Wakefit Innovations Makes Tepid Stock Market Debut, Lists at Marginal Discount
Wakefit Innovations made a muted stock market debut, listing at a marginal discount on BSE while opening flat on NSE amid modest investor interest.
Wakefit Innovations shares debut on Dalal Street with a subdued listing performance.
Wakefit Innovations' shares had a mundane start on Dalal Street on Monday, December 15, when they got listed at a minimally lower price than their issue price. The stock started on BSE at ₹194.10, which was a bit lower than the IPO price at ₹195, thus showing a discount of 0.46 percent. On the NSE, however, the shares debuted flat at the issue price.
The listing performance was largely in line with market expectations. Ahead of the debut, Wakefit Innovations was commanding a modest grey market premium (GMP) of around ₹4 per share, indicating a potential upside of just about 2 percent. Based on the listing price, investors gained approximately ₹68.40 per lot of 76 shares.
The initial public offering (IPO) of Wakefit Innovations was available for subscription during the period from December 8 to December 10, and the share price was fixed at ₹185-195 with a minimum purchase of 76 shares. The IPO was a big hit as the company managed to get a total of ₹1,288.89 crores. The amount includes fresh issuance of shares worth ₹377.18 crores and the sale of existing shares of up to ₹911.71 crores amounting to 4.67 crores.
The problem was that the issue had an overall subscription amounting to 2.52 times, which resulted in attracting the bids up to almost ₹1,800 crores from about 2.33 lakh applications. The qualified institutional buyers (QIB) segment had a subscription of 3.04 times, whereas non-institutional investors (NIIs) had a subscription of 1.05 times. Retail investors showed relatively stronger interest, with their portion subscribed 3.17 times.
Wakefit Innovations, a company that is based in Bengaluru and works directly with consumers (D2C) in the home and sleep solutions market, was established in 2016. The firm has a diverse portfolio including mattresses, furnishings, and decor that won consumers over mainly through its online-first approach which not only removes the middleman but also makes prices quite competitive.
Brokerage opinions on the IPO were mixed. Some analysts were in favor of investing in the issue, while others were advocating for caution. Axis Capital, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) were the book-running lead managers, with MUFG Intime India as the registrar.
