Wakefit IPO: Muted Debut Expected on Stock Market
Wakefit Innovations is gearing up for its stock market debut on December 15, 2023, with its IPO priced between ₹185 and ₹195 per share. This marks a significant milestone for the company, which has emerged as a key player in the home and sleep solutions sector in India. The IPO window was open from December 8 to December 10, 2023, with the allotment process now completed.
Despite generating an overall subscription of 2.52 times, market observers are predicting a muted start for Wakefit. The grey market premium (GMP) stands at ₹0 per share, indicating that the listing price may remain unchanged at ₹195, the upper limit of the IPO price band. Retail investors showed enthusiasm, as the retail portion was subscribed 3.17 times, while Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) subscribed 3.04 times and 1.05 times, respectively.
The company successfully raised ₹1,288.89 crore through this IPO, which includes a fresh issue of 1.93 crore shares worth ₹377.18 crore and an offer for sale (OFS) of 4.68 crore shares totaling ₹911.71 crore. For retail investors, the lot size is set at 76 shares, requiring a minimum investment of ₹14,820 at the upper price band.
Wakefit plans to utilize the funds raised from this IPO for various initiatives, including opening 117 new company-owned and company-operated (COCO) stores, meeting lease obligations for existing stores, purchasing equipment, enhancing marketing efforts, and addressing general corporate needs. This expansion strategy is crucial for Wakefit as it aims to solidify its position in the competitive market.
Founded in 2016, Wakefit Innovations Ltd. has established itself as a prominent Direct-to-Consumer (D2C) brand specializing in affordable home and sleep solutions. Initially gaining popularity through online sales of memory foam mattresses, the company has expanded its product range to include pillows, beds, sofas, wardrobes, study tables, and various decor items tailored to modern Indian households.
With strong digital capabilities, efficient logistics, and a commitment to customer service, Wakefit is well-positioned to cater to customers across urban and semi-urban areas. As the company prepares for its stock market debut, investors are keenly watching its performance and potential growth in the coming years.
