Wakefit mobilises Rs 580 cr from anchor investors ahead of IPO

New Delhi, Dec 5 (PTI) Home and furnishings company Wakefit Innovations Ltd on Friday said it has collected Rs 580 crore from anchor investors, days before its initial share-sale opening for public subscription.

The anchor book saw participation from several prominent investors, including, HDFC Life Insurance, Bajaj Life Insurance, Prudential Hong Kong, 360 One, Steadview Capital and Amundi Funds New Silk Road, according to a circular uploaded on BSE's website.

Additionally, domestic mutual funds such as HDFC MF, Axis MF, Mirae Asset MF, Nippon India MF, Tata MF, HSBC MF, Bandhan MF, Edelweiss MF and Mahindra Manulife MF too were allocated shares, it added.

As per the circular, Wakefit has allotted 29,743,590 equity shares to these anchor investors at a price of Rs 195 apiece, raising Rs 580 crore.

The Rs 1,289-crore initial public offering (IPO) will open for subscription on December 8 and conclude on December 10. The company has fixed a price band of Rs 185-195 per share for its maiden offering, valuing the Bengaluru-based firm at nearly Rs 6,400 crore.

The public issue comprises a fresh issue of equity shares worth up to Rs 377.18 crore and an offer for sale (OFS) of 4,67,54,405 shares, valued at around Rs 912 crore, taking the total issue size to Rs 1,289 crore.

As part of the OFS, promoters -- Ankit Garg and Chaitanya Ramalingegowda -- along with other selling shareholders -- Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest SA, SAI Global India Fund I LLP, and Paramark KB Fund I -- will offload shares.

Following the stake sale, the promoters' holding will come down to around 37 per cent from the current 43.70 per cent.

Wakefit proposes to utilise the proceeds from the fresh issue worth Rs 31 crore for setting up of 117 new COCO-Regular Stores; Rs 15.4 crore towards purchase of new equipment and machinery; Rs 161.4 crore for expenditure for lease and sub-lease rent and license fee payments for existing stores.

Additionally, Rs 108.4 crore will be used towards marketing and advertisement expenses for enhancing the awareness and visibility of the brand and the remaining amount will be used for general corporate purposes.

Last month, Wakefit raised Rs 56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund as part of a pre-IPO funding round.

Wakefit, which was incorporated in 2016, is one of the fastest home-grown players in the home and furnishings market in India among organised peers to achieve a total income of more than Rs 1,000 crore, as of March 31, 2024.

It has a wide range of mattresses, furniture, and furnishings, which it sells through both its own channels (comprising the website and COCO-Stores) and external channels (including various marketplaces, such as major e-commerce platforms and multi-branded outlets).

It is a full stack vertically integrated company, enabling it to control every aspect of operations, from conceptualising, designing and engineering products to manufacturing, distributing and providing customer experience and engagement.

Wakefit operates five manufacturing facilities, of which two are situated at Bengaluru, Karnataka, two at Hosur, Tamil Nadu and one at Sonipat, Haryana. Its facilities are equipped with imported machinery and automation technologies, such as robotic arms and roller belts, which streamline the production process and reduce waste.

On the financial front, Wakefit reported revenue from operations of Rs 724 crore and profit of Rs 35.5 crore for the six-month period ended September 30, 2025.

Wakefit will make its stock market debut on December 15. PTI SP MNK MNK