Highlights
Wakefit IPO Announcement: Fresh Issue and OFS Details
Wakefit, recognised for its home and sleep solutions, has put forth its Red Herring Prospectus (RHP) on November 30, 2025, in relation to its IPO. The company intends to secure Rs 377.2 crore via a new offering of shares, accompanied by an offer for sale (OFS) comprising 4.68 crore equity shares. The subscription window is set to open on December 5 and will close on December 8, 2025. Bidding for anchor investors is also scheduled to commence on December 5.
According to the RHP, this Bengaluru-based company has reduced its IPO scale from the prior Draft Red Herring Prospectus (DRHP), which initially proposed a fresh offering of Rs 468 crore and an OFS of 5.84 crore shares. The IPO is being directed by Axis Capital, IIFL Capital, and Nomura as lead managers, while MUFG Intime operates as the registrar.
OFS Breakdown and Major Stakeholders
Peak XV will be shedding the most significant portion of the OFS, contributing 2 crore shares, which represents roughly 43.6% of the total. Other contributors include Verlinvest and Paramark Ventures, selling 1 crore and 25.54 lakh shares respectively. Additional sellers comprise Redwood Trust, SAI Global, and various other investors. Co-founders Ankit Garg and Chaitanya Ramalingegowda collectively plan to divest 1.21 crore shares in the OFS.
The RHP reveals that Peak XV maintains the largest external stake at 22.47%, followed by Verlinvest and Investcorp at 9.79% and 9.29% respectively. SAI Global Investment retains 5.35%, while Elevation Capital and Paramark Fund hold 4.68% and 1.63%. Among the promoters, Ankit Garg commands the largest share at 33.03%, with Chaitanya Ramalingegowda holding 9.98%.
Utilisation of IPO Proceeds
From the proceeds of the IPO, Wakefit intends to allocate Rs 161.5 crore for leasing, sub-leasing, and licensing fees associated with its current stores. Additionally, Rs 108.4 crore will be dedicated to marketing and advertising initiatives. The firm plans to invest Rs 30.8 crore on the expansion and establishment of 117 new COCO stores, and Rs 15.4 crore will be directed towards acquiring new equipment and machinery. The remaining capital will serve general corporate purposes.
Financial Performance
On the financial front, Wakefit disclosed an operating revenue of Rs 724 crore for the first half of FY26, with a net profit amounting to Rs 35.57 crore during this timeframe. For FY25, the company experienced nearly 30% year-on-year growth in operating revenue, increasing from Rs 986 crore in FY24 to Rs 1,274 crore. However, the company did report a net loss of Rs 35 crore for that financial year.
