Wakefit IPO: Check GMP, price band, review, subscription and other details

Wakefit Innovations, the D2C home and sleep solutions company best known for its mattresses, will open its IPO amid a lively grey market sentiment. The unofficial market shows a GMP of 19% ahead of the subscription window, but analysts urge caution. The company has set a price band of Rs 185–195 per share and is raising a total of Rs 1,288.89 crore, split between a fresh issue of Rs 377.18 crore and an offer for sale of Rs 911.71 crore.

The market lot is 76 shares and the pre-IPO market capitalisation stands at about Rs 6,373.16 crore. Wakefit will list on the BSE and NSE if the offer proceeds as scheduled.

Wakefit presents a familiar D2C story: rapid top-line growth driven by online distribution, an expanding product range that now covers mattresses, furniture and home décor, and plans to scale offline via company-owned experience stores.

The company reported total income of Rs 1,305.43 crore in FY25 but remains loss-making, reporting a net loss of Rs 35.00 crore for the year. EBITDA margin in FY25 was in low single digits at 6.96% and the firm continues to show negative EPS.

Should you subscribe?

Swastika Investmart flagged a number of weaknesses for the IPO. Despite rising sales, profitability has not followed. Operating leverage remains limited while marketing and distribution costs are high. The note said the company continues to report losses, and FY25 net loss remains high despite revenue growth with an Avoid rating. Wakefit also has negative return metrics and a stretched pricing relative to profitability.

There are also structural risks that investors should weigh. Wakefit relies heavily on online channels and third-party manufacturing, which can expose it to supply or platform disruptions. Raw material price swings and the working-capital intensity of furniture sales are cited as threats to margin stability.

On the flip side, the company’s strengths include a strong brand recall in mattresses, a wide product suite, and data-driven product development that has supported repeat purchases.

Investors considering the IPO should reconcile the upbeat market buzz — evident in the 19% GMP — with some caution. Growth and brand momentum are real, but translating that into steady profits will require execution on manufacturing scale, tighter working-capital cycles and sustained operating leverage.

Applications close for bidding on December 10.

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