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 are set to hit the market next week. 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 respective IPOs. This surge in grey market premium (GMP) is a clear indication of the strong demand and positive sentiment surrounding these companies.
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. Wakefit’s IPO has generated significant interest among investors, with the company’s unique business model and strong growth prospects being major draws. The company’s financials have also been impressive, with revenue growth of over 50% in the last fiscal year.
On the other hand, pharma firm Corona Remedies’ IPO is worth ₹655.37 crore and is expected to open on December 6 and close on December 10. The company has set a price band of ₹60-65 per share for its IPO. Corona Remedies’ IPO has also generated significant interest among investors, with the company’s strong product portfolio and growing demand for its products being major positives.
The grey market premium (GMP) is the premium at which unlisted shares of a company are traded in the grey market before its IPO. A high GMP is often seen as a positive indicator of the company’s prospects and the demand for its shares. In the case of Wakefit and Corona Remedies, the GMP has jumped up to 18% ahead of their IPOs, indicating strong demand and positive sentiment among investors.
The surge in GMP is not surprising, given the strong growth prospects of both companies. Wakefit has been growing rapidly, with its revenue increasing by over 50% in the last fiscal year. The company’s unique business model, which focuses on providing affordable and high-quality home furnishings, has resonated with customers and helped the company to establish a strong brand presence.
Corona Remedies, on the other hand, has a strong product portfolio and a growing presence in the pharmaceutical industry. The company’s products are in high demand, and its financials have been impressive, with revenue growth of over 20% in the last fiscal year.
The strong demand for Wakefit and Corona Remedies’ IPOs is also reflected in the response to their pre-IPO placements. Both companies have seen strong interest from institutional investors, with Wakefit raising ₹370 crore from anchor investors ahead of its IPO. Corona Remedies has also raised ₹120 crore from anchor investors ahead of its IPO.
The upcoming IPOs of Wakefit and Corona Remedies are expected to be among the most highly anticipated IPOs of the year. The strong demand and positive sentiment surrounding these companies are expected to continue, with both IPOs expected to be oversubscribed.
In conclusion, the surge in grey market premium (GMP) of Wakefit and Corona Remedies ahead of their IPOs is a clear indication of the strong demand and positive sentiment surrounding these companies. With their strong growth prospects, unique business models, and impressive financials, both companies are expected to do well in the long term. Investors who are looking to invest in these IPOs should do their own research and consider their own risk tolerance before making a decision.
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