The much-anticipated initial public offering (IPO) of Wakefit Innovations Limited has officially opened for subscription today, Monday, December 8, 2025. As one of India’s leading direct-to-consumer (D2C) home and sleep solutions brands, Wakefit’s entry into the public market is generating significant buzz among retail and institutional investors alike. The company aims to raise approximately ₹1,288.89 crore through this mainboard issue.
Investors have a three-day window to bid for shares, with the issue closing on Wednesday, December 10, 2025. The IPO comes at a time when the Indian primary market is witnessing a flurry of activity, with multiple companies queuing up to list before the year ends. Wakefit, known for its “Orthopedic Memory Foam” mattresses and quirky marketing campaigns, is positioning itself as a comprehensive home solutions provider.
Market analysts are closely watching this issue, given the company’s recent turnaround to profitability in the first half of the fiscal year 2026. While the grey market premium (GMP) suggests a decent listing gain, mixed reviews from brokerage firms advise investors to weigh the long-term growth potential against current valuation metrics.
Key IPO Details: Price Band and Lot Size
The price band for the Wakefit IPO has been fixed at ₹185 to ₹195 per equity share. This pricing values the company at a post-listing market capitalization of approximately ₹6,373 crore at the upper end of the band. The face value of each equity share is ₹1.
For retail investors, the minimum lot size is 76 shares. This means the minimum investment required to participate in the IPO is ₹14,060 at the lower price band and ₹14,820 at the upper price band. Retail investors can bid for a maximum of 13 lots, which would require an investment of nearly ₹1.93 lakh.
The issue is structured to accommodate different categories of investors. The quota for Qualified Institutional Buyers (QIBs) is set at 75% of the net offer, reflecting the company’s confidence in institutional demand. The Non-Institutional Investors (NII) category gets 15%, while the remaining 10% is reserved for Retail Individual Investors (RIIs).
Issue Structure: Fresh Issue vs. Offer for Sale
The total issue size of ₹1,288.89 crore is a mix of fresh capital infusion and a secondary sale by existing shareholders. The fresh issue component is worth ₹377.18 crore. This money will go directly into the company’s accounts to fund its growth and operational needs.
The larger portion of the IPO is an Offer for Sale (OFS) amounting to ₹911.71 crore. In this segment, existing promoters and early investors are selling part of their stakes to cash in on their investments. The selling shareholders include co-founders Ankit Garg and Chaitanya Ramalingegowda, along with major investors like Peak XV Partners (formerly Sequoia Capital India), Verlinvest, and Redwood Trust.
Promoter Ankit Garg is offloading up to 77.29 lakh shares, while Chaitanya Ramalingegowda is selling up to 44.52 lakh shares. Despite the sell-off, the promoters will continue to hold a significant stake in the company, ensuring their continued involvement in its strategic direction.
Grey Market Premium (GMP) Trends
As of the opening day, the Grey Market Premium (GMP) for Wakefit shares is hovering around ₹36 per share. This unofficial premium suggests that the shares are trading at ₹231 in the grey market, which is approximately 18-19% higher than the upper issue price of ₹195.
While the GMP indicates a positive sentiment, it has seen some fluctuation in the days leading up to the IPO. Market experts caution that GMP is not a guaranteed indicator of listing performance and can change rapidly based on market conditions and subscription numbers.
The current premium reflects a “decent” appetite for the stock, driven by the brand’s strong recall and recent financial improvements. However, it is not signaling a “bumper” listing, which suggests that investors are pricing in the risks associated with the highly competitive furniture market.
Financial Performance: A Turnaround Story
Wakefit’s financial journey has been a topic of intense discussion. For the fiscal year ended March 31, 2025 (FY25), the company reported a revenue of ₹1,273 crore, marking a robust growth of over 25% compared to the previous year. However, the company also posted a net loss of ₹35 crore for the same period.
The narrative has shifted positively in the current fiscal year. For the six months ended September 30, 2025 (H1 FY26), Wakefit reported a revenue of ₹724 crore and, crucially, a net profit of ₹35.5 crore. This return to profitability just before the IPO is a significant confidence booster for potential investors.
