Corona Remedies IPO GMP: The IPO of Corona Remedies, a fast growing company in the pharmaceutical sector, hit the market yesterday on 8th December. The issue is getting good response from investors. By 12 noon on Tuesday, Corona Remedies IPO had been subscribed 2.72 times. Investors can bid for the shares of this issue till December 10. This IPO is creating a stir in the gray market too and its shares are trading at a premium of 24 percent.
The company is going to raise ₹655.37 crore through this issue. This issue is completely an Offer for Sale (OFS) and the company has not issued any new shares. Under this OFS, promoters and existing investors will sell a total of 61.71 lakh shares. The allotment of the IPO will be done on December 11, while its shares are likely to be listed on BSE and NSE on December 15.
What is the price band of Corona Remedies IPO?
The price band of Corona Remedies IPO has been fixed at ₹ 1,008 to ₹ 1,062 per share. There are 14 shares in one lot of the issue and it is mandatory for retail investors to bid for at least one lot. Investors at the upper price band will have to invest at least ₹ 14,868 in this IPO.
What is the subscription status of Corona Remedies IPO?
According to NSE data, till 12 noon on Tuesday, the issue has been applied a total of 2.72 times. So far the issue has received bids for 61,93,180 shares against the 21,39,573 shares on offer. The category of non-institutional investors has been booked the highest at 5.89. The category of retail investors has been subscribed 2.89 times.
What is the GMP of Corona Remedies IPO?
There is a lot of movement in the gray market regarding the non-listed shares of Corona Remedies. According to IPOwatch.in, a gray market tracking website, the company’s shares were trading at a premium of Rs 262 on Tuesday. This indicates that the shares may be listed at Rs 1302, which is about 24 percent more than the upper end of the issue price band of Rs 1062.
Should you invest money in Corona Remedies IPO or not?
Arihant Capital says that Corona Remedies business can show strong growth in the long run. The brokerage says that at the upper price band of ₹1,062, the company’s P/E ratio comes to 43.5x, which is based on FY25 EPS of ₹24.4. The brokerage has advised to ‘subscribe’ to this IPO. SBI Securities Brokerage says that the return ratio of the company is good. The balance sheet is strong and the valuation is also good as per its sector. Therefore, the brokerage has advised investors to subscribe to the IPO at the cut-off price.
Corona Remedies IPO Reservation
35% of the issue has been reserved for retail investors, 50% for Qualified Institutional Buyers (QIBs) and the remaining 15% for non-institutional investors.
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