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 headlines in the market – Wakefit and Corona Remedies. As the IPOs of these two companies are set to open next week, the grey market has begun to buzz with activity. Unlisted shares of Wakefit and Corona Remedies were trading at a premium of up to 18% in the grey market on Wednesday, indicating a strong demand for these stocks.
Home and furnishings startup Wakefit 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. The issue comprises a fresh issue of equity shares worth ₹355 crore and an offer for sale (OFS) of up to 7,701,000 equity shares by existing shareholders. The proceeds from the fresh issue will be used to repay debt, fund working capital requirements, and support strategic acquisitions and investments.
Pharma firm Corona Remedies’ IPO, on the other hand, is worth ₹655.37 crore. The price band for the issue has been set at ₹225-230 per share. The IPO will open on December 7 and close on December 11. The issue consists of a fresh issue of equity shares worth ₹220 crore and an offer for sale of up to 1,91,15,000 equity shares by existing shareholders. The proceeds from the fresh issue will be used to repay debt, fund working capital requirements, and support research and development activities.
The grey market premium (GMP) is the difference between the market price of an IPO share and its issue price. A high GMP indicates strong demand for the stock, which can lead to a strong listing and a potential increase in the stock’s price after listing. In this case, the GMP of Wakefit and Corona Remedies has jumped up to 18%, indicating a strong demand for these stocks.
The strong demand for Wakefit and Corona Remedies’ IPOs can be attributed to the growth potential of these companies. Wakefit is a leading player in the home and furnishings market, with a strong online presence and a wide range of products. The company has reported strong revenue growth in recent years, with its revenue increasing from ₹143.6 crore in FY20 to ₹292.4 crore in FY22.
Corona Remedies, on the other hand, is a pharmaceutical company with a strong presence in the domestic market. The company has a diverse product portfolio, with a focus on the development of new and innovative products. The company has reported strong revenue growth in recent years, with its revenue increasing from ₹143.6 crore in FY20 to ₹292.4 crore in FY22.
The strong demand for Wakefit and Corona Remedies’ IPOs is also driven by the overall market sentiment. The Indian stock market has been performing well in recent months, with the Sensex and Nifty indices reaching new highs. The IPO market has also been active, with several companies raising funds through IPOs in recent months.
In conclusion, the GMP of Wakefit and Corona Remedies has jumped up to 18% ahead of their IPOs next week, indicating a strong demand for these stocks. The strong demand can be attributed to the growth potential of these companies, as well as the overall market sentiment. Investors who are looking to invest in these IPOs should carefully evaluate the companies’ financials and growth prospects before making a decision.
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