Wakefit Innovations vs Corona Remedies: Check Day 2 subscription & GMPs of 2 ongoing IPOs

Two mainboard IPOs- Wakefit Innovations and Corona Remedies- which kicked-off for bidding on Monday, December 08, cumulatively raising around Rs 1,945 crore, continued to attract a mixed response from the investors even on the second day of the bidding. All three issues will close for subscription on Wednesday, December 10.

Wakefit Innovations: Day 2 bidding status and GMP

According to data from BSE, the IPO of Wakefit Innovations was booked 34 per cent as of 3.20 pm on Tuesday, December 09. Investors had made bids for 1,24,43,556 equity shares against the overall net offering of 3,63,53,276 equity shares for the investors. The issue was overall booked only 16 per cent on day one.

On an individual basis, the retail portion was booked 1.61 times, while quota for non-institutional bidders was subscribed only 10 per cent. Allocation for qualified institutional bidders (QIBs) was not even off the mark as of the same time. There is no employee allocation in this IPO.

Wakefit Innovations is selling its shares in the range of Rs 185-195 apiece with a lot size of 76 equity shares. The company is looking to raise a total of Rs 1,288.89 crore via its IPO. Last heard, the company was commanding a miniscule grey market premium of Rs 2-3, suggesting a flat listing for the investors.

Wakefit operates in an industry dominated by unorganized sector which puts pricing pressure, who has significant market reach within their region. Positively for Wakefit growth is visible on back of improving housing demand, increasing discretionary spending and successful expansion of its COCO stores, said Indsec Research.

"We are cautious due to higher relative valuations versus Sheela Foams (Sleepwell and Kurl-on), dominance of unorganized players, and supply side risk pertaining to RM imports. We thus assign a 'subscribe for long-term' rating to the issue," it said.

Wakefit continues to report losses, and FY25 net loss remains high despite revenue growth. Ebitda margin is still in low single digits, reflecting limited operating leverage and high marketing costs. Compared to established peers like Sheela Foam, Wakefit shows negative EPS, negative RoNW, and weaker financial stability, said Swastika.

"Despite losses, the valuation appears expensive when compared with profitability and return ratios. Given weak profitability, negative RoNW, and stretched valuation, we give this IPO an 'avoid' rating," it adds.
 

Corona Remedies: Day 2 bidding status and GMP

The IPO of Corona Remedies was overall subscribed 6.33 times as of the given time. The issue attracted bids for 2,89,43,908 equity shares against the net offered issue size of 45,71,882 equity shares. However, the issue was overall booked 67 per cent on the first day of bidding.

The portion for retail bidders was booked 5.22 times, while the allocation for non-institutional investors saw 16.46 times bids. However, qualified institutional bidders took a back seat as the portion fetched a subscription of only 81 per cent and allocation for employees was booked 3.41 times.

Ahmedabad-based pharma player, Corona Remedies, is selling its shares for Rs 1,008-1,062 apiece in the multiples of 14 shares to raise a total of Rs 655.37 crore, which entirely an offer-for-sale (OFS) of up to 61,71,101 equity shares worth Rs 251.81 crore. Its GMP has dropped from Rs 290 to Rs 250-260 apeice, hinting at nearly 25 per cent gains for the investors.

Corona's revenue grew at 16 per cent CAGR between FY23-25, which was largely driven by high value chronic segment and robust growth in its acquired brands. Its limited exposure to regulated pricing and an expanding, scalable commercial model further enhances earnings visibility, said Nirmal Bang Securities.

"The issue is valued at 43.6 times to FY25 EPS and 35 times to Annualised Q1FY26 EPS, which looks attractive compared to industry peers in view of its strong growth outlook and resilience in sustaining margin profile. Thus, we recommend 'subscirbe' to the issue," it said.

The issue seems fully priced. Based on the comprehensive nature of the company's offerings, growing brand and client base, and the potential within the Pharmaceutical sector, the company is projected to achieve considerable growth in the long term. Investors may apply to the issue with long term investment horizon, said Sushil Finance.