Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The Indian primary market is abuzz with activity as several companies are gearing up to launch their initial public offerings (IPOs) in the coming weeks. Two companies that are set to make their debut on the bourses are Wakefit, a home and furnishings startup, and Corona Remedies, a pharmaceutical firm. As the IPOs of these companies are set to open next week, the unlisted shares of Wakefit and Corona Remedies were trading at a premium of up to 18% in the grey market on Wednesday.
For the uninitiated, the grey market is an unofficial platform where unlisted shares of companies are traded before they are listed on the stock exchanges. The prices at which these shares are traded in the grey market are often seen as an indicator of the demand for the IPO and the potential listing gains that investors can expect.
Wakefit’s IPO details
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 set to open on December 7 and will close on December 11. The company plans to use the proceeds from the IPO to repay debt, fund its expansion plans, and enhance its brand visibility.
Wakefit’s IPO has generated significant interest among investors, and the company’s shares were trading at a premium of 15-18% in the grey market on Wednesday. This suggests that investors are expecting a strong listing for the company, and the shares are likely to debut at a price that is higher than the upper end of the price band.
Corona Remedies’ IPO details
Corona Remedies, a pharmaceutical firm, is set to launch its IPO next week, with the issue opening on December 8 and closing on December 12. The company’s IPO is worth ₹655.37 crore, and the price band has been set at ₹60-65 per share.
Corona Remedies’ shares were also trading at a premium in the grey market, with prices ranging from ₹70 to ₹72 per share. This represents a premium of 15-18% over the upper end of the price band, suggesting that investors are expecting a strong listing for the company.
Reasons for the premium
So, what are the reasons behind the premium at which Wakefit and Corona Remedies’ shares are trading in the grey market? There are several factors that are contributing to this premium.
Firstly, both Wakefit and Corona Remedies are operating in high-growth industries, with significant potential for expansion and growth. Wakefit is a leader in the home and furnishings space, and the company’s products have gained significant traction among consumers. Corona Remedies, on the other hand, has a strong portfolio of pharmaceutical products, and the company is well-positioned to capitalize on the growing demand for healthcare services in India.
Secondly, both companies have demonstrated strong financial performance in recent years, with revenue and profit growth that is significantly higher than their peers. Wakefit’s revenue has grown at a CAGR of over 100% in the past three years, while Corona Remedies’ revenue has grown at a CAGR of over 20% during the same period.
Finally, the IPO market has been strong in recent months, with several companies listing at a premium to their issue prices. This has created a sense of optimism among investors, who are expecting strong listings for Wakefit and Corona Remedies as well.
Investor interest
The premium at which Wakefit and Corona Remedies’ shares are trading in the grey market is also a reflection of the strong interest among investors in these IPOs. Both companies have generated significant interest among institutional and retail investors, who are looking to capitalize on the growth potential of these companies.
Wakefit’s IPO, in particular, has generated significant interest among investors, with the company’s unique business model and strong financial performance making it an attractive proposition. The company’s focus on providing high-quality, affordable home and furnishings products has resonated with consumers, and investors are expecting the company to continue its strong growth trajectory in the coming years.
Corona Remedies’ IPO, on the other hand, has generated interest among investors who are looking to capitalize on the growing demand for pharmaceutical products in India. The company’s strong portfolio of products and its focus on research and development are expected to drive growth in the coming years, making it an attractive investment opportunity.
Conclusion
In conclusion, the premium at which Wakefit and Corona Remedies’ shares are trading in the grey market is a reflection of the strong interest among investors in these IPOs. Both companies have demonstrated strong financial performance and have significant growth potential, making them attractive investment opportunities.
As the IPOs of these companies are set to open next week, investors are expecting strong listings, with prices that are higher than the upper end of the price band. While there are risks associated with investing in IPOs, the potential for strong returns makes them an attractive proposition for investors who are looking to capitalize on the growth potential of these companies.
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