Wakefit to raise ₹377cr in IPO opening December 8
What's the story
Wakefit Innovations, a Bengaluru-based home and furnishings company, plans to raise ₹377 crore through a fresh issue of shares in its upcoming initial public offering (IPO). The IPO will open on December 8 and close on December 10. Anchor investors will get their allocation on December 5, as per the red herring prospectus (RHP).
Offering details
A mix of fresh issue and offer-for-sale
Wakefit's IPO will be a mix of 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. The promoters, Ankit Garg and Chaitanya Ramalingegowda, along with other selling shareholders such as Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest S.A., SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund, Paramark KB Fund I will offload their shares through this OFS.
Fund utilization
Wakefit's plans for IPO proceeds
Wakefit intends to use ₹31 crore from the fresh issue for setting up 117 new COCO Regular Stores. It also plans to spend ₹15.4 crore on new equipment and machinery, and ₹161.4 crore on lease payments for existing stores. The company has also allocated ₹108.4 crore for marketing expenses to boost brand awareness and visibility, with the remaining amount going toward general corporate purposes.
Funding round
Pre-IPO funding and market position
Earlier this month, Wakefit raised ₹56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund in a pre-IPO funding round. The company, which was incorporated in 2016, is one of the fastest homegrown players in India's home and furnishings market among organized peers. As of March 31, 2024, it had achieved a total income of over ₹1,000 crore.
Product diversity
Product range and manufacturing facilities
Wakefit offers a wide range of mattresses, furniture, and furnishings through its own channels (website and COCO Stores) as well as external ones (marketplaces like Amazon and Flipkart). The company is a full-stack vertically integrated firm that manages everything from conceptualizing products to manufacturing them. It has five manufacturing facilities, two each in Bengaluru and Hosur, Tamil Nadu, and one in Sonipat, Haryana.