Wakefit IPO: Wakefit Plans To Raise Rs 468 Crore Through IPO To Expand Retail Reach

Wakefit Innovations, one of the leading domestic players in India’s home and furniture industry, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), officially beginning the process for an initial public offering (IPO).

The public issue will consist of a fresh equity issue of up to Rs 468.20 crore and an offer-for-sale (OFS) of 58.3 million shares. Promoters Ankit Garg and Chaitanya Ramalingegowda along with Nitika Goel, Peak XV Partners, Redwood Trust, Verlinvest S.A., SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund, and Paramark KB Fund I will be offloading part of their stake.

According to the DRHP, Wakefit plans to channel Rs 82 crore from the fresh issue into opening 118 new company-owned stores (117 Regular, 1 Jumbo). Another Rs 15.4 crore is earmarked for new machinery, while Rs 145 crore will go towards lease and license fees for current stores. An additional Rs 108.4 crore is allocated for brand-building through marketing and advertising campaigns. The balance will support general corporate needs.

The company has also signalled the possibility of a pre-IPO placement of up to Rs 93.60 crore, which, if executed, will reduce the size of the fresh issue accordingly.

Axis Capital, IIFL Capital Services, and Nomura Financial Advisory and Securities are managing the book for the IPO. Shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Founded in 2016, Wakefit has become one of the fastest-growing organised companies in India’s home and furnishings segment. The firm surpassed Rs 1,000 crore in total income as of March 31, 2024. It offers mattresses, furniture, and furnishings through its own website and COCO (company-owned, company-operated) stores, as well as external platforms like e-commerce sites and multi-brand outlets. The company operates on a full-stack model, handling everything from product design and manufacturing to delivery and after sales support. The company posted operating revenue of Rs 986.3 crore in FY24 and Rs 971 crore for the nine months ending December 2024.