The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) margin also improved to 7.1% in FY25 from negative levels in previous years. This improvement indicates better operational efficiency and cost management as the company scales its offline presence.
Objectives of the Issue
Wakefit has outlined a clear roadmap for utilizing the ₹377.18 crore raised from the fresh issue. A significant portion, approximately ₹31 crore, will be used to set up 117 new Company-Owned Company-Operated (COCO) regular stores. This expansion is part of their strategy to strengthen their omnichannel presence.
Another major chunk, around ₹161.4 crore, is allocated for lease, sub-lease, and license fee payments for existing and new outlets. This highlights the capital-intensive nature of expanding a physical retail footprint in prime locations across India.
The company also plans to spend ₹15.4 crore on purchasing new equipment and machinery to boost its manufacturing capabilities. Additionally, ₹108.4 crore is earmarked for marketing and brand-building initiatives to maintain its recall in a crowded market.
Company Background and Business Model
Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit started as an online-first mattress brand. Over the years, it has evolved into a full-stack home solutions company. Its product portfolio now includes beds, sofas, wardrobes, dining tables, and home décor items like rugs and curtains.
Wakefit operates on a vertically integrated model. It manufactures most of its products in-house across five facilities in Bengaluru, Hosur, and Sonipat. This control over manufacturing allows the company to maintain quality consistency and manage costs better than competitors who rely on outsourcing.
The company claims to be the fastest homegrown D2C brand to cross the ₹1,000 crore revenue milestone. As of September 2025, Wakefit operates 125 stores across 62 cities, complementing its strong online sales from its own website and marketplaces like Amazon and Flipkart.
Risks and Analyst Reviews
Despite the strong growth, analysts have flagged certain risks. The company operates in a highly fragmented market with stiff competition from organized players like Sheela Foam (Sleepwell) and new-age rivals like The Sleep Company. The furniture segment, in particular, faces competition from giants like IKEA and online platforms like Pepperfry.
Raw material price volatility is another concern. Materials constitute nearly 45% of the company’s expenses, and with no long-term supply contracts, margins could be squeezed if commodity prices rise. Additionally, the company’s profitability is recent and needs to be sustained over a longer period to justify the valuation.
Brokerage views are mixed. Some analysts have given a “Subscribe for Long Term” rating, citing the scalable business model and growth potential. Others have assigned a “Neutral” or “Avoid” rating, pointing to expensive valuations compared to peers and the history of losses.
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Allotment and Listing Dates
Investors applying for the Wakefit IPO should keep the following dates in mind. The subscription window closes on Wednesday, December 10, 2025. The basis of allotment is expected to be finalized on Thursday, December 11, 2025.
Refunds for unsuccessful applicants will be initiated on Friday, December 12, 2025, and shares will be credited to the demat accounts of allottees on the same day. The stock is scheduled to debut on the bourses (BSE and NSE) on Monday, December 15, 2025.
Axis Capital, IIFL Capital Services, and Nomura Financial Advisory are the book-running lead managers for the issue, while MUFG Intime India (formerly Link Intime) is the registrar.
Conclusion: Should You Invest?
The Wakefit IPO offers investors a chance to bet on India’s consumption story and the shift towards organized home retail. The company has built a strong brand and has successfully demonstrated its ability to scale revenue. The recent profit figures provide a layer of comfort regarding its financial sustainability.
However, the valuation is not cheap, and the competitive landscape is intense. Conservative investors might want to wait and watch the company’s performance for a few quarters post-listing. Aggressive investors with a higher risk appetite may consider applying for potential listing gains and long-term growth.
As always, it is advisable to consult with a financial advisor before making any investment decisions. The next few days will reveal the true market appetite for this sleep solutions giant.
Related Disclaimer: This article provides information based on the Red Herring Prospectus and market reports available as of December 8, 2025. It does not constitute financial advice. Investments in the stock market are subject to market risks.
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