Corona Remedies lists at 38% premium: Should you sell?
What's the story
Corona Remedies, a pharmaceutical formulation company, made a strong debut on the National Stock Exchange(NSE) today. The company's shares were listed at ₹1,470 apiece on NSE, a premium of 38.42% over its initial public offering (IPO) price. The ₹655.37 crore issue was priced in a band of ₹1,008-₹1,062 per share and received massive subscription during the three-day period from December 8-10, with a subscription of 137.04 times.
Market performance
Corona Remedies' shares debut at 36.72% premium on BSE
On the Bombay Stock Exchange (BSE), Corona Remedies' shares debuted at ₹1,452 apiece, a premium of 36.72%. The company's market capitalization post-listing stood at ₹8,880 crore. The strong debut was better than expectations in the gray market, which had projected a 32% listing gain for the company. Prior to this, the issue had mobilized ₹195 crore from anchor investors.
Investment advice
Expert opinions on Corona Remedies's market debut
Shivani Nyati, Head of Wealth at Swastika Investmart, advised short-term investors to book partial profits while long-term investors can hold the rest. She emphasized the company's strong fundamentals and its presence in stable chronic therapy segments. Based in Ahmedabad, Corona Remedies develops, manufactures, and markets products in women's healthcare, cardio-diabeto, pain management, among other therapeutic areas with a diversified product portfolio of 67 brands.