Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The initial public offering (IPO) season is in full swing, and two upcoming IPOs have been making waves in the grey market. Unlisted shares of Wakefit and Corona Remedies were trading at a premium of up to 18% on Wednesday, ahead of their IPOs next week. This significant surge in grey market premiums (GMPs) indicates a strong demand for these stocks among investors.
Home and furnishings startup Wakefit has set a price band of ₹185-195 per share for its ₹1,289 crore IPO. The company aims to utilize the proceeds from the IPO to expand its business, repay debts, and enhance its working capital. Wakefit’s IPO is expected to open on August 8 and close on August 10. With a strong brand presence and a growing market share, Wakefit’s IPO is highly anticipated among investors.
On the other hand, pharma firm Corona Remedies’ IPO is worth ₹655.37 crore. The company has fixed a price band of ₹65-70 per share for its IPO, which is scheduled to open on August 9 and close on August 11. Corona Remedies plans to use the IPO proceeds to fund its expansion plans, repay debts, and invest in new projects. The company’s IPO has also generated significant interest among investors, given its strong product portfolio and growth prospects.
The grey market premium (GMP) is an unofficial indicator of the demand for a stock before its listing. It represents the premium at which the unlisted shares of a company are trading in the grey market, compared to the issue price. A higher GMP indicates a stronger demand for the stock, which can lead to a higher listing price.
In the case of Wakefit and Corona Remedies, the GMPs have jumped up to 18% ahead of their IPOs. This suggests that investors are bullish about the prospects of these companies and are willing to pay a premium to get their hands on the shares. The strong demand for these stocks can be attributed to the growth potential of the companies, their competitive advantages, and the overall market sentiment.
The IPO market has been witnessing a surge in activity in recent times, with several companies lining up to raise funds from the public. The success of these IPOs will depend on various factors, including the company’s financial performance, industry trends, and the overall market conditions.
Wakefit’s IPO is expected to be a significant event in the startup ecosystem, as it will be one of the first home and furnishings startups to list on the stock exchanges. The company has a strong online presence and has been expanding its offline channels rapidly. With a focus on providing affordable and quality products, Wakefit has been able to disrupt the traditional home and furnishings market.
Corona Remedies, on the other hand, operates in the pharmaceutical sector, which has been a favorite among investors in recent times. The company has a diverse product portfolio and a strong presence in the domestic market. With a focus on research and development, Corona Remedies has been able to develop new products and expand its market share.
In conclusion, the GMPs of Wakefit and Corona Remedies have jumped up to 18% ahead of their IPOs, indicating a strong demand for these stocks among investors. With a strong brand presence, growth prospects, and competitive advantages, these companies are expected to perform well in the long term. However, investors should always do their own research and consult with financial advisors before making any investment decisions.
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