ADIA joins Corona Remedies block deal purchase

Abu Dhabi Investment Authority has emerged among institutional buyers in a ₹777 crore open-market transaction involving a 7.3 per cent stake in Corona Remedies, marking another Gulf-linked investment in the country’s fast-growing listed pharmaceutical space.

The transaction was executed through block deals on the National Stock Exchange at ₹1,730 per share, with shares sold mainly by Sepia Investments, an affiliate of ChrysCapital, and Anchor Partners. ADIA purchased 39,130 shares at the same price, putting the sovereign investor’s individual outlay at about ₹6.77 crore. The broader deal, however, was led by a larger pool of domestic and overseas institutions that absorbed nearly 44.9 lakh shares between them.

HDFC Mutual Fund was the largest buyer, acquiring 24.5 lakh shares worth about ₹424 crore. Other buyers included Aditya Birla Sun Life Mutual Fund, Invesco Mutual Fund, Kotak Mahindra Mutual Fund, Aberdeen Asian Smaller Companies Investment Trust, Aberdeen Standard SICAV I – Asian Smaller Companies Fund, Factory Mutual Insurance Company and WhiteOak-linked emerging-market funds. The distribution of shares among a broad set of investors points to sustained institutional interest in the company after its market debut in December.

Sepia Investments sold 43.28 lakh shares, equivalent to about 7.07 per cent of Corona Remedies, for roughly ₹749 crore. Anchor Partners sold 1.61 lakh shares, representing around 0.26 per cent, for about ₹28 crore. After the sale, Sepia’s holding fell from 19.76 per cent to about 12.69 per cent, indicating partial monetisation rather than a full exit by the ChrysCapital-linked vehicle.

Corona Remedies’ shares gained after the deal, reflecting market approval of the institutional participation, though the stock gave up part of its intraday surge. The block deal took place at ₹1,730 a share, while the counter traded above that level in the following session, suggesting that buyers entered at a discount to the market’s post-deal price.

The Ahmedabad-based company, founded in 2004, operates in branded pharmaceutical formulations and has built a presence in therapies including women’s healthcare, cardio-diabetic care, pain management, gastrointestinal treatment and vitamins. Its business is weighted towards the domestic prescription market, reducing exposure to export-related tariff and regulatory volatility that affects some larger drugmakers.

Corona Remedies listed on the BSE and NSE in December 2025 after a ₹655 crore initial public offering that was structured entirely as an offer for sale. The IPO was priced at ₹1,062 per share and the stock listed at a premium of more than 38 per cent, giving early public investors a strong debut. The latest secondary transaction follows that listing and provides liquidity to pre-IPO investors while widening institutional ownership.

The company’s financial profile helped draw attention during its listing. For the year ended March 2025, total revenue stood above ₹1,200 crore, while profit after tax was close to ₹149 crore and EBITDA was about ₹246 crore. Margins remained below some larger listed peers, but revenue growth, brand depth and specialist-prescription exposure have supported investor interest.

ADIA’s participation is modest in value compared with the larger buyers, but its presence carries signalling weight. The Abu Dhabi sovereign investor has been expanding exposure across public and private markets, including financial services, infrastructure, renewables, real estate, consumer businesses and healthcare. Its GIFT City presence has also strengthened its ability to route and manage investment activity connected with the country’s capital markets.

For Corona Remedies, the deal improves free float and places more shares with long-only institutions, mutual funds and specialist emerging-market investors. Such ownership can broaden market depth, although it can also raise scrutiny over earnings delivery, product concentration and valuation.