For investors, deciding whether the Wakefit Innovations IPO is a good investment can be quite challenging. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the Wakefit Innovations IPO. This will help you analyze the strengths, risks, and financial details of the Wakefit Innovations IPO, making your investment decision better.
About Company
Wakefit Innovations Limited, founded in 2016, is one of the largest D2C home and furnishings companies in India. They provide a wide range of products, including mattresses, furniture, and furnishings, making them a leading company in terms of offering high-quality, affordable home and sleep solutions.
Wakefit started its business as a mattress company into a one-stop destination for home and furnishing products. Moreover, Wakefit is the only D2C home and furnishings brand in India that has grown across all 3 categories: mattresses, furniture, and decor. The company sells its products through both online and offline stores, helping them reach customers in over 700 districts across 28 states and 6 union territories. In the mattress category, they have launched innovative products in the past and continue to do so to stand out in the market. Moreover, the company is one of the leading firms because its memory foam mattresses, sold directly to customers online, help keep prices low.
Strengths
- Wakefit offers a strong omnichannel presence and a network of physical stores (COCO stores).
- The company offers a large and diversified product range of mattresses, furniture, and home furnishings.
- The company follows the multi-channel marketing approach, which helps it to strengthen and enhance its brand image.
- Wakefit includes a total of 125 stores spread across 62 cities in 19 states and 2 union territories.
Weaknesses
- The majority of the company’s sales come from the Mattresses category. Meaning that if any change happens in the customer demand, supply issues, or rising competition could negatively affect the business and cash flow.
- In the past, the company has faced losses and may continue to face losses in the future.
- Wakefit relies on a third-party logistics provider to transfer its products. Any interruption in these services or higher transportation costs can badly affect the business, cash flow, and financial performance.
- The company’s PAT dropped by 133%.
- Over the last three years, the company’s return on equity has been low, at -14.4%.
Wakefit Innovations IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Canara Bank | |
| DRChoksey FinServ | |
| Emkay Global | |
| Hem Securities | |
| IDBI Capital | |
| Marwadi Shares | |
| Nirmal Bang | |
| SBICAP Securities | |
| Sharekhan | |
| SMC Global | |
| Sushil Finance | |
| Swastika Investmart | |
| Ventura Securities | |
| Geojit | |
| Reliance Securities | |
| Capital Market | |
| BP Wealth | |
| ICICIdirect | |
| Choice Broking |
Wakefit Innovations IPO Details
| IPO Open Date: | December 8, 2025 |
| IPO Close Date: | December 10, 2025 |
| Face Value: | ₹1 Per Equity Share |
| IPO Price Band: | ₹185 to ₹195 Per Share |
| Issue Size: | ₹1,288.89 Crores |
| Fresh Issue | ₹377.18 Crores |
| Offer-for-Sale | Up to 4,67,54,405 equity shares |
| Registrar | MUFG Intime India Pvt. Ltd. |
| IPO Lead Managers | Axis Capital Ltd. IIFL Capital Services Ltd. Nomura Financial Advisory & Securities (India) Pvt.Ltd. |
| Basis of Allotment | December 11, 2025 |
| IPO Listing Date: | December 15, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | 30 Jun 2025 | 31 Mar 2025 | 31 Mar 2024 |
| Total Income | ₹741.30 Crores | ₹1,305.43 Crores | ₹1,017.33 Crores |
| EBITDA | ₹103.19 Crores | ₹90.83 Crores | ₹65.85 Crores |
| EBITDA Margin | 14.25% | 7.13% | 6.68% |
| Profit after Tax (PAT) | ₹35.57 Crores | ₹-35.00 Crores | ₹-15.05 Crores |
| PAT Margin | 4.91% | (2.75)% | (1.53)% |
| Net Worth | ₹557.34 Crores | ₹520.57 Crores | ₹543.61 Crores |
| Reserves and Surplus | ₹522.34 Crores | ₹500.27 Crores | ₹523.33 Crores |
| Total Borrowings | ₹7.36 Crores |
Key Indicators
| KPI | Values |
| ROE | -6.58% |
| ROCE | -0.68% |
| Debt/Equity | 0.53 |
| Market Capitalization | ₹6,373.16 Cr. |
| RoNW | -6.72% |
| EBITDA Margin | 7.13% |
Peer Comparison With the Company
| Name of the Company | Face Value (₹) | EPS (₹) | RONW (%) | P/E Ratio | NAV(₹) |
| Wakefit Innovations | 1 | (1.15) | (6.72) | [●] | 16.96 |
| Sheela Foam Limited | 5 | 8.84 | 2.98 | 77.26 | 278.35 |
Promoters & Track Records, if any
- Ankit Garg, born on September 19, 1988, aged 37 years, is the Promoter, the Chairperson, Chief Executive Officer, and an Executive Director of the Company. He holds 103,190,136 Equity shares, representing 33.03% of the Pre-Offer shareholding in the company.
- Chaitanya Ramalingegowda, born on April 6, 1981, aged 44 years, is the Promoter and an Executive Director of the Company. He holds 31,180,908 shares, representing 9.98% of the Pre-Offer shareholding in the company.
Industry Peer Group P/E ratio
Within the Home & Lifestyle industry, the company’s P/E ratio stands at 77.26, which is both its highest and lowest value during the period, and is aligned with the industry composite P/E ratio of 77.26
Expansion
- The proceeds raised from the fresh issue will be used for setting up 117 new COCO – Regular Stores.
- A portion of the funds will be utilized towards lease, sub-lease rent, and license fee payments for the existing COCO Regular stores.
- A portion of the revenue will be used for the purchase of new equipment and machinery.
- Some funds will be utilized towards marketing and advertising expenses to enhance the visibility of the brand.
- Lastly, the remaining funds will be used for the company’s general corporate purposes.
Wakefit Innovations IPO – Should You Apply or Not?
Wakefit Innovations offers a strong D2C business model, a diversified product portfolio, an Omnichannel model, a rapid Retail Expansion of COCO stores, and growing revenues can drive future growth. However, dependence on mattresses for revenue, rising competition, and the possibility of losses are key concerns.
As of December 8, the GMP of the Wakefit Innovations IPO is ₹36, indicating a listing gain of around 17% to 19%. Short-term investors can apply for the IPO for listing gain, given the positive market sentiment and attractive GMP. Long-term investors must analyze risks like dependency on third-party logistics, dependence on a single product category, and potential losses before subscribing.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
