IPO Watch: Wakefit Innovations Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).
Wakefit, founded in 2016, has emerged as the fastest-growing indigenous brand in India’s home and furnishings sector among organised competitors, reaching a total income of over ₹1,000 crores by March 31, 2024.
The company offers an extensive array of mattresses, furniture, and home accessories, which it markets through its own platforms (including its website and COCO – Stores) as well as through external channels (like prominent e-commerce sites and multi-brand retailers).
Wakefit operates five manufacturing plants, with two located in Bengaluru, Karnataka, two in Hosur, Tamil Nadu, and one in Sonipat, Haryana. These facilities are equipped with advanced imported machinery and automation technologies, such as robotic arms and roller belts, which enhance the production workflow and minimise waste.
For the fiscal year 2024, Wakefit reported a revenue from operations of ₹986.3 crore, along with ₹971 crore for the nine-month period ending December 31, 2024.
IPO Details
As outlined in the DRHP, the upcoming IPO of the Bengaluru-based firm consists of a fresh issuance of equity shares totaling up to ₹468.2 crore, along with an offer for sale (OFS) of 5,83,99,085 equity shares (5.83 crore shares) by the current shareholders.
Wakefit intends to allocate the proceeds from the Fresh Issue towards financing capital expenditures of ₹82 crores to establish 117 new COCO – Regular Stores and one COCO – Jumbo Store; ₹15.4 crores for capital expenditures related to acquiring new equipment and machinery; ₹145 crores for costs associated with lease, sub-lease rent, and license fees for existing stores; ₹108.4 crores for marketing and advertising expenses aimed at increasing brand awareness and visibility, while the remaining funds will be directed towards general corporate purposes.
The Book Running Lead Managers for this issuance include Axis Capital Limited, IIFL Capital Services Limited, and Nomura Financial Advisory and Securities (India) Private Limited.
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