Wakefit's ₹1,288 crore IPO opens next week: Should you bid?
What's the story
Wakefit Innovations has fixed the price band for its upcoming initial public offering (IPO) at ₹185-195 per share. The subscription period will be from December 8 to 10. The company aims to raise ₹1,288 crore through this IPO, which includes a fresh issue of ₹377.1 crore. The funds from the fresh issue will be used for expanding its store network and marketing efforts.
IPO specifics
IPO will have a lot size of 76 equity shares
The Wakefit Innovations IPO will have a lot size of 76 equity shares, which can be applied in multiples thereafter. The company has reserved at least 75% of the public issue for qualified institutional buyers (QIB), up to 15% for non-institutional institutional investors (NII), and up to 10% for retail investors. The basis of allotment is likely to be finalized on December 11.
Fund distribution
Wakefit Innovations's IPO structure and fund allocation
The company's IPO comprises a fresh issue of equity shares worth up to ₹377.1 crore and an offer-for-sale (OFS) of 4.67 crore shares by selling shareholders. Promoters Ankit Garg and Chaitanya Ramalingegowda, along with other stakeholders, will sell their shares in the OFS. The company plans to use ₹30.8 crore from the fresh issue proceeds for opening 117 new company-owned stores and ₹161.4 crore for rent payments related to existing stores.
Investment strategy
Wakefit Innovations's marketing and equipment acquisition plans
Wakefit also plans to invest ₹15.4 crore in acquiring new equipment and machinery, and ₹108.4 crore in marketing and advertising activities to enhance brand visibility. The remaining funds will be used for general corporate purposes. Axis Capital, IIFL Capital Services, and Nomura Financial Advisory & Securities (India) are the merchant bankers for this IPO while MUFG Intime India Pvt Ltd is the issue's registrar.
Company profile
Wakefit Innovations's growth and financial performance
Founded in 2016, Wakefit has emerged as one of the fastest-growing homegrown brands in India's home and furnishings space. The company has a revenue of over ₹1,000 crore as of March 31, 2024. It offers a wide range of mattresses, furniture, and home decor products through its own channels (website & retail stores) and third-party platforms (leading e-commerce sites & multi-brand outlets).