Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The Indian IPO market is abuzz with excitement as two highly anticipated initial public offerings (IPOs) are set to hit the market next week. Unlisted shares of Wakefit and Corona Remedies were trading at a premium of up to 18% in the grey market on Wednesday, indicating strong investor interest in these companies. In this blog post, we will delve into the details of these IPOs, the companies behind them, and what investors can expect.
Wakefit: The Home and Furnishings Startup
Wakefit is a home and furnishings startup that has taken the Indian market by storm. Founded in 2016, the company has quickly become one of the leading players in the online furniture market. Wakefit’s product portfolio includes a wide range of home and office furniture, mattresses, and other furnishings. The company has a strong online presence, with a user-friendly website and mobile app that allows customers to browse and purchase products easily.
Wakefit’s IPO is worth ₹1,289 crore, with a price band of ₹185-195 per share. The company plans to use the proceeds from the IPO to expand its business, improve its supply chain, and enhance its technology infrastructure. Wakefit’s financial performance has been impressive, with revenue growth of over 50% in the last two years. The company’s net profit has also increased significantly, driven by its focus on operational efficiency and customer satisfaction.
Corona Remedies: The Pharma Firm
Corona Remedies is a pharmaceutical company that specializes in the manufacture and marketing of a wide range of medicines. The company was founded in 2004 and has since become one of the leading players in the Indian pharma industry. Corona Remedies’ product portfolio includes medicines for various therapeutic segments, including cardiac, diabetic, and respiratory diseases.
Corona Remedies’ IPO is worth ₹655.37 crore, with a price band that will be announced soon. The company plans to use the proceeds from the IPO to expand its manufacturing capacity, enhance its research and development capabilities, and improve its marketing and distribution network. Corona Remedies’ financial performance has been steady, with revenue growth of over 20% in the last two years. The company’s net profit has also increased, driven by its focus on quality and affordability.
Grey Market Premiums
The grey market is an unofficial market where unlisted shares are traded before they are listed on the stock exchanges. The grey market premium (GMP) is the difference between the market price of the unlisted share and its face value. A high GMP indicates strong investor interest in the company and its IPO.
In the case of Wakefit and Corona Remedies, the GMPs have jumped up to 18% ahead of their IPOs next week. This means that investors are willing to pay a premium of up to 18% to purchase these shares before they are listed on the stock exchanges. The high GMPs are a positive indicator for the companies, as they suggest that investors are confident about their growth prospects and financial performance.
Investor Interest
The strong investor interest in Wakefit and Corona Remedies’ IPOs is driven by several factors. First, both companies have a strong track record of financial performance, with revenue growth and net profit increasing significantly in the last two years. Second, both companies have a solid business model, with a focus on quality, affordability, and customer satisfaction. Third, the IPOs are priced competitively, with a price band that is attractive to investors.
Conclusion
In conclusion, the IPOs of Wakefit and Corona Remedies are highly anticipated events in the Indian IPO market. The strong investor interest in these companies, as reflected in the high GMPs, is driven by their solid financial performance, business model, and competitive pricing. As the IPOs are set to open next week, investors are eagerly waiting to participate in these issues. Whether you are a seasoned investor or a newcomer to the stock market, these IPOs offer an exciting opportunity to invest in two promising companies with strong growth prospects.
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