Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The Indian initial public offering (IPO) market is gearing up for another exciting week, with two highly anticipated issues set to open for subscription. Home and furnishings startup Wakefit and pharmaceutical firm Corona Remedies are all set to launch their respective IPOs next week, and the grey market is already abuzz with activity. Unlisted shares of both companies were trading at a premium of up to 18% on Wednesday, indicating strong investor interest in these issues.
Wakefit, which is backed by prominent investors such as Sequoia Capital and Verlinvest, has set a price band of ₹185-195 per share for its ₹1,289 crore IPO. The company’s issue will consist of a fresh issue of equity shares worth ₹370 crore, as well as an offer for sale (OFS) of ₹919 crore by existing shareholders. The proceeds from the fresh issue will be used to repay debt, fund capital expenditure, and support the company’s growth plans.
On the other hand, Corona Remedies’ IPO is worth ₹655.37 crore, and the company has set a price band of ₹225-230 per share. The issue will consist of a fresh issue of equity shares worth ₹300 crore, as well as an OFS of ₹355.37 crore by existing shareholders. The proceeds from the fresh issue will be used to fund the company’s expansion plans, repay debt, and support its working capital requirements.
The grey market premium (GMP) is a key indicator of investor interest in an IPO, and it represents the difference between the market price of the unlisted shares and the issue price. A higher GMP indicates stronger demand for the issue, and it can be a positive sign for the company’s listing prospects.
In the case of Wakefit and Corona Remedies, the GMP has jumped up to 18% ahead of their IPOs, suggesting that investors are bullish about the prospects of these companies. The GMP is subject to change based on market conditions, and it may fluctuate until the issue opens for subscription.
Wakefit’s IPO is expected to be a highly subscribed issue, given the company’s strong growth prospects and its position in the Indian home and furnishings market. The company has reported strong revenue growth in recent years, and its financials are expected to continue improving in the coming years.
Corona Remedies, on the other hand, is a pharmaceutical firm that specializes in the development and manufacture of active pharmaceutical ingredients (APIs) and intermediates. The company has a strong product portfolio and a significant presence in the Indian pharmaceutical market. Its IPO is expected to be well-received by investors, given the company’s growth prospects and its position in the industry.
The IPO market in India has been highly active in recent years, with several companies raising capital through public issues. The market has been driven by strong investor demand, and the trend is expected to continue in the coming months.
In conclusion, the GMP of Wakefit and Corona Remedies has jumped up to 18% ahead of their IPOs, indicating strong investor interest in these issues. The IPOs are expected to be highly subscribed, given the companies’ growth prospects and their positions in their respective industries. Investors who are looking to participate in these issues should carefully evaluate the companies’ financials and growth prospects before making a decision.
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