Wakefit Files DRHP with SEBI to Raise ₹468 Crore via IPO

Home and sleep solutions brand Wakefit has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as it prepares for a public market debut through an initial public offering (IPO).

The IPO comprises a fresh issue of equity shares worth ₹468 crore (~$55 million) and an offer for sale (OFS) of 5.84 crore equity shares by existing investors and promoters.

Key Stakeholders Reducing Stakes

According to the DRHP, Peak XV Partners is the largest participant in the OFS, set to offload 2.5 crore shares, accounting for 48.8% of the total OFS. Other key investors participating in the share sale include:

• Verlinvest: 1 crore shares

• Investcorp Growth: 54.5 lakh shares

• Redwood Trust, SAI Global, Paramark Fund, and others

Co-founders Ankit Garg and Chaitanya Ramalingegowda will also divest a combined 1.21 crore shares.

Shareholding Breakdown (Pre-IPO)

• Ankit Garg (Promoter): 33.38%

• Chaitanya Ramalingegowda (Promoter): 10.09%

• Peak XV Partners: 22.7%

• Verlinvest: 9.89%

• Investcorp Growth: 9.39%

• SAI Global Investment: 5.35%

• Elevation Capital: 4.73%

• Paramark Fund: 1.65%

Use of Funds and Financials

The company stated that proceeds from the fresh issue will be used for:

• Setting up new retail stores

• Paying for leases and licenses

• Marketing and brand-building activities

• General corporate purposes

In the first nine months of FY25, Wakefit reported:

• Revenue: ₹971 crore

• Net loss: ₹8.8 crore

Advertisment

The company generates 54.78% of its revenue through owned channels, while the rest comes from marketplaces and multi-brand outlets (MBOs). Mattresses remain the largest revenue contributor, followed by furniture and furnishings.

Listing & Lead Managers

Wakefit plans to list its shares on both the NSE and BSE. The IPO is being managed by Axis Capital, IIFL Capital, and Nomura, who are acting as book-running lead managers.