Wakefit Innovations IPO: Issue receives tepid response from investors on Day 01, subscribed 0.16 times

Wakefit Innovations IPO in focus: The initial public offering (IPO) of home and furnishings company Wakefit Innovations, which opened for subscription today, December 08, received a muted response from investors. By the end of the day, the issue was subscribed just 0.16 times, with 57.48 lakh shares bid for against the 3.63 crore shares on offer, according to the exchange data.

The retail portion was subscribed 0.77 times, while Non-Institutional Investors (NIIs) were booked just 0.07 times, and the qualified portion has not yet opened for bidding.

Wakefit Innovations issue details

The ₹1,289 crore issue comprises a fresh issue of 1.93 crore shares aggregating to ₹377.18 crore and an offer for sale of 4.68 crore shares aggregating to ₹911.71 crore.

The price band has been fixed at ₹185– ₹195 per share, while the lot size is set at 76 shares, requiring a minimum investment of ₹14,820 for retail investors. The mainboard IPO is proposed to list on both the NSE and BSE, tentatively on Monday, December 15.

Axis Capital Ltd. is the book running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue.

In other issue details, the Wakefit Innovations IPO allotment of shares is expected to be finalized on Tuesday, December 11. The company will initiate refunds on Friday, December 12, and the shares will be credited to the demat accounts of allottees on the same day following refunds.

The proceeds from the IPO will be used to set up 117 new COCO stores, purchase new equipment and machinery, and fund marketing and advertisement expenses. Additionally, funds will be allocated for lease, sublease rent, and license fee payments for existing COCO stores, as well as for general corporate purposes.

Wakefit Innovations grey market premium

As of today, the grey market premium (GMP) for the Wakefit Innovations IPO stands at ₹36 per share, suggesting that the stock is likely to list above its issue price.

Based on this GMP and the upper price band, the estimated listing price is ₹231, reflecting an 18.5% premium over the upper issue price of ₹195 per share.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

About Wakefit Innovations

The company, which began with selling mattresses, has expanded into adjacent categories of furnishings and furniture, evolving into a complete home and furnishing solutions destination. With just over nine years of operations, it claims to be the fastest homegrown player in the Indian organized home and furnishings market to achieve a total income of more than ₹1000 crore.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.