Wakefit Innovations IPO: From GMP and issue details to financials; Here’s what you need to know

Wakefit Innovations’  Rs 1,288.89-crore book-built IPO blends growth funding with shareholder exits. The fresh issue of  Rs 377.18 crore will aid expansion, while the  Rs 911.71-crore OFS allows early investors to partially monetise stakes. The issue reflects confidence in demand for branded, value-focused home and sleep solutions.

The IPO opens December 8–10 at a  Rs 185– Rs 195 price band and will list on BSE and NSE on December 15. A retail investor needs  Rs 14,820 for one lot, while the sNII and bNII categories demand significantly higher capital, indicating strong institutional targeting.

GMP of Wakefit Innovations IPO

As of December 8, 2025, Wakefit Innovations’ shares were trading at  Rs 231 in the grey market, reflecting an 18.46% premium over the IPO cap price of  Rs 195. This translates to a gain of  Rs 36 per share, signaling healthy investor demand and positive sentiment ahead of the official listing.

Objective of the IPO

The IPO objectives clearly show Wakefit’s aggressive offline expansion push. A major chunk is being spent on opening 117 new COCO stores and supporting rentals of existing outlets, signalling a retail-led growth strategy. Strong allocation to marketing strengthens brand visibility, while machinery investment and general corporate use support long-term scalability and operational stability.

Company Business

Wakefit Innovations has built a strong D2C brand in India by offering affordable, high-quality sleep and home solutions. Its early success with memory foam mattresses disrupted traditional pricing by cutting out intermediaries and focusing on online-first distribution.

Over the years, the company has smartly expanded beyond mattresses into furniture and furnishings, covering products like sofas, beds, wardrobes, and study tables. This wider portfolio allows it to address the complete home requirements of modern, value-conscious Indian consumers.

Wakefit’s digital-led model is now supported by a growing offline presence. With sales across 700 districts and 125 stores in 62 cities, the brand blends online reach with physical experience, strengthening trust, visibility, and last-mile customer engagement.

Promoter Holding

Ankit Garg and Chaitanya Ramalingegowda continue to retain a strong stake in Wakefit after the IPO. Promoter holding will dilute from 43.01% pre-issue to 36.83% post-issue, reflecting partial dilution for growth funding while still ensuring strategic control and long-term commitment to the company’s vision.

Financial Performance

Wakefit Innovations Ltd. has shown steady asset growth from  Rs 791.8 crore in FY23 to  Rs 1,220.3 crore by Sept 2025, reflecting aggressive capacity and store expansion. Total income also rose sharply from  Rs 820 crore in FY23 to  Rs 1,305 crore in FY25, highlighting strong revenue momentum.

Profitability, however, remains volatile. PAT swung from a heavy loss of  Rs 145.7 crore in FY23 to a smaller loss in FY25, and turned positive at  Rs 35.6 crore by Sept 2025. EBITDA improved steadily from negative in FY23 to  Rs 103.2 crore in September, signalling improving operating efficiency.

Wakefit Innovations Ltd. shows mixed financial health as of March 2025. Negative ROE (-6.58%), ROCE (-0.68%) and RoNW (-6.72%) reflect weak profitability and capital efficiency. However, the low debt-to-equity ratio of 0.53 limits financial risk. EBITDA margin at 7.13% indicates improving operational strength despite a negative PAT margin.

Lead Manager & Registrar

MUFG Intime India Pvt. Ltd., as the registrar, ensures smooth allotment, refunds, and investor servicing for the Wakefit IPO. The presence of strong lead managers, Axis Capital Ltd., IIFL Capital Services Ltd., and Nomura Financial Advisory & Securities (India) Pvt. Ltd. adds credibility, strong institutional reach, and execution strength to the public issue.

Competitive Strengths:

• India’s biggest and quickest expanding D2C platform for home and furnishing products
• A complete home solutions brand driven by continuous product innovation
• End-to-end, vertically integrated operations with strong in-house technical expertise
• Strong omnichannel presence supported by a well-planned and widespread store network
• A powerful, multi-channel marketing strategy that consistently strengthens brand recall

Risk Factor 

• Wakefit’s business heavily relies on brand trust, and any damage to its brand image could directly hurt revenue, reputation, and cash flows.
• A large share of revenue comes from mattresses, making the company vulnerable to demand shifts, supply disruptions, and rising competition.
• The company has reported losses earlier and may continue to face profitability challenges in the coming years.
• Ongoing legal and regulatory cases involving promoters and management may pose risks if any unfavourable judgments arise.
• Wakefit has reported negative operating cash flows earlier and may continue facing working capital pressures in the future.

Conclusion

Overall, Wakefit Innovations Ltd. presents a high-growth, brand-driven consumer story backed by strong revenue momentum and rapid offline expansion. While improving EBITDA and low debt are positives, profitability volatility, category dependence, and cash flow risks remain key investor concerns. The IPO may suit long-term investors with a higher risk appetite seeking exposure to India’s D2C consumption theme.

Written by Abhishek Singh

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