Wakefit Innovations Files Draft Papers For IPO With Rs 468-Crore Fresh Issue

Wakefit Innovations Ltd. on Thursday filed its preliminary papers with the Securities and Exchange Board of India, to raise funds via an initial public offering. The public offer will include mix of fresh issues of shares worth Rs 468.22 crore and an offer-for-sale of up to 5.8 crore equity shares.

The equity shares are proposed to be listed on the National Stock Exchange of India and BSE Ltd. The company, in consultation with the BRLMS, may consider an issue of equity shares aggregating up to Rs 93.64 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.

Ankit Garg and Chaitanya Ramalingegowda are the promoters of the company offloading shares. The other shareholders that will sell shares as part of the OFS are Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest S.A., Sai Global India Fund I, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund and Paramark KB Fund I.

Axis Capital Ltd., IIFL Capital Ltd. and Nomura Financial Advisory and Securities (India) Pvt. are the book-running lead managers for the issue and MUFG Intime India Pvt. will be the registrar of the issue.

The company plans to use the proceeds for setting up 117 new coco regular stores and one coco jumbo store. It will use up to Rs 145 crore for the expenditure on lease, sub-lease rent and license fee payment for the existing coco regular stores. It will use Rs 108 crore for the marketing and advertisment expenses. While some amount of the proceeds will also be used for capital expenditure that will be incurred by the company for purchase of new equipment and machinery, the remaining amount will be used for general corporate purposes.

Wakefit is a direct-to-customer home and furnishing company. The company offers a wide range of products, including mattresses, furniture, and furnishings.

It had a total income of Rs 1,000 crore as of March 31, 2024, it said in its DRHP. Revenue from operations have grown at a CAGR of 24.87% from financial year 2022 to financial year 2024. In financial year 2024 the mattresses business reported a revenue from sale of Rs 567.52 crore, while furniture and furnishings were at Rs 301.22 crore and Rs 117.62 crore, respectively.