Wakefit Innovations IPO opens today: Should you subscribe to the issue or avoid it?
Wakefit Innovations is selling its shares in the price band of Rs 185-195 apiece, applied for a minimum of 76 shares and its multiples to raise Rs 1,288.89 crore between December 8-10.
- Dec 8, 2025,
- Updated Dec 8, 2025 9:43 AM IST
The initial public offering (IPO) of Wakefit Innovations shall open for bidding on Monday, December 08. The company shall be offering its shares in the range of Rs 185-195 apeice, for which investors can apply for a minimum of 76 equity shares and its multiples thereafter. The issue will close for bidding on Wednesday, December 10.
Wakefit Innovations is looking to raise a total of Rs 1,288.89 crore, which includes a fresh issue of Rs 377.18 crore and offer-for-sale of up to Rs 911.71 crore from existing shareholders and promoters. Net proceeds from the fresh issue shall be utilized towards capital expenditure, expenditure on its stores, purchase of machinery, marketing & advertisement and general corporate purposes.
Incorporated in 2016, Bengaluru-Wakefit Innovations is a Indian D2C (direct-to-consumer) home and sleep solutions company, best known for its high-quality and affordable range of mattresses, furniture, and home décor products. It gained popularity with its memory foam mattresses sold directly to customers online, eliminating middlemen and offering competitive prices.
Wakefit Innovations raised a total of Rs 580 crore from 33 anchor investors as it allocated 2,97,43,590 shares for Rs 195 apeice. Its anchor book included names like Prudential Hong Kong, Amundi Funds, Steadview Capital, Ashoka WhiteOak, HDFC Life Insurance, 360 ONE, Bajaj Life Insurance, HDFC Mutual Fund, Axis MF, Nippon Life India, Mirae Asset, Tata MF, HSBC MF, Edelweiss and others.
Wakefit Innovations reported a net profit of Rs 35.57 crore with a revenue of Rs 741.30 crore for the six months ended on September 30, 2025. However, it clocked a net loss of Rs 35 crore with a revenue of Rs 1,305.43 crore for the year 2024-25. At the current valuations, the company shall command a market capitalization of nearly 6,375 crore.
Wakefit Innovations has reserved 75 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of reservation. Retail investors will have 10 per cent of the allocation in the IPO. Last heard, Wakefit was commanding a grey market premium of Rs 36 apiece, suggesting over 18 per cent listing gains for the investors.
Axis Capital, IIFL Capital Service and Nomura Financial Advisory and Securities (India) are the book running lead manager and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE with December 15 as the date of listing. Here's what a host of brokerage firms have to say about the IPO of Wakefit Innovations:
ICICIDirect Research
Rating: Avoid
Wakefit is present in the domestic home & furnishing industry, which is largely dominated by unorganised players with 70 per cent market share, said ICICIDirect Research. "We do not expect its investment plans to expand D2C presence through new store additions and marketing investments to immediately provide a clear edge in competing with unorganised players," it said with an 'avoid' tag.
Arihant Capital Markets
Rating: Neutral
Wakefit Innovations recognized as the largest D2C home and furnishings player in India by revenue in Fiscal 24, operates in a rapidly expanding domestic market. Future growth relies on strengthening its full-stack vertically integrated model and leveraging diversification across all three major product categories: mattresses, furniture, and furnishings, said Arihant Capital.
"Strategic expansion plans are allocated toward opening 117 new COCO Regular Stores and introducing specialized COCO Jumbo Stores. The issue is valued at P/S of 5.42 times from PAT of FY25. We are recommending a 'neutral' rating for this issue," it added.
SBI Securities
Rating: Avoid
Wakefit Innovations had initially started its business with selling mattresses and then expanded into adjacent categories of furniture and furnishings. Over the last three years, WIL has delivered a revenue CAGR of 25 per cent while simultaneously turning EBITDA positive in FY24 and PAT positive in 1HFY26 respectively, said SBI Securities.
"The issue is valued at EV/Sales multiple of 4.7 times based on the post-issue capital. On comparing with its listed peer, the issue appears to be expensive. Hence, we recommend investors to 'avoid' the issue and track the company’s performance post listing," it added.
Swastika Investmart
Rating: Avoid
Wakefit continues to report losses, and FY25 net loss remains high despite revenue growth. Ebitda margin is still in low single digits, reflecting limited operating leverage and high marketing costs. Compared to established peers like Sheela Foam, Wakefit shows negative EPS, negative RoNW, and weaker financial stability, said Swastika.
"Despite losses, the valuation appears expensive when compared with profitability and return ratios. Given weak profitability, negative RoNW, and stretched valuation, we give this IPO an 'avoid' rating," it adds.
BP Equities
Rating: Subscribe for long-term
WakeFit Innovations is valued at a P/S multiple of 5.5 time based on FY25 sales. Given its expansion plans, expanding margins, scalable business model, and industry growth potential, we believe the valuation is justified, said BP Equities. "We recommend a 'subscribe' rating for this issue with a medium to long-term investment horizon."
SMIFS
Rating: Subscribe
"We recommend subscribing to the issue given Wakefit's profitability inflection, 25 per cent revenue CAGR outpacing organized peers, vertically integrated cost advantages, and sustainable competitive moats offering multifold revenue potential and value creation in India's fastest-growing home furnishings retail sector, a high-risk, high-potential opportunity for long term investors," said SMIFS.
