Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The Indian initial public offering (IPO) market is abuzz with excitement as two highly anticipated IPOs 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, indicating strong investor interest in these companies. In this blog post, we will delve into the details of these IPOs and what they mean for investors.
First, let’s take a look at Wakefit, a home and furnishings startup that 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. Wakefit’s IPO is a fresh issue of equity shares, which means that the company will use the proceeds from the IPO to fund its business expansion plans. The company has stated that it plans to use the funds to expand its manufacturing capacity, improve its logistics and distribution network, and enhance its brand visibility through marketing and advertising campaigns.
Wakefit’s business model is focused on providing affordable and stylish home furnishings to the Indian market. The company has a strong online presence and has also established a network of retail stores across the country. Wakefit’s products are designed to cater to the needs of the modern Indian consumer, who is looking for high-quality and affordable home furnishings. The company’s commitment to quality and customer satisfaction has earned it a loyal customer base, and its revenue has been growing rapidly over the past few years.
On the other hand, we have Corona Remedies, a pharma firm that is looking to raise ₹655.37 crore through its IPO. The company’s IPO is expected to open on December 8 and close on December 12. Corona Remedies’ IPO is also a fresh issue of equity shares, and the company plans to use the proceeds to fund its business expansion plans, including the expansion of its manufacturing capacity and the development of new products.
Corona Remedies is a leading player in the Indian pharmaceutical industry, with a strong portfolio of products that cater to various therapeutic segments. The company has a strong research and development team that is focused on developing new and innovative products, and it has a robust distribution network that enables it to reach customers across the country. Corona Remedies’ commitment to quality and customer satisfaction has earned it a reputation as a reliable and trustworthy player in the pharmaceutical industry.
The grey market premium (GMP) is an important indicator of investor interest in an IPO. The GMP is the premium at which the unlisted shares of a company are trading in the grey market, compared to the issue price of the IPO. A high GMP indicates strong investor interest in the company, and it can be a positive sign for the IPO. In the case of Wakefit and Corona Remedies, the GMP has jumped up to 18%, indicating that investors are eager to get their hands on these shares.
The strong investor interest in Wakefit and Corona Remedies’ IPOs can be attributed to several factors. Firstly, both companies have a strong business model and a proven track record of growth. Wakefit’s commitment to providing affordable and stylish home furnishings has earned it a loyal customer base, while Corona Remedies’ strong portfolio of products and robust distribution network have made it a leading player in the pharmaceutical industry.
Secondly, the Indian IPO market has been on a roll in recent times, with several companies listing at a premium to their issue price. This has created a sense of optimism among investors, who are looking to invest in companies that have the potential to deliver strong returns. Wakefit and Corona Remedies’ IPOs are expected to be no exception, and investors are eager to get their hands on these shares.
Finally, the pricing of the IPOs is also an important factor that has contributed to the strong investor interest. Wakefit’s price band of ₹185-195 per share is considered to be reasonable, given the company’s growth prospects and financial performance. Similarly, Corona Remedies’ IPO price band is also considered to be attractive, given the company’s strong portfolio of products and robust distribution network.
In conclusion, the strong investor interest in Wakefit and Corona Remedies’ IPOs is a positive sign for the Indian IPO market. Both companies have a strong business model and a proven track record of growth, and their IPOs are expected to be highly successful. The grey market premium of up to 18% is a clear indication of the strong demand for these shares, and investors who are looking to invest in these companies should keep a close eye on the IPOs.
As the IPOs are set to open next week, investors should carefully evaluate the company’s financial performance, business model, and growth prospects before making an investment decision. It is also important to keep in mind that the IPO market can be volatile, and investors should be prepared for any eventuality.
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