Wakefit IPO opens today: ₹1,289 crore issue sees 33% retail subscription so far; should you bid?

The ₹1,289 crore initial public offering (IPO) of Wakefit Innovations, the D2C home and furnishings brand backed by Peak XV Partners, Elevation Capital and Investcorp, opened for subscription on December 8. The issue will close on December 10, 2025.

The IPO saw 7% overall subscription on Day 1 so far, with retail investors driving demand at 33%, followed by non institutional investors at 3%.

The company has fixed a price band of ₹185-195 per share for its maiden offering, implying a post-issue market cap of about ₹6,400 crore.

Retail investors can apply for a minimum of one lot consisting of 76 shares, requiring an investment of ₹14,820, with subsequent applications in multiples of 76 shares.

Wakefit Innovations IPO: Should you apply?

SBI Securities: Avoid

SBI Securities has assigned an 'Avoid' rating to the issue, advising investors to track the company's performance post listing instead. At the upper end of the price band, the IPO is priced at an EV-to-sales multiple of 4.7x on a post-issue basis, making it expensive compared to its listed peer, the brokerage said.

BP Equities: Subscribe

WakeFit Innovations is valued at a P/S multiple of 5.5x based on FY25 sales. Given the company's expansion plans, expanding margins, scalable business model, and industry growth potential, BP Equities believes the valuation is justified. Thus, it recommended a 'Subscribe' rating for this issue with a medium to long-term investment horizon.

SMIFS: Subscribe

SMIFS Ltd. has recommended 'Subscribing' to the issue, citing Wakefit's profitability inflection, its 25% revenue CAGR that is outpacing organised peers, vertically integrated cost advantages, and strong competitive moats that offer meaningful revenue upside and value creation in India’s fastest growing home furnishings retail segment. It remains a high risk, high potential opportunity for long term investors, as per the brokerage.

Wakefit Innovations IPO: GMP today

The latest grey market premium for the Wakefit Innovations IPO stands at ₹36 per share, indicating an estimated listing gain of around 18.46%. However, GMPs are only directional indicators of sentiment in the unlisted market and tend to fluctuate sharply.

Wakefit Innovations IPO: Anchor book

Ahead of the opening, the company raised ₹580 crore from anchor investors. Key allocations went to Ashoka Whiteoak, HDFC Life, Prudential Hong Kong, HDFC Mutual Fund, Axis Mutual Fund and others.

Separately, Steadview Capital, WhiteOak and Capital 2B invested ₹186 crore in a secondary transaction ahead of the IPO. Peak XV Partners, Redwood Trust and Verlinvest SA, among the selling shareholders, transferred up to 95.57 lakh shares at ₹195 apiece as part of the deal.

Wakefit also raised ₹56 crore in a pre-IPO round in November from DSP India Fund and 360 ONE Equity Opportunity Fund, issuing 28.71 lakh shares.

Wakefit IPO details

The issue comprises a fresh issue of shares worth ₹377.18 crore and an offer-for-sale of 4.67 crore shares valued at around ₹912 crore, taking the total size to ₹1,289 crore.

Promoters Ankit Garg and Chaitanya Ramalingegowda, along with selling shareholders including Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest SA, SAI Global India Fund I LLP and Paramark KB Fund I, will participate in the OFS.

The company plans to use the fresh proceeds across several areas: ₹30.8 crore for setting up 117 new COCO regular stores, ₹15.4 crore for new equipment and machinery, ₹161.4 crore for lease, sub-lease and licence fee payments for existing stores, and ₹108.4 crore for marketing, advertising and general corporate purposes.

Company overview

Founded in 2016, Wakefit is considered one of the fastest growing home-grown brands in the home and furnishings space among organised peers to surpass ₹1,000 crore in annual income as of FY24. Its product range spans mattresses, furniture and furnishings sold through its own channels, its website and COCO stores, as well as external marketplaces and multi-brand outlets.

Wakefit operates as a vertically integrated player, managing everything from product design and engineering to manufacturing, distribution and customer experience.

It runs five manufacturing facilities, two in Bengaluru, two in Hosur and one in Sonipat, equipped with automated machinery such as robotic arms and roller belts to improve efficiency and reduce waste.

On the financial front, Wakefit reported operating revenue of ₹1,273 crore in FY25. For the six months ended September 30, 2025, revenue stood at ₹724 crore with a profit of ₹35.5 crore.

Axis Capital, IIFL Capital Services and Nomura Financial Advisory and Securities (India) are the book running lead managers to the issue.

The IPO allotment is expected to be finalised on December 11, and the shares are proposed to list on both the BSE and NSE.