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 upcoming issues. In this article, we will delve into the details of these IPOs and what they mean for investors.
First, let’s take a look at Wakefit, a home and furnishings startup that has set a price band of ₹185-195 per share for its ₹1,289 crore IPO. The company’s issue is expected to open on December 7 and close on December 11. The IPO consists of a fresh issue of ₹710 crore and an offer for sale of ₹579 crore by existing shareholders. Wakefit’s IPO is expected to be a significant event in the Indian startup ecosystem, as it will provide a liquidity event for the company’s investors and employees.
On the other hand, we have Corona Remedies, a pharmaceutical firm that is looking to raise ₹655.37 crore through its IPO. The company’s issue is expected to open on December 6 and close on December 10. The IPO consists of a fresh issue of ₹400 crore and an offer for sale of ₹255.37 crore by existing shareholders. Corona Remedies’ IPO is expected to provide the company with the necessary funds to expand its operations and improve its financial performance.
The grey market premium (GMP) is an important indicator of investor interest in an IPO. The GMP is the difference between the market price of the unlisted shares and the issue price of the IPO. A high GMP indicates strong demand for the issue, while a low GMP indicates weak demand. In the case of Wakefit and Corona Remedies, the GMP is up to 18%, which suggests that investors are eager to get their hands on these shares.
The strong GMP of Wakefit and Corona Remedies’ IPOs can be attributed to several factors. Firstly, both companies have a strong track record of financial performance. Wakefit has reported a revenue growth of 50% in the last fiscal year, while Corona Remedies has reported a revenue growth of 20%. Secondly, both companies have a strong management team with a proven track record of success. Thirdly, the IPO market has been performing well in recent times, with several issues getting oversubscribed in recent weeks.
However, it’s worth noting that the GMP is not always a reliable indicator of the success of an IPO. There have been cases where the GMP has been high, but the IPO has still failed to perform well in the long term. Therefore, investors should exercise caution and do their own research before investing in any IPO.
In conclusion, the upcoming IPOs of Wakefit and Corona Remedies are highly anticipated events in the Indian IPO market. The strong GMP of these issues suggests that investors are eager to get their hands on these shares. However, investors should exercise caution and do their own research before investing in any IPO. With the IPO market performing well in recent times, it will be interesting to see how these issues perform in the long term.
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