Wakefit Innovations share disappoints on market debut; shares list at marginal discount

Shares of Wakefit Innovations made a muted Dalal Street debut on Monday, December 15 as D2C sleep solutions player kicked-off its maiden trading session at Rs 194.10 on BSE, a miniscule discount of 46 per cent over its issue price of Rs 195. However, the stock was settled at the issue price itself on NSE.

The listing of Wakefit Innovations has been on the expected lines. Ahead of its debut, shares of Wakefit Innovations were commanding a grey market premium (GMP) of Rs 4 apiece, suggesting a listing pop of only 2 per cent for the investors. As of the listing price of Wakefit Innovations, investors made a profit of Rs 68.4 on each lot of 76 equity shares.

The IPO of Wakefit Innovations was open for bidding between December 08 and December 10. It had offered its shares in the price band of Rs 185-195 per share with a lot size of 76 shares. The company raised a total of Rs 1,288.89 crore via IPO, which included a fresh shares sale of Rs 377.18 crore and offer-for-sale (OFS) up to 4,67,54,405 shares worth 911.71 crore.

The issue was overall subscribed a total of only 2.52 times, attracting bids nearly Rs 1,800 crore through 2.33 lakh applications. The portion for qualified-institutional bidders (QIBs) was subscribed 3.04 times, while the non-institutional investors (NIIs) quota was booked 1.05 times. The allocation for retail investors was subscribed 3.17 times during the three-day bidding process.

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.

Brokerage firms were mixed on the issue, with some suggesting to subscribe to it, while others givin it a clear avoid. Axis Capital, IIFL Capital Service and Nomura Financial Advisory and Securities (India) were the book running lead managers and MUFG Intime India served as the registrar of the issue.