Wakefit Shares Tumble Below IPO Price on Debut Day, Market Cap Falls to ₹6,146 Cr

Wakefit Innovations’ shares slipped below their IPO price on the first day of trading, reducing some of the notional gains of the company’s founders and early investors after the mattress and furniture maker had a subdued market debut on Monday.

The stock opened at the top end of its ₹185–195 price band but fell to around ₹177 within a few hours. This decline brought Wakefit’s market capitalisation to about ₹6,146 crore and cut the paper returns of key stakeholders.

Listing Performance

The company’s IPO was priced at the upper end of the band, and the stock initially listed at par on the exchanges. However, selling pressure during the session pushed the share price down to around ₹177. This decline reduced the market value of founder stakes and investor holdings compared with the levels implied when the price band was announced.

Dealers said volatility in the consumer-discretionary segment and cautious investor appetite for new listings weighed on the stock.

Cofounder Ankit Garg, who holds 28.7%, and cofounder Chaitanya Ramalingegowda, who holds 8.06%, now have stakes valued at roughly ₹1,689 crore and ₹473 crore, respectively, at the current market price. Both founders sold shares through the offer-for-sale (OFS) portion of the IPO, with Garg earning about ₹151 crore from selling around eight million shares and Ramalingegowda realising about ₹87 crore from offloading four million shares.

Large early investors also saw their paper gains narrow from pre-listing expectations. Peak XV Partners, one of Wakefit’s largest institutional shareholders after Garg, retains a 13.71% stake and remains at a multiple of its investment. However, its notional upside fell from roughly an 11x payoff implied at the price-band stage to about an 8.6x gain at the day’s market price. Peak XV slightly trimmed its OFS participation and collected around ₹400 crore from the sale.

Deal Structure & Use of Proceeds

Wakefit’s IPO raised about ₹1,289 crore, comprising a fresh issue of equity up to ₹377.18 crore and an OFS of 46,754,405 shares valued near ₹912 crore.

The company plans to deploy proceeds from the fresh issue across store expansion, capacity additions, leases and marketing: roughly ₹31 crore is earmarked for setting up 117 new company-owned stores, ₹15.4 crore for equipment, ₹161.4 crore for lease and sub-lease rent and licence payments, and ₹108.4 crore for marketing, with the balance for general corporate purposes.

Founded in 2016, Wakefit began as a sleep-products maker, mattresses, pillows and bed frames, and has expanded into a broader home-and-furnishing portfolio that includes sofas, dining sets, wardrobes and study furniture. It competes with listed incumbents such as Sheela Foam (Sleepwell, Kurl-On) and newer D2C players including The Sleep Company and SleepyCat, in a market where offline incumbents and online challengers are all jockeying for share.