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, indicating strong investor interest in these upcoming IPOs. In this article, we will delve into the details of these issues and explore the factors driving the surge in their grey market premiums.
Wakefit’s IPO: A Home and Furnishings Startup
Wakefit, a home and furnishings startup, has set a price band of ₹185-195 per share for its ₹1,289 crore IPO. The issue is expected to open on December 7 and close on December 11. The company aims to utilize the proceeds from the IPO to fund its expansion plans, repay debts, and enhance its working capital. Wakefit’s product portfolio includes mattresses, furniture, and home decor items, catering to the growing demand for online home furnishings in India.
The company’s financial performance has been impressive, with revenue growth of 44% in the fiscal year 2022. The startup has also achieved profitability, with a net profit of ₹13.4 crore in the same period. These factors have contributed to the strong investor interest in Wakefit’s IPO, with its grey market premium (GMP) rising to 15-18% ahead of the issue opening.
Corona Remedies’ IPO: A Pharma Firm
Pharma firm Corona Remedies’ IPO is worth ₹655.37 crore, with a price band of ₹60-65 per share. The issue is scheduled to open on December 8 and close on December 12. The company plans to use the IPO proceeds to fund its capital expenditure, repay debts, and enhance its working capital. Corona Remedies is a manufacturer and marketer of pharmaceutical products, with a presence in both domestic and international markets.
The company’s financial performance has been steady, with revenue growth of 10% in the fiscal year 2022. Corona Remedies has also achieved profitability, with a net profit of ₹25.4 crore in the same period. The pharma firm’s grey market premium has risen to 15-18% ahead of the IPO, indicating strong investor interest in the issue.
Grey Market Premium: A Barometer of Investor Interest
The grey market premium (GMP) is an unofficial measure of the demand for an IPO. It represents the premium at which unlisted shares of a company are trading in the grey market, ahead of the IPO. A high GMP indicates strong investor interest in the issue, while a low GMP suggests lukewarm interest.
In the case of Wakefit and Corona Remedies, the GMP has risen to 15-18% ahead of their IPOs, indicating robust investor interest in these issues. This is a positive sign for the companies, as it suggests that investors are willing to pay a premium for their shares.
IPO Market Trends
The Indian IPO market has been witnessing a surge in activity, with several high-profile issues lined up in the coming weeks. The IPO market trends suggest that investors are looking for growth-oriented companies with strong financial performance and robust business models.
Wakefit and Corona Remedies fit into this category, with their impressive financial performance and growth potential. The companies’ ability to achieve profitability and demonstrate revenue growth has contributed to the strong investor interest in their IPOs.
Conclusion
In conclusion, the unlisted shares of Wakefit and Corona Remedies are trading at a premium of up to 18% in the grey market, ahead of their IPOs next week. The strong investor interest in these issues is driven by the companies’ impressive financial performance, growth potential, and robust business models.
As the IPO market continues to witness a surge in activity, investors are looking for growth-oriented companies with strong fundamentals. Wakefit and Corona Remedies are well-positioned to capitalize on this trend, with their IPOs expected to open next week.
About the Author
