Wakefit Innovations, a Bengaluru-based direct-to-consumer (D2C) home and furnishings company, is gearing up to launch its Initial Public Offering (IPO) on December 8, 2023. The much-anticipated IPO aims to raise approximately Rs 1,300 crore, marking a significant event for investors interested in the home solutions sector.

The Rs 1,300 crore offer is structured through a combination of fresh equity issuance and an Offer for Sale (OFS) by existing shareholders. Specifically, Wakefit plans to raise around Rs 377 crore through fresh equity shares, while existing investors—including promoters and private equity backers like Peak XV Partners, Elevation Capital, and Investcorp—intend to sell close to 4.67 crore shares via the OFS route. This blend allows the company to raise funds for growth while providing liquidity to early investors.

Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit initially focused on sleep and home comfort products. Over the years, it has expanded its product portfolio to include a wider range of home furnishings and has become one of the prominent D2C players in India’s home improvement space. Prior to the IPO, Wakefit also conducted a pre-IPO round in November 2023, garnering Rs 56 crore by issuing shares to institutional investors like DSP India Fund and 360 ONE Equity Opportunities Fund at a price of Rs 195 per share.

The IPO price band has been set between Rs 185 and Rs 195 per equity share, reflecting the company’s valuation ambitions. Industry watchers estimate that post-IPO, Wakefit could be valued around Rs 6,400 crore, underscoring strong market confidence in its growth trajectory.

Wakefit’s public subscription window will be open from December 8 to December 10, 2023. The company has also scheduled an anchor investor allocation on December 5, which typically involves large institutional investors subscribing to a significant portion of the issue before it opens to the general public.

The offering arrives at a time when investors are carefully monitoring global economic cues and sector-specific dynamics. In a market environment characterized by volatility and mixed sector performances, Wakefit’s IPO provides an opportunity to participate in a niche yet expanding market within India’s retail segment.

The fresh capital raised from the IPO is expected to fuel Wakefit’s expansion plans, enhance its product development capabilities, and extend its digital outreach to more consumers across India. By going public, Wakefit also aims to strengthen its brand visibility and strategic positioning as it competes with other players in the burgeoning D2C home and lifestyle segment.

In summary, Wakefit’s Rs 1,300-crore IPO opening on December 8 presents a compelling opportunity for investors seeking exposure to the home furnishings space through a well-established and fast-growing D2C firm. With a solid pre-IPO subscription, strong backing from private equity, and a clear plan to leverage the public market, Wakefit’s listing will be one of the notable stock market events toward the end of 2023.