Wakefit Innovations Debuts Flat On Dalal Street

Shares of Wakefit Innovations listed on the National Stock Exchange at Rs 195 per share, marking a flat listing over their IPO price.

The company's stock was listed at Rs 194.1 on the BSE, which is lower than the IPO price of Rs 195.

Wakefit is a D2C (direct-to-consumer) home and sleep solutions brand. It sells mattresses, furniture and decor.

The company's IPO was a book build issue of Rs 1,288.89 crore. It comprised a fresh issue of 1.93 crore shares worth Rs 377.18 crore and an offer-for-sale (OFS) of 4.68 crore shares amounting to Rs 911.71 crore.

The price band for the IPO was set between Rs 185 and Rs 195 per share while the subscription window was open from Dec. 8 to Dec. 10, with the allotment finalised on Dec. 11. 

Axis Capital Ltd. was the book-running lead manager and MUFG Intime India Ltd. was the registrar of the issue.

Wakefit Innovations will use proceeds from the IPO to fund capital expenditure, marketing and advertising, and for general corporate purposes.

Heading into the IPO, brokerages had listed some key concerns surrounding the stock, including the company's widened net loss of Rs 35 crore in FY25. This loss came despite a 29% revenue jump during the same period.

A report from Swastika Investment, which had rated 'avoid', also criticises the valuation of the company, citing it as 'expensive'. It points to a negative Return on Net Worth (RoNW) and an EV/EBITDA multiple of nearly 108x, which significantly outstrips established peers like Sheela Foam.

Another brokerage, Capital Markets, rated Wakefit IPO as 'neutral', noting that while the company's strong brand recall and omni-channel strategy remain positives, its relatively low Ebitda margin and highly competitive nature of the organised furniture market remain a concern.