Weak Share Market, Strong Corona Remedies IPO Debut: Shares Listed with 36-38% Premium. High Subscription and Strong GMP Delivered Good Returns to Investors.
IPO Listing: Despite a downturn in the share market, Gujarat-based pharmaceutical company Corona Remedies has provided investors with a b listing. The company's shares were listed with a premium on both the BSE and NSE exchanges on Monday, December 15th. Amidst market pressure, Corona Remedies IPO made a remarkable entry, winning investor confidence.
How did the Listing Perform on BSE and NSE?
Corona Remedies shares were listed on the BSE at a price of ₹1,452. This represents a premium of ₹390, or approximately 36%, over the upper end of the issue price of ₹1,062. On the NSE, the shares were listed at ₹1,470, which is ₹408, or almost 38%, higher than the issue price. Such a listing, despite a weak market, is considered a major success for investors.
Following the listing, the shares traded nearly 2% below their listing price in early trading, but IPO investors still benefited from a good profit.
How Much Profit Per Lot?
Investors who were allotted one lot in the Corona Remedies IPO received a significant benefit on the day of listing. Based on the NSE listing price, a profit of approximately ₹5,712 was realized per lot. This b return in a weak market environment was a relief for investors.
GMP Estimates Exceeded by Listing
The listing of Corona Remedies also surpassed estimates for the Grey Market Premium (GMP). Prior to the listing, the company's unlisted shares were quoted at approximately ₹1,404.5 in the grey market. This indicated that the GMP could be around ₹342.5, or approximately 32.23%, compared to the issue price.
However, the actual listing performed better than this, with shares reaching ₹1,470 on the NSE. This means the company’s listing outperformed market expectations.
Corona Remedies IPO Received Overwhelming Response
The Corona Remedies IPO received a record-breaking response from investors. The IPO opened for subscription on Monday, December 8th, and closed on Wednesday, December 10th. By the final day, the issue was oversubscribed a total of 144.54 times.
This high level of subscription demonstrates the b investor confidence in the company's business model and the growth of the pharmaceutical sector.
How Much Fund Was Raised Through the IPO?
The company offered 6.2 lakh shares through an Offer For Sale (OFS) in this IPO. Through this, Corona Remedies aimed to raise a total of ₹655.3 crore. The entire issue was based on an Offer For Sale, meaning the proceeds went to the company's existing shareholders.
What Do the Subscription Figures Say?
According to NSE data, there was b bidding for the Corona Remedies IPO. Against the 43,36,298 shares offered in the issue, applications were received for 62,67,60,106 shares. This figure alone demonstrates investor enthusiasm.
The highest interest came from Qualified Institutional Buyers (QIBs). This category was subscribed 293.80 times. There was also b demand in the Non-Institutional Investors (NII) category, which was subscribed 220.18 times.
Retail investors also participated enthusiastically. The retail category was oversubscribed 30.39 times, indicating b confidence in the issue among individual investors.
Why Was This Listing Special in a Weak Market?
There was pressure in the share market on Monday. Both the Sensex and Nifty saw volatility. In such a situation, the listing of an IPO with such a b premium is a significant achievement in itself.
The pharmaceutical sector is generally considered a defensive sector. During times of market uncertainty, investors prioritize companies in sectors where demand remains stable. This confidence is considered a major reason behind the b listing of Corona Remedies.
