IPO Rush Alert! Wakefit & Corona Remedies Skyrocket in Grey Market – Your Chance for Big Listing Gains?

Upcoming IPOs Show Strong Grey Market Traction

Two significant upcoming Initial Public Offerings (IPOs) from Wakefit Innovations and Corona Remedies are generating considerable excitement, as indicated by their rising Grey Market Premiums (GMP). This surge in grey market activity suggests robust investor interest and anticipation of strong debut performances on the stock exchanges.

Wakefit Innovations Prepares for Launch

• Wakefit Innovations, a prominent home and furnishings company, is set to launch its maiden public offer.
• The IPO aims to raise approximately ₹1,289 crore.
• The subscription period is scheduled from December 8 to December 10.
• The company has established a price band of ₹185 to ₹195 per share.
• This pricing values Wakefit Innovations at an estimated ₹6,400 crore.
• Allocation to anchor investors is planned for December 5.
• The much-awaited listing on the stock exchanges is expected on December 15.
• Currently, Wakefit shares are trading at a grey market premium of about 18 percent, with Investorgain reporting it at ₹231, hinting at a potential listing gain of around 18.46 percent.

Corona Remedies Follows Suit

• Pharmaceutical firm Corona Remedies, backed by private equity investor ChrysCapital, is also preparing for its public debut.
• Its IPO seeks to raise ₹655.37 crore.
• The issue will also open on December 8 and conclude on December 10.
• The price band for Corona Remedies IPO has been set between ₹1,008 and ₹1,062 per share.
• Similar to Wakefit, Corona Remedies is slated to list on December 15.
• The grey market premium for Corona Remedies shares stands at approximately 15 percent, reflecting positive investor sentiment.

Understanding Grey Market Premium (GMP)

• The Grey Market Premium (GMP) is an unofficial gauge used in the IPO market.
• It represents the premium at which IPO shares are trading in the grey market before they are listed on the stock exchanges.
• A rising GMP is often seen as a positive sign, indicating strong demand and potentially higher listing gains for investors.
• However, it is important to note that GMP is not an official indicator and should be considered alongside other fundamental analyses.

Importance of the Event

• These upcoming IPOs offer investors an opportunity to participate in the growth stories of Wakefit Innovations and Corona Remedies.
• The strong GMP suggests that these companies are well-received by the market, potentially leading to successful listings.
• For the companies, successful IPOs will provide capital for expansion, debt reduction, or other strategic initiatives.

Impact

• Positive Investor Sentiment: The strong GMP for both IPOs can boost overall investor confidence in the Indian primary market.
• Capital Infusion: Successful fundraising will enable Wakefit Innovations and Corona Remedies to fuel their growth plans.
• Market Liquidity: The listing of these new companies will add to the trading volumes and diversity of the Indian stock market.
• Impact Rating (0-10): 7

Difficult Terms Explained

• IPO (Initial Public Offering): The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company.
• Grey Market Premium (GMP): An unofficial indicator reflecting the demand for an IPO in the secondary market before its official listing. It's the price investors are willing to pay over the IPO price.
• Anchor Investors: Large institutional investors (like mutual funds, FIIs) who commit to buying a significant portion of an IPO before it opens to the public, providing stability and confidence to the issue.
• Price Band: The range within which a company fixes the price for its IPO shares, with the final price determined based on investor demand.
• Valuation: The process of determining the current worth of a company. For an IPO, it's often based on its projected earnings, assets, and market comparables.
• Listing Gain: The profit an investor makes on the first day of an IPO if the stock price opens higher than the issue price.
• Private Equity: Investment made by firms into private companies, often with the aim of improving their performance and selling them later for a profit.