Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The Indian initial public offering (IPO) market is abuzz with activity, as several companies are gearing up to launch their public issues in the coming weeks. Two such companies, Wakefit and Corona Remedies, are set to launch their IPOs next week, and the grey market is already indicating a strong demand for their shares. According to recent reports, 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.
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. The IPO consists of a fresh issue of ₹355 crore and an offer for sale of ₹934 crore by existing shareholders. Wakefit plans to use the proceeds from the fresh issue to repay debt, fund working capital requirements, and for general corporate purposes.
On the other hand, pharma firm Corona Remedies’ IPO is worth ₹655.37 crore. The company’s issue is also expected to open on December 7 and close on December 11. The IPO consists of a fresh issue of ₹200 crore and an offer for sale of ₹455.37 crore by existing shareholders. Corona Remedies plans to use the proceeds from the fresh issue to fund its expansion plans, repay debt, and for general corporate purposes.
The grey market premium (GMP) is an indicator of the demand for a company’s shares before they are listed on the stock exchanges. A high GMP indicates that there is a strong demand for the shares, and investors are willing to pay a premium to get their hands on them. In the case of Wakefit and Corona Remedies, the GMP of up to 18% suggests that investors are bullish about the prospects of these companies.
Wakefit is a leading player in the home and furnishings market in India. The company offers a wide range of products, including mattresses, furniture, and home decor items. Wakefit has a strong online presence, and its products are available on various e-commerce platforms. The company has also partnered with several offline retailers to expand its reach.
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 its products are also exported to several countries. Corona Remedies has a diverse product portfolio, which includes tablets, capsules, and injectables.
Both Wakefit and Corona Remedies have shown strong growth in recent years, driven by their focus on innovation, quality, and customer satisfaction. Wakefit’s revenue has grown at a CAGR of 100% over the past three years, while Corona Remedies’ revenue has grown at a CAGR of 20% over the same period.
The IPOs of Wakefit and Corona Remedies are expected to be highly subscribed, given the strong demand for their shares in the grey market. The companies’ focus on growth, innovation, and customer satisfaction has resonated with investors, who are willing to pay a premium to get their hands on their shares.
In conclusion, the GMPs of Wakefit and Corona Remedies have jumped up to 18% ahead of their IPOs, indicating a strong demand for their shares. The companies’ focus on growth, innovation, and customer satisfaction has driven their success, and investors are bullish about their prospects. With their IPOs set to open next week, it will be interesting to see how the market responds to these issues.
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