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Mattress and furniture maker Wakefit has set a price band of Rs 185-195 per share for its upcoming initial public offering (IPO), valuing the company at Rs 6,373 crore. The IPO is expected to generate significant paper gains for its promoters and investors, including Peak XV Partners.
Wakefit’s cofounders and promoters Ankit Garg and Chaitanya Ramalingegowda own 33.03% and 9.98% of the company, respectively, with their stakes valued at Rs 2,012 crore and Rs 608 crore.
Garg stands to collect around Rs 151 crore and Ramalingegowda about Rs 87 crore from the offer for sale (OFS) portion of the IPO. Garg, who owns around 103 million shares, is selling about eight million, while Ramalingegowda, is offloading four million of his 31 million shares.
Peak XV Partners, the Bengaluru-based company’s largest shareholder after Garg, has 22.6% stake and is sitting on 9.5-11X returns on its investment. The venture capital firm has trimmed its OFS chunk to 2 crore shares from 2.5 crore, and will pick up roughly Rs 400 crore.
Wakefit aims to raise Rs 377 crore by an issue of fresh shares. The IPO will open on December 8, and will see the existing shareholders offer 46.7 million shares for sale.
Another selling shareholder, Nikita Goel, who owns 1% of the company valued at Rs 70 crore, is sitting on a paper gain of 4,875X.
Among the others selling shares in the IPO, Verlinvest, SIG Asia VC, and Paramark are set to clock 2X returns on their investments, amounting to Rs 199 crore, Rs 8 crore, and Rs 50 crore, respectively.
According to its draft red herring prospectus (DRHP), Investcorp had planned to sell around six million shares, but has now decided not to. Elevation Capital, which owns 4.7% of the company, will also not participate in the OFS and retain its entire stake.
Founded in 2016, the Peak XV-backed company initially focussed on sleep-related products such as mattresses, pillows, and bed frames. Over time, it expanded the portfolio to include a wide range of home products, including sofas, dining sets, wardrobes, study tables, and bookshelves.
Wakefit competes with the likes of Sheela Foam, a listed firm that owns the Sleepwell and Kurl-On brands, as well as several new-age rivals such as Premji Invest-backed The Sleep Company, and Saama Capital-backed SleepyCat.
Wakefit’s cofounders and promoters Ankit Garg and Chaitanya Ramalingegowda own 33.03% and 9.98% of the company, respectively, with their stakes valued at Rs 2,012 crore and Rs 608 crore.
Garg stands to collect around Rs 151 crore and Ramalingegowda about Rs 87 crore from the offer for sale (OFS) portion of the IPO. Garg, who owns around 103 million shares, is selling about eight million, while Ramalingegowda, is offloading four million of his 31 million shares.
Peak XV Partners, the Bengaluru-based company’s largest shareholder after Garg, has 22.6% stake and is sitting on 9.5-11X returns on its investment. The venture capital firm has trimmed its OFS chunk to 2 crore shares from 2.5 crore, and will pick up roughly Rs 400 crore.
Wakefit aims to raise Rs 377 crore by an issue of fresh shares. The IPO will open on December 8, and will see the existing shareholders offer 46.7 million shares for sale.
Another selling shareholder, Nikita Goel, who owns 1% of the company valued at Rs 70 crore, is sitting on a paper gain of 4,875X.
Among the others selling shares in the IPO, Verlinvest, SIG Asia VC, and Paramark are set to clock 2X returns on their investments, amounting to Rs 199 crore, Rs 8 crore, and Rs 50 crore, respectively.
According to its draft red herring prospectus (DRHP), Investcorp had planned to sell around six million shares, but has now decided not to. Elevation Capital, which owns 4.7% of the company, will also not participate in the OFS and retain its entire stake.
Founded in 2016, the Peak XV-backed company initially focussed on sleep-related products such as mattresses, pillows, and bed frames. Over time, it expanded the portfolio to include a wide range of home products, including sofas, dining sets, wardrobes, study tables, and bookshelves.
Wakefit competes with the likes of Sheela Foam, a listed firm that owns the Sleepwell and Kurl-On brands, as well as several new-age rivals such as Premji Invest-backed The Sleep Company, and Saama Capital-backed SleepyCat.
