Wakefit IPO Launches Dec 8: Check Latest ₹36 GMP and Estimated 18% Listing Gain
Wakefit IPO is opening on December 8 with a grey market premium of ₹36 per share. The direct to consumer mattress and furniture brand has set an issue size of ₹1,288 crore with a price band of ₹185 to ₹195 per share.
Investors are showing strong interest as anchor investors have already pumped in ₹580 crore on December 5. The company has turned profitable in the first half of FY26 after reporting losses in previous years.
The Bengaluru based startup founded in 2016 has grown from a mattress specialist to a full stack home furnishing player with over 3,000 products. The subscription window will remain open till December 10 and listing is expected on December 15 on both BSE and NSE.
With a minimum investment of ₹14,820 for retail investors the IPO is getting attention from both short term traders and long term investors. The grey market signals are pointing towards an 18 percent listing gain but actual returns will depend on subscription levels and market conditions on listing day.
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The company started as an online mattress brand and now operates in 700 plus districts across India. It runs 125 company owned stores in 62 cities and generates 70 percent of sales through its website and app. Revenue jumped to ₹1,273 crore in FY25 from lower levels in previous years showing strong growth momentum.
Wakefit offers sleep solutions like memory foam mattresses with Regul8 temperature regulating technology and Track8 sleep trackers. The furniture range includes beds, sofas and wardrobes while the decor section completes the home furnishing portfolio. This vertical integration from design to delivery gives the company better margins compared to traditional retailers.
The IPO consists of fresh issue worth ₹377 crore and offer for sale of ₹911 crore. Fresh funds will be used to open 117 new company owned stores, buy equipment, pay lease fees and boost marketing activities. The offer for sale allows early investors like Peak XV Partners to partially exit their investments.
Grey market premium or GMP reflects unofficial trading of IPO shares before listing. The current ₹36 premium means traders are willing to pay ₹231 per share against the upper price band of ₹195. This premium started at zero on December 2 and peaked at ₹36 between December 3 to 6.
The kostak rate which is the price for selling applications before allotment ranges from ₹80 to ₹100 per lot. Subject to sauda which means selling after allotment but before listing is quoted at ₹1,200 to ₹1,500 per lot. These rates indicate positive sentiment among grey market operators.
However grey market premium is not a guarantee of listing gains. It is based on informal trading and can change rapidly based on market conditions. Investors should consider fundamentals along with GMP while making investment decisions.
The anchor round on December 5 saw participation from 33 institutional investors who committed ₹580 crore at the upper price band. This represents 45 percent of the total issue size showing strong institutional demand. Mutual funds took 54 percent of the anchor allocation with names like HDFC Mutual Fund, Axis Mutual Fund and Mirae Asset Mutual Fund participating.
Insurance companies like HDFC Life and Bajaj Allianz also invested in the anchor round. Foreign institutional investors including Goldman Sachs, Morgan Stanley, HSBC, Amundi and Steadview Capital showed interest. Abu Dhabi Investment Authority also participated indicating confidence from sovereign wealth funds.
Anchor allocation is important because it sets the tone for retail and high net worth individual subscriptions. Strong anchor demand usually leads to higher subscription numbers when the issue opens for public.
| IPO Parameter | Details |
|---|---|
| Issue Size | ₹1,288.89 crore |
| Price Band | ₹185-₹195 per share |
| Lot Size | 76 shares |
| Minimum Investment | ₹14,820 |
| Grey Market Premium | ₹36 per share |
| Estimated Listing Gain | 18.46% |
| Listing Date | December 15, 2025 |
Wakefit reported revenue of ₹724 crore in Q2 FY26 ending September 2025 with net profit of ₹35.6 crore. This marks the first profitable half year for the company after losses of ₹15 crore in FY24 and ₹145 crore in FY23. The turnaround shows improving operational efficiency and better unit economics.
At the upper price band of ₹195 the company is valued at approximately ₹6,400 crore. The price to earnings ratio works out to around 90 times based on annualized FY26 profit. This valuation is lower than peer Sheela Foam which trades at 200 times earnings but higher than traditional furniture retailers.
The direct to consumer business model allows better margins as the company sells directly without intermediaries. Operating in the home furnishing sector which is growing at 12 percent annually also provides tailwind for future growth.
The IPO subscription opens on December 8 and closes on December 10. Retail individual investors can apply for up to ₹2 lakh while high net worth individuals can bid between ₹2 lakh to ₹5 lakh. Qualified institutional buyers get 50 percent quota and other investors get 25 percent allocation.
Allotment will be finalized on December 11 through a computerized lottery system. Successful applicants will receive shares in their demat accounts on December 12 while refunds for unsuccessful applications will be processed the same day. The registrar for the IPO is MUFG Intime India Private Limited.
Investors can check allotment status on the registrar website by entering PAN number or application number. The shares will start trading on December 15 on both Bombay Stock Exchange and National Stock Exchange.
The company faces risks like raw material price volatility and lack of long term supplier contracts. Competition in the direct to consumer space is also increasing with new players entering the market. The high offer for sale component means existing investors are looking to exit partially which could impact post listing performance.
On the positive side the company has established brand presence in urban markets and strong omnichannel distribution network. The focus on innovation with products like temperature regulating mattresses and sleep trackers differentiates it from competitors. First time profitability also removes concerns about cash burn.
Social media sentiment shows 70 percent positive outlook with users appreciating the anchor investor quality and stable grey market premium. However 10 percent users are cautious about the valuation and recent profitability after years of losses. Short term traders are looking at 18 percent listing gains while long term investors are evaluating if profits can scale to ₹100 crore plus in FY26.
Wakefit IPO presents an opportunity to invest in India’s growing direct to consumer home furnishing sector.
The ₹36 grey market premium and strong anchor participation indicate positive market sentiment. However investors should evaluate the premium valuation and execution risks before applying. The subscription window from December 8 to 10 will reveal the actual demand from retail and institutional investors.
Tags: Wakefit IPO, IPO GMP, Wakefit Innovations, Grey Market Premium, Mainboard IPO, D2C Stocks, Home Furnishing IPO
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