Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The Indian stock 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 IPOs draw near, the unlisted shares of these companies have seen a significant surge in their prices in the grey market. According to recent trends, the shares of Wakefit and Corona Remedies were trading at a premium of up to 18% in the grey market on Wednesday.
For those unfamiliar with the term, the grey market refers to the unofficial market where unlisted shares are traded before they are officially listed on the stock exchange. The prices at which these shares are traded in the grey market are often seen as an indicator of the demand and sentiment surrounding the company’s upcoming IPO. In this case, the high premiums at which Wakefit and Corona Remedies’ shares are trading suggest a strong demand for these IPOs.
Wakefit, which is looking to raise ₹1,289 crore through its IPO, has set a price band of ₹185-195 per share. The company’s IPO is expected to open on December 7 and will close on December 9. The funds raised through the IPO will be used to expand Wakefit’s business, improve its manufacturing capabilities, and enhance its distribution network. The home and furnishings startup has seen rapid growth in recent years, driven by the increasing demand for online furniture shopping.
On the other hand, Corona Remedies’ IPO is worth ₹655.37 crore and is expected to open on December 6. The company’s price band has been set at ₹60-65 per share, and the IPO will close on December 8. Corona Remedies is a pharmaceutical firm that manufactures and markets a range of medications, including antibiotics, antifungals, and antivirals. The company plans to use the funds raised through the IPO to expand its product portfolio, enhance its research and development capabilities, and strengthen its distribution network.
The strong demand for these IPOs is reflected in the high premiums at which their shares are trading in the grey market. According to market sources, Wakefit’s shares were trading at a premium of ₹30-35 per share, which is around 15-18% higher than the upper end of the price band. Similarly, Corona Remedies’ shares were trading at a premium of ₹10-12 per share, which is around 15-18% higher than the upper end of the price band.
The high premiums at which these shares are trading suggest that investors are confident about the growth prospects of these companies. Wakefit’s strong brand presence, extensive product range, and robust distribution network make it an attractive bet for investors. Similarly, Corona Remedies’ diverse product portfolio, strong research and development capabilities, and expanding distribution network make it a promising investment opportunity.
However, it’s worth noting that the grey market premiums are not always a reliable indicator of the IPO’s success. There have been instances where IPOs have failed to perform well despite strong grey market premiums. Therefore, investors should exercise caution and do their own research before investing in these IPOs.
In conclusion, the upcoming IPOs of Wakefit and Corona Remedies have generated significant excitement in the market. The high premiums at which their shares are trading in the grey market suggest a strong demand for these IPOs. While the grey market trends are encouraging, investors should remain cautious and carefully evaluate the companies’ financials, growth prospects, and industry trends before making an investment decision.
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