Wakefit IPO Starts at Rs 195, No Listing Premium for Shareholders

Wakefit Solutions took its first step in the stock market on Monday, sharing at Rs 195, which is the same as the IPO price. Investors who got shares during the IPO did not get any immediate profits on the first day of the listing.

The listing was pretty much what was expected and anticipated in the pre-market. Grey market trends had indicated a subdued opening with the Wakefit IPO trading at a Rs 7 premium before the listing day.

The IPO measured up to the standard of the medium level of investor interest, exhibiting a general subscription of 2.52 times. The participation of retail investors was the strongest, where the demand was more than the quota allotted by 3.17 times. Also, the QIBs showed keen interest by subscribing to 3.04 times the allocated shares for them. On the other hand, the Non-Institutional Investors (NIIs) showed interest as they subscribed to just 1.05 times the allotted shares.

Through the IPO, Wakefit Solutions raised Rs 1,288.89 crore. The amount raised consisted of Rs 377.18 crore from a new issue of 1.93 crore shares and the remaining Rs 911.71 crore was from the sale of 4.68 crore shares.

The IPO came with a lot size of 76 shares, thereby a minimum retail investment of Rs 14,820 was required at the upper price band. The subscription window was open from December 8 to December 10 with the price ranging between Rs 185 and Rs 195 per share.

Proceeds from fresh issue are going to expansion and operational needs. Wakefit is going to open 117 COCO- Regular stores, finance the existing outlets' lease and rental obligations, purchase equipment and machinery, and improve marketing and advertising activities. Corporates would also get a small share of the funds for general corporate purposes.

Prior to the initial public offering (IPO), the firm received Rs 580 crores from anchor investors, which were mainly top domestic and international funds. This support gave a further boost to the confidence in the issue, while at the same time the secondary markets were showing a somewhat bearish attitude.

The new listing is taking place in a market that is mixed in nature, and it is also the case that the initial gains of several companies that have just been listed are not very impressive. According to analysts, a flat opening might be the case that investors are cautious, even though the subscription numbers are strong and institutional backing is present.