Listen to this article in summarized format
Loading...
××
Subscribe to
Unlock AI Briefing and Premium Content
Subscribe NowWhat's Included
- Exclusive Stories
- Daily ePaper Access
- Smart Market Tools
- Curated Investment Ideas
- Ad-lite Experience
Subscription
Wakefit Innovation, the mattress-to-furniture brand, is set to test the public markets. Its initial public offering (IPO) opens on December 8 and runs through December 10, with a listing slated for around December 15 on both the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
Here’s a breakdown of what’s inside the offer:
The IPO
The Rs 1,288 crore IPO includes a fresh issue of shares worth Rs 377.18 crore, which is lower than the Rs 468 crore originally proposed in the draft prospectus filed on June 27, 2025. In addition, there is an offer for sale (OFS) component of 4.67 crore shares, which could raise Rs 910.65 crore at the upper end of the price band.
The price band is set at Rs 185-195 per share, or 185 to 195 times the face value of Rs 1. The IPO will value Wakefit at Rs 6,373 crore.
Use of proceeds
Wakefit plans to use the funds for:
Gains for founders and investors
Wakefit’s cofounders and promoters own substantial stake: Ankit Garg holds 33.03% of the company, valued at Rs 2,012 crore, and Chaitanya Ramalingegowda has 9.98%, valued at Rs 608 crore.
By selling roughly eight million of his 103 million shares, Garg is expected to earn around Rs 151 crore from the OFS. Ramalingegowda will collect approximately Rs 87 crore by selling four million of his 31 million shares.
Peak XV Partners, the largest shareholder after Garg, holds 22.6% stake and is expected to multiply its initial investment by 9.5-11 times. The venture capital firm has reduced its OFS component from 2.5 crore shares to 2 crore, which could generate about Rs 400 crore.
Nitika Goel, who owns 1% of Wakefit, valued at Rs 70 crore, is sitting on a paper gain of 4,875 times her investment.
Other shareholders selling in the IPO include Verlinvest, SIG Asia VC, and Paramark, who are set to roughly double their investment, amounting to Rs 199 crore, Rs 8 crore, and Rs 50 crore, respectively.
Company snapshot
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 its portfolio to include a wide range of home products, including sofas, dining sets, wardrobes, study tables, and bookshelves.
The company entered offline retail in 2022 and as of September 2025, it had 125 stores.
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.
Financials
Wakefit posted revenues of Rs 1,274 crore in FY25, up from Rs 986 crore in FY24, while its net loss widened to Rs 35 crore during the period from Rs 15 crore in FY24.
For the six months that ended on September 30, the company reported a net profit of Rs 35.5 crore on revenues of Rs 724 crore.
Wakefit derives a significant portion of its earnings from the sale of mattresses, which accounted for around 60% of its revenues in H1 FY26.
Other details
The equity allotment is likely to be finalised on December 11. Investors can apply for a minimum of 76 shares, or in multiples thereof.
Axis Capital, IIFL Capital, and Nomura are leading the issue, while MUFG Intime India will act as the registrar.
Here’s a breakdown of what’s inside the offer:
The IPO
The Rs 1,288 crore IPO includes a fresh issue of shares worth Rs 377.18 crore, which is lower than the Rs 468 crore originally proposed in the draft prospectus filed on June 27, 2025. In addition, there is an offer for sale (OFS) component of 4.67 crore shares, which could raise Rs 910.65 crore at the upper end of the price band.
The price band is set at Rs 185-195 per share, or 185 to 195 times the face value of Rs 1. The IPO will value Wakefit at Rs 6,373 crore.
Use of proceeds
Wakefit plans to use the funds for:
- Setting up 117 company-owned retail outlets: Rs 31 crore.
- Lease expenses: Rs 161 crore.
- Purchase of new equipment and machinery: Rs 15 crore.
- Marketing and advertising: Rs 108 crore.
Gains for founders and investors
Wakefit’s cofounders and promoters own substantial stake: Ankit Garg holds 33.03% of the company, valued at Rs 2,012 crore, and Chaitanya Ramalingegowda has 9.98%, valued at Rs 608 crore.
By selling roughly eight million of his 103 million shares, Garg is expected to earn around Rs 151 crore from the OFS. Ramalingegowda will collect approximately Rs 87 crore by selling four million of his 31 million shares.
Peak XV Partners, the largest shareholder after Garg, holds 22.6% stake and is expected to multiply its initial investment by 9.5-11 times. The venture capital firm has reduced its OFS component from 2.5 crore shares to 2 crore, which could generate about Rs 400 crore.
Nitika Goel, who owns 1% of Wakefit, valued at Rs 70 crore, is sitting on a paper gain of 4,875 times her investment.
Other shareholders selling in the IPO include Verlinvest, SIG Asia VC, and Paramark, who are set to roughly double their investment, amounting to Rs 199 crore, Rs 8 crore, and Rs 50 crore, respectively.
Company snapshot
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 its portfolio to include a wide range of home products, including sofas, dining sets, wardrobes, study tables, and bookshelves.
The company entered offline retail in 2022 and as of September 2025, it had 125 stores.
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.
Financials
Wakefit posted revenues of Rs 1,274 crore in FY25, up from Rs 986 crore in FY24, while its net loss widened to Rs 35 crore during the period from Rs 15 crore in FY24.
For the six months that ended on September 30, the company reported a net profit of Rs 35.5 crore on revenues of Rs 724 crore.
Wakefit derives a significant portion of its earnings from the sale of mattresses, which accounted for around 60% of its revenues in H1 FY26.
Other details
The equity allotment is likely to be finalised on December 11. Investors can apply for a minimum of 76 shares, or in multiples thereof.
Axis Capital, IIFL Capital, and Nomura are leading the issue, while MUFG Intime India will act as the registrar.
