (HNIs) can apply for 68 lots, which is equates to 952 shares. Eligible employees applying in the reserved category will receive a discount of Rs 54 per share.