Wakefit Innovations Limited has initiated its Rs 1,288.89 crore initial public offering (IPO) for public subscription, presenting an opportunity for investors to engage with a prominent direct-to-consumer (D2C) home and sleep solutions brand in India. Known for its range of mattresses, furniture, and home decor items, the company aims to capitalize on the increasing demand for organized and branded home products.
The IPO commenced on December 8 and is open for bidding until December 10, with shares set to be listed on both the BSE and the NSE tentatively on December 15. The allotment basis is anticipated to be finalized by December 11.
The structure of the IPO includes a fresh issue of 1.93 crore shares valued at Rs 377.18 crore and an offer for sale (OFS) of 4.68 crore shares worth Rs 911.71 crore, with a price band of Rs 185–195 per share.
For retail investors, the minimum investment required is Rs 14,820 for one lot of 76 shares at the upper end of the price band. Non-institutional investors have the option of a small NII (sNII) lot size of 14 lots (1,064 shares) at Rs 2.07 lakh or a big NII (bNII) category of 68 lots (5,168 shares) amounting to Rs 10.07 lakh.
Axis Capital Ltd is managing the issue as the book running lead manager, with MUFG Intime India Pvt. Ltd. serving as the registrar.
Recent market sentiment around the Wakefit IPO in the grey market has shown a decline, with the grey market premium (GMP) dropping to Rs 16 as of December 8. At the upper issue price of Rs 195, the implied listing price is now around Rs 211, indicating a potential listing gain of approximately 8%.
Despite a steady revenue growth of 28% between FY24 and FY25, Wakefit experienced a 133% decline in profit after tax during the same period, highlighting challenges in profitability within the competitive D2C landscape. The company, however, returned to profitability in Q2FY26, with improved EBITDA margins and a debt-free balance sheet.
The IPO launch aligns with the ongoing growth phase of India’s home and furnishings sector, projected to nearly double by CY2030. Wakefit’s business model focuses on direct-to-consumer sales and plans to expand its offline retail presence to drive further growth and enhance its market position.
Investors considering the Wakefit IPO should monitor how the company navigates profit stability and competition post-listing to gauge its long-term performance in the evolving market landscape.