Wakefit, a home and sleep solutions brand, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Thursday, taking the first step toward launching its initial public offering (IPO).
According to the DRHP, Wakefit’s IPO will include two parts: a fresh issue of new shares worth INR 468 crore (around $55 million) and an offer for sale (OFS) of 5.84 crore existing shares.
Peak XV is planning to sell nearly 2.5 crore shares, which make up about 48.8% of the total shares being offered in the Offer for Sale (OFS). Verlinvest will sell 1 crore shares, and Investcorp Growth will sell 54.5 lakh shares.
Other companies taking part in the share sale include Redwood Trust, SAI Global, Paramark Fund, and more. The company’s co-founders, Ankit Garg and Chaitanya Ramalingegowda, will also sell a total of 1.21 crore shares together.
According to the DRHP (Draft Red Herring Prospectus), Peak XV is the biggest outside investor, owning 22.7% of the company. Verlinvest holds 9.89%, and Investcorp owns 9.39%.
SAI Global Investment has a 5.35% stake, while Elevation Capital and Paramark Fund own 4.73% and 1.65%, respectively.
Among the founders (promoters), Ankit Garg owns the largest share at 33.38%, and Chaitanya Ramalingegowda holds 10.09%.
Wakefit plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Axis Capital, IIFL Capital, and Nomura will handle the IPO. These companies are the main managers of the public offer.
According to the DRHP, the money raised from selling new shares will be used to open new stores, pay for leases and licenses, spend on marketing, and cover other general business needs.
In the first nine months of FY25, Wakefit earned a revenue of INR 971 crore but reported a net loss of INR 8.8 crore.
About 54.78% of the revenue came from Wakefit’s own sales channels. The rest came from online marketplaces and multi-brand retail stores (MBOs).
Mattresses brought in the most revenue, followed by furniture and home furnishings.
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