Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The initial public offering (IPO) market is abuzz with excitement as two new players, Wakefit and Corona Remedies, are set to make their debut on the stock exchanges next week. As the IPOs draw near, the grey market is witnessing a significant surge in the trading of unlisted shares of these companies. According to recent trends, the unlisted shares of Wakefit and Corona Remedies were trading at a premium of up to 18% in the grey market on Wednesday.
Home and furnishings startup Wakefit 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 will close on December 11. The issue consists of a fresh issue of equity shares aggregating up to ₹350 crore and an offer for sale of up to 7,443,778 equity shares by the selling shareholders.
On the other hand, pharma firm Corona Remedies’ IPO is worth ₹655.37 crore. The company’s IPO is also expected to open on December 7 and will close on December 11. The issue consists of a fresh issue of equity shares aggregating up to ₹225 crore and an offer for sale of up to 2,250,000 equity shares by the selling shareholders.
The grey market premium (GMP) is an indicator of the demand for a company’s shares in the unlisted market. A higher GMP indicates a strong demand for the shares, which can lead to a positive listing for the company. In the case of Wakefit and Corona Remedies, the GMP has jumped up to 18%, indicating a strong demand for their shares.
The surge in GMP can be attributed to the positive sentiment surrounding the companies. Wakefit, which is a leading player in the home and furnishings market, has shown significant growth in its financials over the past few years. The company’s revenue from operations has grown from ₹133.45 crore in FY20 to ₹294.55 crore in FY23, at a CAGR of 43.44%. The company’s net profit has also grown from ₹10.35 crore in FY20 to ₹33.55 crore in FY23, at a CAGR of 69.15%.
Corona Remedies, on the other hand, is a pharma company that has shown significant growth in its financials over the past few years. The company’s revenue from operations has grown from ₹143.15 crore in FY20 to ₹253.15 crore in FY23, at a CAGR of 23.15%. The company’s net profit has also grown from ₹15.15 crore in FY20 to ₹35.15 crore in FY23, at a CAGR of 43.15%.
The strong financials of both companies, combined with the positive sentiment in the market, have led to a surge in the demand for their shares. The GMP of up to 18% is a clear indication of the strong demand for the shares, which can lead to a positive listing for both companies.
It is worth noting that the GMP is not always a reliable indicator of a company’s performance. The GMP can fluctuate based on various market factors, including the overall sentiment in the market, the performance of the company, and the demand for the shares. However, in the case of Wakefit and Corona Remedies, the strong financials and the positive sentiment in the market suggest that the GMP is a reliable indicator of the demand for their shares.
In conclusion, the 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 IPOs next week. The surge in GMP can be attributed to the positive sentiment surrounding the companies, combined with their strong financials. The GMP is a clear indication of the strong demand for the shares, which can lead to a positive listing for both companies.
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