Wakefit IPO Day 2: Subscription at 34%; GMP Drops Sharply — Should Investors Apply or Skip?

Wakefit Innovations’ IPO entered its second day of bidding on Tuesday with a subscription of 34% so far, as retail investors continued to drive demand even as the grey market premium (GMP) declined sharply.

The IPO, open from December 8 to 10, is priced at ₹185–₹195 per share, valuing the Bengaluru-based D2C home solutions brand at around ₹6,400 crore. The public issue consists of a fresh issue of ₹377.18 crore and an offer-for-sale (OFS) of 4.67 crore shares, taking the total issue size to ₹1,289 crore.

GMP Slips to ₹5

Wakefit IPO’s GMP has fallen to ₹5, indicating an expected listing price of around ₹200 — just 2.56% above the upper band of ₹195. Analysts note a clear downtrend, with the premium previously ranging from ₹0 to ₹36 over the past nine sessions.

Subscription Status

As of 2:57 pm on Day 2, Wakefit received bids for 1.22 crore shares against 3.63 crore shares on offer.

Retail investors: 1.57x subscribed

NII category: 18% booked

QIBs: Yet to show participation

IPO Structure & Key Stakeholders

Promoters Ankit Garg and Chaitanya Ramalingegowda, along with investors including Peak XV, Verlinvest, Redwood Trust, and SAI Global, are offloading shares in the OFS.

The IPO bankers are Axis Capital, IIFL Capital Services, and Nomura, while MUFG Intime is the registrar.

Wakefit earlier raised ₹186 crore from anchor investors such as Steadview Capital, WhiteOak Capital, and Temasek-backed Capital 2B, at the upper price band.

Valuation Check

SMC Global values the IPO based on price-to-book due to past losses:

Pre-issue P/B: 10.23x–10.78x

Post-issue P/B: 6.48x–6.83x

Company Snapshot

Founded in 2016, Wakefit is one of India’s fastest-growing home and furnishings brands, crossing ₹1,000 crore in revenue by FY24. The company operates five manufacturing units across Karnataka, Tamil Nadu, and Haryana.

Strengths

Leading D2C home solutions brand

Vertically integrated manufacturing

Strong omnichannel presence

Product innovation across categories

Multi-channel marketing strategy

Key Risks

Intense competition from unorganised players

Seasonal demand dependence

Margin pressure due to Jumbo COCO stores

Expert Views

Brokerages remain positive. Kunvarji Finstock values Wakefit at 5.5x FY25 price-to-sales and recommends “Subscribe” for medium to long-term gains, citing scalable business economics and strong market opportunity.

Important Dates

Allotment: December 11

Refunds: December 12

Demat credit: December 12

Listing: December 15 on BSE & NSE