Wakefit raises Rs 580 crore from HDFC MF, Axis MF, other anchor investors ahead of IPO launch

Bengaluru-based Wakefit Innovations has raised Rs 580 crore from anchor investors ahead of its initial public offering (IPO) that opens for subscription on December 8.

The allocation was made to 29,743,590 shares at Rs 195 each, according to a circular on the BSE website.

The anchor book drew interest from HDFC Life Insurance, Bajaj Life Insurance, Prudential Hong Kong, 360 One, Steadview Capital and Amundi Funds New Silk Road. Domestic mutual funds including HDFC MF, Axis MF, Mirae Asset MF, Nippon India MF, Tata MF, HSBC MF, Bandhan MF, Edelweiss MF and Mahindra Manulife MF also subscribed through multiple schemes.

Wakefit’s Rs 1,289 crore IPO will close on December 10. The price band has been set at Rs 185 to Rs 195 a share, valuing the Bengaluru company at nearly Rs 6,400 crore. The issue includes a fresh share sale of up to Rs 377.18 crore and an offer for sale of 4,67,54,405 shares worth about Rs 912 crore.

Promoters Ankit Garg and Chaitanya Ramalingegowda, along with shareholders Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest SA, SAI Global India Fund I LLP and Paramark KB Fund I, will sell part of their holdings. After the sale, promoter ownership will drop to about 37% from 43.70%.

The company plans to use Rs 31 crore from the fresh issue to set up 117 new company-owned stores and Rs 15.4 crore for new equipment and machinery. Another Rs 161.4 crore is earmarked for lease and licence payments for existing stores, while Rs 108.4 crore will be spent on marketing and brand visibility. The rest will go towards general corporate purposes.

Wakefit recently raised Rs 56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund in a pre-IPO round.

Founded in 2016, the company has grown into one of India’s fastest home and furnishings brands to cross Rs 1,000 crore in total income by FY24. It sells mattresses, furniture and furnishings through its own website, its network of COCO stores and online marketplaces.

The company operates five manufacturing units in Bengaluru, Hosur and Sonipat, equipped with automation systems such as robotic arms and roller belts to reduce waste and speed up production. Wakefit reported Rs 724 crore in operating revenue and Rs 35.5 crore in profit for the six months ended September 30, 2025.

The company’s shares is expected to list on December 15, 2025.