Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The initial public offering (IPO) market is abuzz with activity, and two upcoming IPOs have caught the attention of investors. 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. This surge in grey market premium (GMP) is a positive indicator for the companies, suggesting strong demand for their shares.
Home and furnishings startup Wakefit has set a price band of ₹185-195 per share for its ₹1,289 crore IPO. The company aims to raise funds to expand its business, repay debts, and enhance its marketing efforts. With a strong brand presence and growing demand for home furnishings, Wakefit’s IPO is expected to generate significant interest among investors.
Pharma firm Corona Remedies’ IPO, on the other hand, is worth ₹655.37 crore. The company plans to utilize the funds raised to expand its manufacturing capabilities, invest in research and development, and strengthen its distribution network. The pharmaceutical industry has been performing well, driven by increasing demand for healthcare services and products.
The grey market premium is an unofficial indicator of the expected listing price of a company’s shares. A higher GMP suggests that investors are willing to pay a premium for the shares, indicating strong demand. In the case of Wakefit and Corona Remedies, the GMP has risen to 18%, which is a significant increase.
The surge in GMP can be attributed to several factors, including the strong growth prospects of the companies, the attractive valuation of the IPOs, and the overall positive sentiment in the market. The IPO market has been performing well, with several recent issues receiving strong response from investors.
Wakefit’s IPO, in particular, has generated significant interest among investors. The company has reported strong financial performance, with revenue growing at a CAGR of 50% over the past three years. The home furnishings market is also expected to grow significantly, driven by increasing demand for online furniture shopping.
Corona Remedies’ IPO, on the other hand, offers investors an opportunity to invest in the pharmaceutical industry, which has been performing well. The company has a strong product portfolio and a significant presence in the domestic market. The IPO is also attractively priced, with a price-to-earnings ratio that is lower than its peers.
The strong demand for Wakefit and Corona Remedies’ IPOs is also reflected in the subscription numbers. The IPOs are expected to be oversubscribed, with several institutional investors and high net worth individuals (HNIs) showing interest.
In conclusion, the surge in GMP of Wakefit and Corona Remedies’ shares is a positive indicator for the companies. The strong demand for their IPOs suggests that investors are confident about the growth prospects of the companies and the overall market sentiment. With the IPOs scheduled to open next week, investors are eagerly waiting to see how the issues will perform.
As the IPO market continues to evolve, it will be interesting to see how Wakefit and Corona Remedies’ IPOs perform. The companies have strong growth prospects, and the attractive valuation of the IPOs makes them an attractive investment opportunity. With the GMP rising to 18%, it will be interesting to see how the shares list on the stock exchanges.
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