Wakefit Innovations Limited Makes Weak Debut with 0.46% Decline, Lists at ₹194.10 Against Modest Subscription

Wakefit Innovations Limited, incorporated in 2016 as direct-to-consumer home and sleep solutions company offering high-quality and affordable mattresses, furniture, and home décor products including memory foam mattresses, pillows, beds, sofas, study tables, made a weak debut on BSE and NSE on December 15, 2025. After closing its IPO bidding between December 8-10, 2025, the company commenced trading with a decline of 0.46% opening at ₹194.10 and touched ₹177.25.

Wakefit Innovations Limited Listing Details

Wakefit launched its IPO at ₹195 per share with minimum investment of 76 shares costing ₹14,820. The IPO received modest response with subscription of 2.52 times - retail investors at 3.17 times, QIB at 3.04 times, NII at 1.05 times.

First-Day Trading Performance

Listing Price: Wakefit opened at ₹194.10 representing decline of 0.46% from issue price of ₹195.00, touched high of ₹194.70 (down 0.15%) and low of ₹177.25 (down 9.10%), with VWAP at ₹186.43, reflecting negative market sentiment despite modest subscription and revenue growth of 28%.

Growth Drivers and Challenges

Growth Drivers:

Market Leadership: Largest and fastest growing direct-to-consumer home and furnishing solutions destination in India, comprehensive product portfolio spanning mattresses, furniture, and furnishings with core focus on innovation, PAN India presence across 700 districts reaching urban and semi-urban areas.

Operational Capabilities: Full-stack vertically integrated operations with differentiated processes and technical capabilities, omnichannel sales presence with 125 stores across 62 cities, multi-faceted marketing approach enhancing brand image, strong logistics and customer service enabling wide reach.

Growth Momentum: Revenue increased 28% from ₹1,017.33 crore in FY24 to ₹1,305.43 crore in FY25, company turned corner only from H1-FY26 reporting profit of ₹35.57 crore in H1-FY26 versus loss of ₹35.00 crore in FY25, management confident of maintaining growth trends with surge in profits ahead.

Challenges

Persistent Losses: Loss of ₹35.00 crore in FY25 representing 133% deterioration from loss of ₹15.05 crore in FY24, cumulative losses of ₹196.41 crore over FY23-FY25 period, negative ROE of 6.58%, negative ROCE of 0.68%, negative RoNW of 6.72%, negative PAT margin of 2.75% indicating profitability challenges.

Market Reception Concerns: Modest subscription of 2.52 times with big HNI segment undersubscribed at 0.88 times, listing decline of 0.46% touching low of 9.10% down during trading, high OFS component of ₹911.71 crore versus ₹377.18 crore fresh issue limiting growth capital, significant promoter dilution from 43.01% to 36.83%.

Utilisation of IPO Proceeds

Retail Expansion: ₹30.84 crore for setting up 117 new company-owned company-operated regular stores, ₹161.47 crore for lease, sub-lease rent, and license fee payments for existing COCO regular stores expanding physical presence.

Capacity and Marketing: ₹15.41 crore for purchase of new equipment and machinery enhancing manufacturing capabilities, ₹108.40 crore for marketing and advertisement expenses toward brand awareness and visibility.

General Corporate Purposes: ₹33.07 crore allocated for general corporate purposes supporting operational needs and strategic initiatives to maintain competitive positioning in home furnishings market.

Financial Performance

Revenue: ₹1,305.43 crore for FY25, growth of 28% from ₹1,017.33 crore in FY24, reflecting expanding customer base across mattresses, furniture, and furnishings through digital channels and omnichannel presence reaching 700 districts.

Net Loss: Loss of ₹35.00 crore in FY25, deterioration of 133% from loss of ₹15.05 crore in FY24, though company reported turnaround profit of ₹35.57 crore in H1-FY26 representing significant improvement raising questions about sustainability.

Financial Metrics: Negative ROE of 6.58%, negative ROCE of 0.68%, debt-to-equity of 0.53, negative RoNW of 6.72%, negative PAT margin of 2.75%, EBITDA margin of 7.13%, net worth of ₹520.57 crore, and market capitalisation of ₹6,191.77 crore.