Wakefit IPO: A Growing Brand with Mixed Financial Signals

Wakefit Innovations, the company known for mattresses and home furniture, is coming up with its IPO on December 8. The IPO size is expected to be around ₹1,289 crore. Out of this, the company will raise ₹377 crore by issuing fresh shares, and the rest will be sold by existing investors through offer-for-sale (OFS). Some well-known investors selling shares include Peak XV Partners, Verlinvest, Investcorp, and SAI Global Fund. The company has already raised money before listing by selling shares at ₹195 per share to DSP India Fund and 360 ONE Equity Opportunities Fund. The IPO will open for anchor investors on December 5 and for public investors from December 8 to December 10. Share allotment will be finalized on December 11 and listing is planned for December 15 on NSE and BSE. Wakefit plans to use the fresh IPO money to: • Open 117 new retail stores • Pay lease/rent for existing stores • Buy new machinery • Spend on advertising and branding Financials: • Revenue grew strongly from ₹986 crore to ₹1,273 crore in FY25. • However, the company is still not consistently profitable. It posted a loss of ₹35 crore in FY25, but made a profit of ₹35.5 crore in the first six months of FY26 (till Sept 2025). Why It May Be Worth Considering (Advantages): • Strong growth in revenue year after year • Popular D2C (online-first) brand with growing offline presence • Backed by well-known investors • Expanding retail network which can improve sales Risks to Keep in Mind: • Company is not consistently profitable • High competition from brands like Sleepyhead, Duroflex, IKEA and local manufacturers • Rising expenses on marketing and expansion • Consumer spending may slow if economy weakens Always review the price band, financial ratios, and valuations before applying. Consider your risk profile—especially for companies with fluctuating profits.