Wakefit, Corona Remedies’ GMPs jump up to 18% ahead of IPOs
The initial public offering (IPO) market in India is abuzz with activity, as several companies are gearing up to list their shares on the stock exchanges. Two such companies, Wakefit and Corona Remedies, are set to launch their IPOs next week, and the grey market is already showing a significant premium for their unlisted shares. According to market sources, the grey market premium (GMP) for Wakefit and Corona Remedies’ shares has jumped up to 18% 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 IPO is expected to open on December 7 and close on December 11. The issue consists of a fresh issue of equity shares worth ₹357 crore and an offer for sale (OFS) of ₹932 crore by existing shareholders. Wakefit plans to use the proceeds from the fresh issue to repay debts, fund working capital requirements, and invest in its subsidiary, Wakefit Innovations.
On the other hand, pharma firm Corona Remedies’ IPO is worth ₹655.37 crore, with a price band of ₹60-65 per share. The issue is expected to open on December 6 and close on December 10. The company plans to use the proceeds from the IPO to fund its expansion plans, repay debts, and invest in its research and development activities.
The grey market premium is an indication of the demand for a company’s shares before its IPO. It is the premium at which the unlisted shares of a company are trading in the grey market, over and above the issue price. A high GMP indicates strong demand for the shares and a positive sentiment towards the company.
In the case of Wakefit and Corona Remedies, the GMP has jumped up to 18% ahead of their IPOs, indicating a strong demand for their shares. This is a positive sign for the companies, as it suggests that investors are bullish about their prospects and are willing to pay a premium to get their hands on the shares.
The IPO market in India has been booming in recent times, with several companies launching their issues and listing on the stock exchanges. The trend is expected to continue, with many more companies planning to launch their IPOs in the coming months.
Wakefit and Corona Remedies are two such companies that are expected to benefit from the strong demand for IPOs. Both companies have a strong track record of growth and have been expanding their operations rapidly. Wakefit, for example, has been expanding its presence in the home and furnishings market, with a strong focus on online sales. Corona Remedies, on the other hand, has been investing in its research and development activities, with a focus on developing new products and expanding its product portfolio.
The strong demand for Wakefit and Corona Remedies’ shares is also reflected in the subscription numbers for their IPOs. According to market sources, the IPOs are expected to be heavily subscribed, with many institutional and retail investors showing interest in the issues.
In conclusion, the grey market premium for Wakefit and Corona Remedies’ shares has jumped up to 18% ahead of their IPOs, indicating a strong demand for their shares. The companies’ strong track record of growth, combined with the positive sentiment towards the IPO market, is expected to result in a successful listing for both companies.
As the IPO market continues to boom, it will be interesting to see how Wakefit and Corona Remedies perform after their listing. With a strong demand for their shares and a positive sentiment towards the companies, it is likely that their shares will continue to trade at a premium in the grey market.
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