Wakefit IPO Opens: GMP Slides Sharply—Here’s What Investors Should Know Before Applying

The Wakefit Innovations IPO opened for public subscription on December 8 and will remain open until December 10, giving investors a chance to participate in one of India’s most recognisable home and sleep solutions brands. Shares are set to list on the BSE and NSE on December 15, with allotment expected to be finalised on December 11.

Wakefit, known for its mattresses, furniture and home décor products, is tapping the capital markets amid rising demand for organised home and lifestyle consumption in India.

Issue Structure and Price Band

The ₹1,288.89 crore IPO includes:

• Fresh issue: 1.93 crore shares worth ₹377.18 crore

• Offer for sale (OFS): 4.68 crore shares worth ₹911.71 crore

The price band has been set at ₹185–₹195 per share.

Minimum investment:

• Retail: ₹14,820 for 1 lot (76 shares)

• sNII: 14 lots (1,064 shares) – ₹2.07 lakh

• bNII: 68 lots (5,168 shares) – ₹10.07 lakh

Axis Capital is the book-running lead manager, while MUFG Intime India is the registrar.

Grey Market Premium Drops

Wakefit’s GMP has slipped to ₹16, signalling subdued listing expectations. Based on the upper price band of ₹195, the implied listing price stands around ₹211, suggesting a modest 8% potential listing gain.

The sharp fall shows cooling speculative sentiment, though analysts caution that GMP is unofficial and not always a reliable predictor of listing performance.

Financial Performance

Wakefit has recorded steady top-line growth:

• Revenue growth: 28% from FY24 to FY25

• Profit after tax: Fell 133% in the same period, highlighting volatility

• Q2 FY26 turnaround: PAT of ₹35.6 crore

• EBITDA margin: Improved to 14.25%

The company remains largely debt-free, which strengthens its long-term investment appeal.

Industry data suggests India’s home and furnishings market, valued at ₹2.8–3.0 trillion in CY2024, may nearly double by CY2030. Wakefit’s core category—mattresses—is expected to grow to ₹27,000–₹30,000 crore by 2030, driven by urbanisation, sleep wellness awareness and rising demand for branded offerings.

Business Model and Expansion Plans

Since its launch in 2016, Wakefit has built a strong D2C presence by bypassing middlemen and selling directly to consumers. It has expanded into:

• Beds

• Sofas

• Wardrobes

• Home décor

A key part of IPO proceeds will fund 117 new company-owned stores, machinery purchases, branding and general corporate needs—signalling a deeper push into offline retail to scale furniture sales.

Should You Apply?

The Wakefit IPO offers exposure to a rapidly growing consumer sector. Strengths include strong brand recall, consistent revenue growth and a large addressable market. However, investors should weigh:

• Volatile profitability

• Intensifying competition in D2C retail

• A sharply declining GMP

• Execution risks associated with large offline expansion

The real test will be whether Wakefit can convert strong revenue momentum into steady, long-term profitability post-listing.

(Disclaimer: Investment decisions should be made after consulting a qualified financial advisor.)