Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The Indian initial public offering (IPO) market is abuzz with activity, as two highly anticipated issues are set to open next week. 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 respective IPOs. This surge in grey market premium (GMP) is a positive indicator for the companies, suggesting strong investor interest and demand for their shares.
Home and furnishings startup Wakefit has set a price band of ₹185-195 per share for its ₹1,289 crore IPO. The company’s issue is expected to open on December 7 and close on December 11. Meanwhile, pharma firm Corona Remedies’ IPO is worth ₹655.37 crore, with a price band of ₹225-230 per share. The issue is slated to open on December 6 and close on December 10.
The grey market premium is an unofficial indicator of the demand for a company’s shares before they are listed on the stock exchanges. A high GMP suggests that investors are willing to pay a premium to get their hands on the shares, which can lead to a strong listing and subsequent price appreciation.
In the case of Wakefit, the GMP has jumped to ₹25-30 per share, which is approximately 14-15% of the upper end of the price band. This means that investors are willing to pay ₹220-225 per share, which is higher than the issue price of ₹195 per share. Similarly, Corona Remedies’ GMP has surged to ₹35-40 per share, which is around 15-17% of the upper end of the price band. This translates to a premium of ₹260-270 per share, compared to the issue price of ₹230 per share.
The strong GMPs of Wakefit and Corona Remedies suggest that investors are optimistic about the companies’ growth prospects and future potential. Wakefit, which operates in the home and furnishings space, has witnessed rapid growth in recent years, driven by increasing demand for online furniture shopping. The company’s revenue has grown from ₹166 crore in FY20 to ₹534 crore in FY23, with a compound annual growth rate (CAGR) of 83%.
Corona Remedies, on the other hand, is a pharma company that manufactures and markets a range of pharmaceutical products. The company has a strong presence in the domestic market and has also been expanding its exports to other countries. Corona Remedies’ revenue has grown from ₹143 crore in FY20 to ₹341 crore in FY23, with a CAGR of 43%.
The IPOs of Wakefit and Corona Remedies are expected to be well-received by investors, given their strong growth prospects and competitive advantages. The companies’ financial performance, industry trends, and management teams will be closely watched by investors, who will be looking for signs of sustainability and scalability.
In conclusion, the surge in GMPs of Wakefit and Corona Remedies ahead of their IPOs is a positive indicator of investor interest and demand. The companies’ strong growth prospects, competitive advantages, and financial performance make them attractive investment opportunities. As the IPO market continues to evolve, it will be interesting to see how these companies perform in the long term.
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