Wakefit Sets Price Band, IPO To Open On Dec 8 — Check Details

Wakefit Innovations Ltd. on Tuesday announced the price band for its upcoming initial public offering. The IPO will open for subscription on Dec. 8 and close on Dec. 10.

Price band for the IPO has been set at Rs 185 - Rs 195 per share, according to an advertisement.

The company's maiden public offering is a combination of a fresh issue of equity shares aggregating up to Rs 377.1 crore and an offer-for-sale (OFS) of 4.67 crore shares by the selling shareholders.

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 worth Rs 31 crore for setting up 117 new coco regular stores and one coco jumbo store. It will use up to Rs 161.4 crore for the expenditure on lease, sub-lease rent and license fee payment for the existing coco regular stores. It will use Rs 108.4 crore for the marketing and advertisement expenses. While Rs 15.4 crore of the proceeds will also be used for purchase of new equipment and machinery, the remaining amount will be used for general corporate purposes.

Earlier this month, Wakefit raised Rs 56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund as part of a pre-IPO funding round.

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

It is a full-stack vertically integrated company, enabling it to control every aspect of operations, from conceptualising, designing and engineering products to manufacturing, distributing and providing customer experience and engagement.

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.