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, Wakefit and Corona Remedies, are set to hit the market next week. As a result, the unlisted shares of these companies have seen a significant surge in their grey market premiums, with some investors willing to pay up to 18% more than the issue price.
For those who may be unfamiliar, the grey market is an unofficial platform where investors buy and sell unlisted shares of companies that are about to go public. The prices at which these shares are traded are often seen as an indicator of the demand for the IPO and the company’s potential performance in the market.
Home and furnishings startup Wakefit has set a price band of ₹185-195 per share for its ₹1,289 crore IPO. The company’s shares were trading at a premium of up to 15% in the grey market on Wednesday, indicating a strong demand for the issue. This is not surprising, given the company’s impressive growth trajectory and its position as a leading player in the Indian home furnishings market.
Pharma firm Corona Remedies’ IPO, on the other hand, is worth ₹655.37 crore. The company’s shares were trading at a premium of up to 18% in the grey market, reflecting the high expectations from the issue. The pharmaceutical sector has been one of the best-performing sectors in the Indian stock market in recent times, and Corona Remedies’ IPO is expected to benefit from this trend.
The high grey market premiums of Wakefit and Corona Remedies’ shares suggest that investors are bullish about the prospects of these companies. Both companies have shown impressive growth in their respective sectors, and their IPOs are expected to be heavily subscribed.
Wakefit, for instance, has been growing rapidly in the Indian home furnishings market, which is expected to reach ₹1.4 lakh crore by 2025. The company has a strong online presence and has been expanding its offline footprint through partnerships with various retailers. Its financials have also been impressive, with revenue growing at a compound annual growth rate (CAGR) of 100% over the past three years.
Corona Remedies, on the other hand, has a diversified portfolio of pharmaceutical products, including antibiotics, anti-inflammatory drugs, and cardiovascular drugs. The company has a strong presence in the domestic market and is also exporting its products to various countries. Its financials have been stable, with revenue growing at a CAGR of 15% over the past three years.
The high demand for Wakefit and Corona Remedies’ IPOs is also reflected in the strong response from institutional investors. Both companies have seen significant interest from foreign institutional investors (FIIs), domestic institutional investors (DIIs), and high net worth individuals (HNIs).
While the grey market premiums are an indicator of the demand for the IPOs, they are not always a guarantee of the issue’s success. Investors should do their own research and consider various factors, including the company’s financials, industry trends, and valuations, before making an investment decision.
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 high demand for these issues reflects the strong growth prospects of these companies and the bullish sentiment in the market. However, investors should exercise caution and consider various factors before making an investment decision.
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