The ₹1,289-crore of Bengaluru-based home and furnishings company Wakefit Innovations opens today with a price band of ₹185–195 per share. The issue will close on December 10 (Wednesday). Retail investors can apply for a minimum lot of 76 shares.
As per the reservation structure, 75 per cent of the net issue is earmarked for qualified institutional buyers (QIBs, excluding anchor portion), 15 per cent for non-institutional investors (NIIs), and 10 per cent for retail investors.
The public issue comprises a fresh issue worth ₹377.18 crore and an offer for sale (OFS) of about 4.67 crore hares, valued at around ₹912 crore. Through the OFS, promoters — Ankit Garg and Chaitanya Ramalingegowda — along with other selling shareholders — Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest SA, SAI Global India Fund I LLP, and Paramark KB Fund I — will offload shares.
Following the stake sale, the promoters’ holding will come down to around 37 per cent from the current 43.70 per cent.
Anchor book
on Friday raised ₹580 crore from anchor investors by allotting about 2.97 crore shares at ₹195 a share. The anchor book saw participation from several marquee investors, including, HDFC Life Insurance, Bajaj Life Insurance, Prudential Hong Kong, 360 One, Steadview Capital and Amundi Funds New Silk Road. Besides, domestic mutual funds such as HDFC MF, Axis MF, Mirae Asset MF, Nippon India MF, Tata MF, HSBC MF, Bandhan MF, Edelweiss MF and Mahindra Manulife MF also received shares in the anchor category.
Pre-IPO round
Last month, Wakefit raised ₹56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund as part of a pre-IPO funding round.
Use of fresh issue funds
Wakefit proposes to utilise the proceeds from the fresh issue worth ₹31 crore for setting up of 117 new COCO-Regular Stores; ₹15.4 crore towards purchase of new equipment and machinery; ₹161.4 crore for expenditure for lease and sub-lease rent and license fee payments for existing stores. The company will also use ₹108.4 crore towards marketing and advertisement expenses for enhancing the awareness and visibility of the brand and the remaining amount will be used for general corporate purposes.
Wakefit, which was incorporated in 2016, is one of the fastest home-grown players in the home and furnishings market in India among organised peers to achieve a total income of more than ₹1,000 crore, as of March 31, 2024.
It has a wide range of mattresses, furniture, and furnishings, which it sells through both its own channels (comprising the website and COCO-Stores) and external channels (including various marketplaces, such as major e-commerce platforms and multi-branded outlets).
It is a full stack vertically integrated company, enabling it to control every aspect of operations, from conceptualising, designing and engineering products to manufacturing, distributing and providing customer experience and engagement.
Wakefit operates five manufacturing facilities, of which two are situated at Bengaluru, Karnataka, two at Hosur, Tamil Nadu and one at Sonipat, Haryana.
Its facilities are equipped with imported machinery and automation technologies, such as robotic arms and roller belts, which streamline the production process and reduce waste.
On the financial front, Wakefit reported revenue from operations of ₹724 crore and profit of ₹35.5 crore for the six-month period ended September 30, 2025.
Wakefit will make its stock market debut on December 15.
SBI Securities views:
Valuation: Wakefit Innovations Ltd. is India’s leading one-stop D2C home and furnishings solutions provider which operates across the mattresses, furniture and furnishings categories. The company had initially started its business with selling mattresses and then expanded into adjacent categories of furniture and furnishings. Over the last three years, WIL has delivered a revenue CAGR of 25% while simultaneously turning EBITDA positive in FY24 and PAT positive in 1HFY26 respectively. At the upper price band of ₹195, the issue is valued at EV/Sales multiple of 4.7x based on the post-issue capital. On comparing with its listed peer, the issue appears to be expensive. Hence, we recommend investors to AVOID the issue and track the company’s performance post listing.