Wakefit IPO listing on Monday; analysts advise booking profits on any debut gains

Shares of D2C home and furnishings brand Wakefit Innovations are set to make their stock market debut on Monday, December 15, after its ₹1,289-crore public issue saw moderate demand during the three-day bidding window from December 8 to 10.

The mainboard issue was subscribed 2.52 times overall. Qualified Institutional Buyers (QIBs) subscribed to their portion 3.04 times, while the Non-Institutional Investors (NIIs) category was fully subscribed. The retail segment was booked 3.17 times.

Analysts said investors may consider booking profits if the stock lists with gains.

Mahesh M Ojha of Kantilal Chhaganlal Securities said the IPO valuation had been "rerated" on metrics such as price-to-sales, which were higher than some peers. "The view remains neutral and the stock should be monitored post listing. Investors may book profits if there are any listing gains," he said.

Ojha added that compared with larger peers such as Sheela Foam, Wakefit is still at an early stage of its profitability cycle and continues to report full-year losses.

Listing gains, if any, are likely to be limited given the moderate subscription across investor categories, said Prashanth Tapse, Research Analyst at Mehta Equities.

"Since our IPO recommendation was for risk-oriented investors, we maintain that stance. Allotted investors may continue to hold the stock with a long-term perspective," Tapse said.

He added that non-allotted investors should avoid chasing the stock on debut and could wait for more attractive entry levels, as near-term price weakness cannot be ruled out.

In the grey market, Wakefit Innovations was commanding a premium of around ₹5 per share, indicating a potential listing gain of about 3%. However, grey market premiums are only directional indicators of unlisted market sentiment and can change sharply.

Ahead of the IPO launch, the company raised ₹580 crore from anchor investors. Key allocations were made to Ashoka Whiteoak, HDFC Life, Prudential Hong Kong, HDFC Mutual Fund, Axis Mutual Fund, among others.

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

The IPO comprised 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 issue size to ₹1,289 crore.

The company plans to deploy the fresh issue proceeds towards multiple objectives, including ₹30.8 crore to set up 117 new COCO regular stores, ₹15.4 crore for purchase of equipment and machinery, ₹161.4 crore towards lease, sub-lease and licence fee payments for existing stores, and ₹108.4 crore for marketing, advertising and general corporate purposes.

Founded in 2016, Wakefit is among the fastest-growing home-grown brands in the organised home and furnishings segment to cross ₹1,000 crore in annual income as of FY24. Its product portfolio includes mattresses, furniture and furnishings sold through its own website, COCO stores, external marketplaces and multi-brand outlets.

Wakefit operates as a vertically integrated player, overseeing product design, engineering, manufacturing, distribution and customer experience. It runs five manufacturing facilities, two in Bengaluru, two in Hosur and one in Sonipat, equipped with automated systems such as robotic arms and roller belts to enhance efficiency and reduce wastage.

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