Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The initial public offering (IPO) season is in full swing, with several companies lining up to raise funds from the public. Two such companies, Wakefit and Corona Remedies, are set to launch their IPOs next week, and the grey market is already abuzz with activity. The unlisted shares of these companies were trading at a premium of up to 18% on Wednesday, indicating strong demand and optimism among investors.
Wakefit, a home and furnishings startup, has set a price band of ₹185-195 per share for its ₹1,289 crore IPO. The company’s IPO is expected to open on December 7 and close on December 11. On the other hand, pharma firm Corona Remedies’ IPO is worth ₹655.37 crore, and its price band is yet to be announced. The IPO is expected to open on December 6 and close on December 10.
The grey market premium (GMP) is the difference between the market price of a share and its issue price. A high GMP indicates that investors are willing to pay a premium to buy the shares before they are listed on the stock exchanges. In the case of Wakefit and Corona Remedies, the GMP has jumped up to 18%, which is a significant premium.
The strong demand for these IPOs can be attributed to the growing demand for home and furnishings products, as well as the increasing importance of the pharmaceutical sector in the country. Wakefit, which is a leading player in the home and furnishings market, has seen significant growth in recent years, driven by the increasing demand for online furniture shopping.
Corona Remedies, on the other hand, is a pharma company that has a strong presence in the domestic market. The company has a diversified product portfolio, which includes a range of pharmaceutical formulations and active pharmaceutical ingredients (APIs). The pharma sector has been one of the best-performing sectors in recent years, driven by the increasing demand for healthcare services and products.
The IPO market has been robust in recent years, with several companies raising funds from the public. The response to these IPOs has been overwhelming, with many of them getting subscribed multiple times. The strong demand for IPOs can be attributed to the growing investor base in the country, as well as the increasing awareness about the stock market.
However, it’s worth noting that the IPO market can be volatile, and investors should exercise caution while investing in these issues. The grey market premium is not always a reliable indicator of the company’s performance, and investors should do their own research before investing in any IPO.
In the case of Wakefit and Corona Remedies, the GMP has jumped up to 18%, which is a significant premium. However, it’s worth noting that the GMP can fluctuate depending on the market conditions and the demand for the IPO. Investors should keep an eye on the GMP and the overall market sentiment before investing in these IPOs.
In conclusion, the unlisted shares of Wakefit and Corona Remedies were trading at a premium of up to 18% in the grey market on Wednesday, ahead of their IPOs next week. The strong demand for these IPOs can be attributed to the growing demand for home and furnishings products, as well as the increasing importance of the pharmaceutical sector in the country. However, investors should exercise caution while investing in these issues and do their own research before investing.
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