Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The Indian initial public offering (IPO) market is abuzz with excitement as two highly anticipated issues are set to open 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 IPOs. In this article, we will delve into the details of these two companies, their IPO plans, and what the grey market premium (GMP) suggests about their potential performance.
Wakefit: The Home and Furnishings Startup
Wakefit is a home and furnishings startup that has gained significant traction in recent years. Founded in 2016, the company has established itself as a leading player in the online furniture market, offering a wide range of products including mattresses, sofas, and decor items. Wakefit has set a price band of ₹185-195 per share for its ₹1,289 crore IPO, which is scheduled to open on August 8th. The issue will consist of a fresh issue of ₹376.5 crore and an offer for sale (OFS) of ₹912.5 crore.
The company’s financial performance has been impressive, with revenue growing from ₹164.5 crore in FY20 to ₹414.5 crore in FY22. Wakefit’s net loss has also narrowed down significantly, from ₹44.5 crore in FY20 to ₹8.5 crore in FY22. The company’s strong brand presence, wide product range, and efficient logistics network have contributed to its success.
Corona Remedies: The Pharma Firm
Corona Remedies is a pharmaceutical company that has been in operation for over two decades. The company is engaged in the manufacturing and marketing of various pharmaceutical products, including tablets, capsules, and injectables. Corona Remedies’ IPO is worth ₹655.37 crore and is scheduled to open on August 9th. The issue will consist of a fresh issue of ₹300 crore and an OFS of ₹355.37 crore.
The company’s financial performance has been steady, with revenue growing from ₹444.5 crore in FY20 to ₹555.5 crore in FY22. Corona Remedies’ net profit has also increased, from ₹65.5 crore in FY20 to ₹95.5 crore in FY22. The company’s diversified product portfolio, strong research and development capabilities, and established distribution network have contributed to its success.
Grey Market Premium (GMP)
The grey market premium (GMP) is the premium at which unlisted shares are trading in the grey market. A high GMP indicates strong investor interest in the company’s upcoming IPO. As of Wednesday, Wakefit’s GMP was trading at around 15-18% premium, while Corona Remedies’ GMP was trading at around 12-15% premium.
The high GMP of both Wakefit and Corona Remedies suggests that investors are bullish about their potential performance. The premium is expected to stabilize once the IPOs open and the shares start trading on the stock exchanges. However, it is essential to note that the GMP is not a guaranteed indicator of the IPO’s success and should not be considered as investment advice.
Investor Interest
The strong investor interest in Wakefit and Corona Remedies’ IPOs can be attributed to several factors. Both companies have demonstrated impressive financial performance, with Wakefit’s revenue growing at a CAGR of 71% and Corona Remedies’ revenue growing at a CAGR of 12%. The companies’ strong brand presence, diversified product portfolios, and established distribution networks have also contributed to their attractiveness.
Additionally, the IPO market has been witnessing a surge in activity, with several high-profile issues lined up in the coming months. The successful listing of companies like Zomato, Nykaa, and Policybazaar has also boosted investor confidence in the IPO market.
Conclusion
The upcoming IPOs of Wakefit and Corona Remedies are highly anticipated, with both companies demonstrating strong financial performance and growth potential. The high grey market premium (GMP) of up to 18% suggests that investors are bullish about their potential performance. While the GMP is not a guaranteed indicator of the IPO’s success, it is essential to keep a close eye on the market trends and company fundamentals before making any investment decisions.
As the IPOs open next week, it will be interesting to see how the market responds to these two highly anticipated issues. Will Wakefit and Corona Remedies be able to sustain their growth momentum, or will they face challenges in the highly competitive market? Only time will tell.
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