IPO GMP: Corona Remedies Vs WakeFit – Latest Trends Suggest 25% Listing Pop For Investors

The initial public offerings (IPOs) of Wakefit Innovations Ltd. and Corona Remedies Ltd., which opened for subscription on Monday will conclude their subscription on Wednesday. Both IPOs have attracted decent investor interest, with the grey market premiums (GMP) indicating potential listing gains. Investors can expect a listing gain of around 25% for Corona Remedies IPO which has been subscribed over 20 times so far, whereas a muted listing is expected for the Wakefit Innovations IPO which has been subscribed 0.5 times so far on Wednesday.

Despite overall market volatility, the GMP trends for both IPOs have generated optimism among primary market investors ahead of their public listings.

The latest GMP for Corona Remedies IPO stood at Rs 265 per share on December 10. The GMP indicates a listing price of Rs 1,327 per share, representing a potential premium of 24.95% over the upper limit of the issue price of Rs 1,062 apiece.

Corona Remedies Ltd., a pharmaceutical company, develops, manufactures and markets products across multiple therapeutic segments. The company’s IPO, worth Rs 655.37 crore, is entirely an offer-for-sale of 62 lakh shares.

The price band for the Corona Remedies IPO has been set at Rs 1,008 to Rs 1,062 per share. The IPO comprises of a single lot size of 14 shares. Retail investors are required to apply for at least a single lot size, amounting to an investment of Rs 14,868 per application based on the upper end of the issue price.

Bigshare Services Pvt. Ltd. is the issue registrar, while JM Financial Ltd. is the book-running lead manager for the IPO.  

The latest GMP for the Wakefit IPO was Rs 2 per share on December 10. With the upper price band set at Rs 195, the estimated listing price stands at Rs 197 per share. The latest GMP indicates a listing premium of 1.03% over the upper limit of the issue price.

Wakefit Innovations Ltd. is a leading manufacturer of mattresses, furniture and home furnishings. The company’s Rs 1,288.89-crore IPO comprises of a fresh issue of 1.93 crore shares, worth Rs 377.18 crore, and an offer-for-sale (OFS) of 4.68 crore shares, worth Rs 911.71 crore. 

The price band for the IPO has set at Rs 185 to Rs 195 per share, and the lot size is 76 shares. Retail investors need to apply for at least one lot size, amounting to a minimum investment of Rs 14,820 at the upper limit of the issue price per application.

Axis Capital Ltd. is the book-running lead manager, and MUFG Intime India Pvt. Ltd. serves as the issue registrar.

Wakefit Innovations Ltd. and Corona Remedies Ltd. are expected to finalise the IPO allotment status on December 11. Refunds and transfer of shares to demat accounts will be initiated on December 12.

Shares of both companies are expected to list on the BSE and NSE on December 15.  

Note: GMP does not represent official data and is based on speculation.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult financial advisors and read the red herring prospectus thoroughly before placing bids.