Wakefit’s IPO Announcement with Rs 468 Crore Fresh Issue

Wakefit, a prominent brand in home and sleep solutions, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an upcoming initial public offering (IPO) on Thursday. This IPO features a fresh issue of equity shares valued at Rs 468 crore (around $55 million) along with an offer for sale (OFS) of 5.84 crore equity shares, as detailed in the DRHP.

Details of the Offer for Sale

In the offer for sale, Peak XV plans to offload approximately 2.5 crore shares, representing nearly 48.8% of the total OFS. Verlinvest and Investcorp Growth will each sell 1 crore and 54.5 lakh shares, respectively. Other investors participating in the OFS include Redwood Trust, SAI Global, and Paramark Fund, among others. Co-founders Ankit Garg and Chaitanya Ramalingegowda are together selling 1.21 crore shares as part of this offer.

Stakeholder Breakdown

The DRHP indicates that Peak XV is the major external stakeholder with a 22.7% ownership, followed by Verlinvest and Investcorp, who hold stakes of 9.89% and 9.39%, respectively. SAI Global Investment possesses 5.35%, whereas Elevation Capital and Paramark Fund have 4.73% and 1.65% ownership stakes. Among the promoters, Ankit Garg has the largest shareholding at 33.38%, followed by Chaitanya Ramalingegowda with a 10.09% stake.

Listing Plans and Management

Wakefit intends to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The IPO will be overseen by Axis Capital, IIFL Capital, and Nomura, who are serving as the book-running lead managers.

Use of Proceeds

According to the DRHP, the net funds raised from the fresh issue will be allocated toward establishing new stores, obtaining leases and licenses, marketing initiatives, and various general corporate purposes.

Financial Performance

In the first nine months of FY25, Wakefit reported revenues of Rs 971 crore alongside a net loss of Rs 8.8 crore. The company generated 54.78% of its revenue through its own channels, while the rest was sourced from marketplaces and multi-brand outlets (MBOs). Mattresses emerged as the leading revenue contributor, followed by furniture and furnishings.