Wakefit Innovations files draft papers with Sebi; seeks to raise ₹ 468 cr

The proposed IPO of the Bengaluru-based company is a combination of a fresh issue of equity shares aggregating up to Rs 468.2 crore and an OFS of 5.84 crore equity shares by the selling shareholders

Home and furnishings company Wakefit Innovations Ltd has filed preliminary papers with markets regulator Sebi, seeking its approval to raise funds through an initial public offering (IPO).

The proposed IPO of the Bengaluru-based company is a combination of a fresh issue of equity shares aggregating up to Rs 468.2 crore and an offer for sale (OFS) of 5.84 crore equity shares by the selling shareholders, according to the draft red herring prospectus (DRHP) filed on Thursday. 

 

As part of the OFS, the promoters -- Ankit Garg and Chaitanya Ramalingegowda and other selling shareholders -- Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest S.A., SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund and Paramark KB Fund I will be offloading shares.

Wakefit proposes to utilise the proceeds from the fresh issue worth Rs 82 crore for setting up of 117 new COCO -- Regular Stores and one COCO -- Jumbo Store; Rs 15.4 crore towards purchase of new equipment and machinery; Rs 145 crore for expenditure for lease and sub-lease rent and license fee payments for existing stores.

Additionally, Rs 108.4 crore will be used towards marketing and advertisement expenses for enhancing the awareness and visibility of the brand and the remaining amount will be used for general corporate purposes. 

 

Also, the company may consider a Pre-IPO Placement aggregating up to Rs. 93.6 crore. If such placement is undertaken, then the fresh issue size will be reduced.

Wakefit, which was incorporated in 2016 is among the fastest homegrown players in the home and furnishings market in India.

It has a wide range of mattresses, furniture, and furnishings which it sells through both own channels and external channels (including various marketplaces, such as major e-commerce platforms and multi-branded outlets). 

 

It is a fullstack vertically integrated company, enabling it to control every aspect of operations, from conceptualizing, designing and engineering products to manufacturing, distributing and providing customer experience and engagement.

Wakefit operates five manufacturing facilities of which two are situated in Bengaluru, Karnataka, two at Hosur, Tamil Nadu, and one at Sonipat, Haryana.

Wakefit reported revenue from operations of Rs 986.3 crore in FY24.

Axis Capital, IIFL Capital Services and Nomura Financial Advisory and Securities (India) Private Ltd are the book-running lead managers to the issue. The equity shares of the company are proposed to be listed on the BSE and the NSE.