Marwadi Financial Services
Rating: Avoid
Considering the annualised EPS for September 2025 of Rs 2.18 on a post issue basis, Wakefit is set to list at a P/E of approximately 89 times with a market cap of Rs 6,373 crore, said Marwadi Financial Services. "We assign 'avoid' rating to this IPO as the valuations are expensive and not in favor of investors."
The initial public offering (IPO) of Wakefit Innovations shall open for bidding on Monday, December 08. The company shall be offering its shares in the range of Rs 185-195 apeice, for which investors can apply for a minimum of 76 equity shares and its multiples thereafter. The issue will close for bidding on Wednesday, December 10.
Wakefit Innovations is looking to raise a total of Rs 1,288.89 crore, which includes a fresh issue of Rs 377.18 crore and offer-for-sale of up to Rs 911.71 crore from existing shareholders and promoters. Net proceeds from the fresh issue shall be utilized towards capital expenditure, expenditure on its stores, purchase of machinery, marketing & advertisement and general corporate purposes.
Incorporated in 2016, Bengaluru-Wakefit Innovations is a Indian D2C (direct-to-consumer) home and sleep solutions company, best known for its high-quality and affordable range of mattresses, furniture, and home décor products. It gained popularity with its memory foam mattresses sold directly to customers online, eliminating middlemen and offering competitive prices.
Wakefit Innovations raised a total of Rs 580 crore from 33 anchor investors as it allocated 2,97,43,590 shares for Rs 195 apeice. Its anchor book included names like Prudential Hong Kong, Amundi Funds, Steadview Capital, Ashoka WhiteOak, HDFC Life Insurance, 360 ONE, Bajaj Life Insurance, HDFC Mutual Fund, Axis MF, Nippon Life India, Mirae Asset, Tata MF, HSBC MF, Edelweiss and others.
Wakefit Innovations reported a net profit of Rs 35.57 crore with a revenue of Rs 741.30 crore for the six months ended on September 30, 2025. However, it clocked a net loss of Rs 35 crore with a revenue of Rs 1,305.43 crore for the year 2024-25. At the current valuations, the company shall command a market capitalization of nearly 6,375 crore.
Wakefit Innovations has reserved 75 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of reservation. Retail investors will have 10 per cent of the allocation in the IPO. Last heard, Wakefit was commanding a grey market premium of Rs 36 apiece, suggesting over 18 per cent listing gains for the investors.
Axis Capital, IIFL Capital Service and Nomura Financial Advisory and Securities (India) are the book running lead manager and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE with December 15 as the date of listing. Here's what a host of brokerage firms have to say about the IPO of Wakefit Innovations:
ICICIDirect Research
Rating: Avoid
Wakefit is present in the domestic home & furnishing industry, which is largely dominated by unorganised players with 70 per cent market share, said ICICIDirect Research. "We do not expect its investment plans to expand D2C presence through new store additions and marketing investments to immediately provide a clear edge in competing with unorganised players," it said with an 'avoid' tag.
Arihant Capital Markets
Rating: Neutral
Wakefit Innovations recognized as the largest D2C home and furnishings player in India by revenue in Fiscal 24, operates in a rapidly expanding domestic market. Future growth relies on strengthening its full-stack vertically integrated model and leveraging diversification across all three major product categories: mattresses, furniture, and furnishings, said Arihant Capital.
"Strategic expansion plans are allocated toward opening 117 new COCO Regular Stores and introducing specialized COCO Jumbo Stores. The issue is valued at P/S of 5.42 times from PAT of FY25. We are recommending a 'neutral' rating for this issue," it added.
SBI Securities
Rating: Avoid
Wakefit Innovations had initially started its business with selling mattresses and then expanded into adjacent categories of furniture and furnishings. Over the last three years, WIL has delivered a revenue CAGR of 25 per cent while simultaneously turning EBITDA positive in FY24 and PAT positive in 1HFY26 respectively, said SBI Securities.
"The issue is valued at EV/Sales multiple of 4.7 times based on the post-issue capital. On comparing with its listed peer, the issue appears to be expensive. Hence, we recommend investors to 'avoid' the issue and track the company’s performance post listing," it added.
Swastika Investmart
Rating: Avoid
Wakefit continues to report losses, and FY25 net loss remains high despite revenue growth. Ebitda margin is still in low single digits, reflecting limited operating leverage and high marketing costs. Compared to established peers like Sheela Foam, Wakefit shows negative EPS, negative RoNW, and weaker financial stability, said Swastika.
"Despite losses, the valuation appears expensive when compared with profitability and return ratios. Given weak profitability, negative RoNW, and stretched valuation, we give this IPO an 'avoid' rating," it adds.
BP Equities
Rating: Subscribe for long-term
WakeFit Innovations is valued at a P/S multiple of 5.5 time based on FY25 sales. Given its expansion plans, expanding margins, scalable business model, and industry growth potential, we believe the valuation is justified, said BP Equities. "We recommend a 'subscribe' rating for this issue with a medium to long-term investment horizon."
SMIFS
Rating: Subscribe
"We recommend subscribing to the issue given Wakefit's profitability inflection, 25 per cent revenue CAGR outpacing organized peers, vertically integrated cost advantages, and sustainable competitive moats offering multifold revenue potential and value creation in India's fastest-growing home furnishings retail sector, a high-risk, high-potential opportunity for long term investors," said SMIFS.
Marwadi Financial Services
Rating: Avoid
Considering the annualised EPS for September 2025 of Rs 2.18 on a post issue basis, Wakefit is set to list at a P/E of approximately 89 times with a market cap of Rs 6,373 crore, said Marwadi Financial Services. "We assign 'avoid' rating to this IPO as the valuations are expensive and not in favor of investors."