Wakefit IPO Subscribed 15% on Day 1

New Delhi, Dec 8 (PTI) The initial share sale of home and furnishings company Wakefit Innovations Ltd received 15 per cent subscription on the first day of the initial public offering on Monday.

The Rs 1,289-crore initial public offering (IPO) got bids for 55,12,584 shares against 3,63,53,276 shares on offer, according to the NSE data.

Category-wise, shares meant for retail individual investors (RIIs) received 73 per cent subscription, while the quota for Non-Institutional Investors subscribed 7 per cent. The qualified institutional buyers (QIBs) did not show any participation on the first day.

Three investors, Steadview Capital, WhiteOak Capital, InfoEdge and Temasek-backed Capital 2B, invested Rs 186 crore in Wakefit Innovations Ltd through secondary market transactions.

Following this round, Wakefit on Friday collected Rs 580 crore from anchor investors.

The public issue comprises a fresh issue of equity shares worth up to Rs 377.18 crore and an offer-for-sale (OFS) of 4,67,54,405 shares, valued at around Rs 912 crore, taking the total issue size to Rs 1,289 crore.

As part of 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.

Wakefit proposes to utilise the proceeds from the fresh issue worth Rs 31 crore for setting up 117 new COCO-Regular Stores; Rs 15.4 crore towards purchase of new equipment and machinery; Rs 161.4 crore for expenditure for lease and sub-lease rent and license fee payments for existing stores.

Additionally, Rs 108.4 crore will be used 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.

Last month, Wakefit raised Rs 56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund as part of a pre-IPO funding round.

Incorporated in 2016, Wakefit is one of the fastest homegrown players in the home and furnishings market in India among organised peers to achieve a total income of more than Rs 1,000 crore as of March 31, 2024.

Wakefit operates five manufacturing facilities, of which two are situated in Bengaluru, Karnataka, two in Hosur, Tamil Nadu and one in Sonipat, Haryana.

Wakefit reported a revenue from operations of Rs 724 crore and profit of Rs 35.5 crore for the six months ending September 2025.

The company will make its stock market debut on December 15.