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 bourses. 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 latest data, the grey market premium (GMP) for Wakefit and Corona Remedies’ shares has jumped up to 18%, indicating a strong demand for these stocks.
Home and furnishings startup Wakefit has set a price band of ₹185-195 per share for its ₹1,289 crore IPO. The issue is expected to open on December 7 and close on December 9. The company plans to use the proceeds from the IPO to expand its business, improve its manufacturing capabilities, and strengthen its distribution network. Wakefit has been growing rapidly in recent years, with its revenue increasing from ₹143.6 crore in FY20 to ₹432.6 crore in FY22.
Pharma firm Corona Remedies’ IPO, on the other hand, is worth ₹655.37 crore. The company has set a price band of ₹60-65 per share for its issue, which is also expected to open on December 7 and close on December 9. Corona Remedies plans to use the proceeds from the IPO to repay its debts, fund its working capital requirements, and invest in its research and development activities. The company has a strong presence in the pharmaceutical industry, with a portfolio of over 100 products across various therapeutic segments.
The grey market premium (GMP) is the difference between the market price of a share and its issue price. It is an indicator of the demand for a particular stock in the market. A high GMP indicates that the market is expecting the stock to perform well after listing, and investors are willing to pay a premium to get their hands on the shares.
In the case of Wakefit and Corona Remedies, the GMP has jumped up to 18%, which is a significant premium. This suggests that investors are bullish about the prospects of these companies, and are expecting their shares to perform well after listing. The strong demand for these stocks is also reflected in the fact that the IPOs are expected to be heavily subscribed, with many investors applying for multiple lots of shares.
The IPO market in India has been on a roll in recent years, with many companies raising funds through this route. The success of these IPOs has encouraged many other companies to come to the market, and the pipeline of upcoming IPOs is quite strong. However, the market is also facing some challenges, with interest rates rising and the global economic outlook uncertain.
Despite these challenges, the Indian stock market has been performing well, with the benchmark indices rising to new highs in recent months. The strong performance of the market has encouraged many investors to invest in IPOs, and the demand for new issues has been high.
In conclusion, the grey market premium for Wakefit and Corona Remedies’ shares has jumped up to 18%, indicating a strong demand for these stocks. The IPOs of these companies are expected to be heavily subscribed, and the shares are likely to perform well after listing. The success of these IPOs will depend on various factors, including the performance of the companies, the market conditions, and the overall economic outlook.
As the IPO market in India continues to evolve, it will be interesting to see how these companies perform after listing. The strong demand for their shares is a positive sign, and it will be worth watching how they utilize the funds raised from the IPOs to grow their businesses.
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