Wakefit Secures Rs 580 Crore Ahead of IPO

Wakefit, an established brand in home and sleep solutions, has successfully secured Rs 580 crore from 33 anchor investors at an upper price band of Rs 195 per share, just before its IPO scheduled for December 8.

As stated in the company’s stock exchange filing, Wakefit allocated 29,743,590 equity shares to anchor investors at Rs 195 each for this capital raise. Notably, 1.61 crore shares, which is about 54.3% of the total anchor portion, were distributed to nine domestic mutual funds across 21 schemes, garnering Rs 315 crore.

Key Investors in the Round

Prominent anchor investors include HDFC MF, Axis MF, Mahindra MF, Edelweiss MF, and Tata MF. The round also attracted significant participation from Bajaj Life Insurance, 360 ONE, Nippon India, Ashoka WhiteOak, and international investors like Steadview Capital and Amundi Funds.

Management and IPO Details

The management of the IPO is being overseen by Axis Capital, IIFL Capital, and Nomura as the primary book-running lead managers, while MUFG Intime functions as the registrar.

According to the Red Herring Prospectus (RHP), Wakefit aims to raise Rs 377.2 crore through a fresh issue of shares alongside an offer for sale (OFS) of 4.68 crore equity shares, valuing the company around Rs 6,400 crore (approximately $719 million). In the OFS, Peak XV is anticipated to cash out about Rs 397 crore, providing a 10X return on its investment. Verlinvest is poised to realise nearly Rs 199 crore, and Paramark KB Fund is expected to withdraw roughly Rs 50 crore at the upper price band.

Utilisation of IPO Proceeds

Wakefit plans to allocate the fresh IPO proceeds towards making lease payments for stores, enhancing marketing and advertising efforts, setting up new COCO stores, and acquiring equipment. Any remaining funds will be reserved for general corporate purposes.

Financial Performance

In terms of financial metrics, Wakefit reported an operating revenue of Rs 724 crore and a net profit of Rs 35.57 crore during the first half of FY26. Furthermore, for FY25, the company’s operating revenue surged nearly 30% to Rs 1,274 crore, up from Rs 986 crore in FY24, although it concluded the year with a net loss of Rs 35 crore.