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. Wakefit, a home and furnishings startup, and Corona Remedies, a pharmaceutical firm, are gearing up to raise funds through their respective IPOs. As the market awaits the opening of these issues, the grey market is already seeing a significant surge in demand for the unlisted shares of these companies. According to recent reports, the grey market premium (GMP) of Wakefit and Corona Remedies has jumped up to 18% ahead of their IPOs.
For the uninitiated, the grey market is an unofficial platform where unlisted shares of companies are traded before their official listing on the stock exchanges. The grey market premium (GMP) is the difference between the market price of a share and its issue price. A higher GMP indicates a stronger demand for the share in the grey market.
Wakefit, which has set a price band of ₹185-195 per share for its ₹1,289 crore IPO, is seeing a significant demand for its shares in the grey market. The company’s GMP has risen to ₹25-30 per share, which translates to a premium of around 13-15% over the issue price. This suggests that investors are bullish about the company’s prospects and are willing to pay a premium to get their hands on the shares before the official listing.
Similarly, Corona Remedies’ IPO, which is worth ₹655.37 crore, is also seeing a significant surge in demand in the grey market. The company’s GMP has jumped to ₹18-20 per share, which represents a premium of around 18% over the issue price. This indicates that investors are confident about the company’s growth prospects and are eager to invest in the pharmaceutical sector.
The strong demand for the shares of Wakefit and Corona Remedies in the grey market is a positive indication for the companies’ IPOs. It suggests that investors are optimistic about the companies’ prospects and are willing to invest in them. This, in turn, could lead to a successful IPO and a strong listing for both companies.
Wakefit, which is a leading player in the home and furnishings market, is looking to raise funds to expand its business and increase its market share. The company has a strong brand presence and a wide range of products, which has helped it to establish a loyal customer base. With the funds raised from the IPO, Wakefit plans to invest in its manufacturing capabilities, expand its distribution network, and enhance its digital presence.
Corona Remedies, on the other hand, is a pharmaceutical company that specializes in the development and manufacture of active pharmaceutical ingredients (APIs) and formulations. The company has a strong product portfolio and a significant presence in the domestic and international markets. With the funds raised from the IPO, Corona Remedies plans to invest in its research and development capabilities, expand its manufacturing facilities, and enhance its marketing and distribution network.
In conclusion, the strong demand for the shares of Wakefit and Corona Remedies in the grey market is a positive indication for the companies’ IPOs. With their respective IPOs set to open next week, investors are eagerly awaiting the opportunity to invest in these companies. The successful listing of these IPOs could provide a significant boost to the Indian IPO market, which has seen a slowdown in recent times.
As the market awaits the opening of these IPOs, it will be interesting to see how the companies perform in the long term. Will they be able to live up to the expectations of investors, or will they face challenges in the competitive market? Only time will tell. For now, the strong demand for their shares in the grey market is a positive sign, and investors are eagerly looking forward to the opportunity to invest in these companies.
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