Wakefit Innovations Secures Rs 580 Crore from Anchor Investors Ahead of IPO Launch

Wakefit Innovations Ltd, a home and furnishings company, has secured Rs 580 crore from anchor investors ahead of its initial public offering (IPO). The IPO is set to open for public subscription on December 8 and will close on December 10. The company has set a price range of Rs 185-195 per share, valuing the firm at approximately Rs 6,400 crore.

The anchor investors include HDFC Life Insurance, Bajaj Life Insurance, Prudential Hong Kong, 360 One, Steadview Capital, and Amundi Funds New Silk Road. Additionally, domestic mutual funds like HDFC MF, Axis MF, Mirae Asset MF, Nippon India MF, Tata MF, HSBC MF, Bandhan MF, Edelweiss MF, and Mahindra Manulife MF were also allocated shares. Wakefit allotted 29,743,590 equity shares to these investors at Rs 195 each.

Details of the IPO Offering

The IPO consists of a fresh issue of equity shares worth up to Rs 377.18 crore and an offer for sale (OFS) of 4,67,54,405 shares valued at around Rs 912 crore. This brings the total issue size to Rs 1,289 crore. Promoters Ankit Garg and Chaitanya Ramalingegowda will sell shares along with other shareholders such as Nitika Goel and Peak XV Partners Investments VI.

Following the stake sale through the OFS, the promoters' holding will decrease from 43.70% to about 37%. The funds raised from the fresh issue will be used for various purposes including setting up new stores and purchasing equipment. Specifically, Rs 31 crore is earmarked for establishing 117 new COCO-Regular Stores.

Utilisation of Proceeds

Wakefit plans to allocate Rs 15.4 crore for acquiring new machinery and equipment. A further Rs 161.4 crore will cover lease and sub-lease rent expenses for existing stores. Additionally, Rs 108.4 crore is designated for marketing and advertising to boost brand visibility. The remaining funds will be used for general corporate purposes.

In a pre-IPO funding round last month, Wakefit raised Rs 56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund. Established in 2016, Wakefit is among the fastest-growing home-grown players in India's organised home and furnishings market. By March 31, 2024, it achieved a total income exceeding Rs 1,000 crore.

Company Operations and Facilities

Wakefit offers a wide array of products including mattresses and furniture through its website and COCO-Stores as well as external channels like e-commerce platforms. As a vertically integrated company, it manages all operations from product design to customer engagement. It operates five manufacturing facilities located in Bengaluru, Hosur, and Sonipat.

The facilities are equipped with advanced machinery such as robotic arms and roller belts to streamline production and minimise waste. Financially, Wakefit reported revenues of Rs 724 crore with a profit of Rs 35.5 crore for the six months ending September 30, 2025.

Wakefit's stock market debut is scheduled for December 15.

With inputs from PTI