Wakefit makes subdued market debut; shares slip early before recovering

Omnichannel furniture retailer Wakefit’s IPO run came to an end on Monday morning, with the stock sliding over 5% after opening.

Shares of the mattress maker opened flat at Rs 195, which was the issue price, and later slipped to as low as Rs 177 on the NSE. It was trading at Rs 193 as of 11 AM. At the listing price, Wakefit was valued at about Rs 5,905 crore.

However, the slide hardly marred the upbeat atmosphere at the National Stock Exchange on Monday morning. The event at the exchange saw co-founders, investors and the Wakefit team lighting the ceremonial lamp and felicitating key partners.

Wakefit’s initial public offering (IPO) was subscribed 2.52 times on the final day of bidding, supported by steady demand from retail investors and qualified institutional buyers. By market close, the IPO received bids for around 9.16 crore shares against 3.63 crore shares on offer, according to stock exchange data. Wakefit is likely to be last IPO from the Indian startup ecosystem this year. 

Bengaluru-based Wakefit’s IPO saw its demand pick up only towards the end of the issue period, after muted interest on the first two days.

In comparison, other recent startup listings saw significantly stronger investor appetite. Meesho’s IPO was oversubscribed 79.2 times on the final day following a sharp late surge from institutional investors, with shares opening at a premium of 45% to the issue last week. 

Lenskart’s issue was subscribed 28 times, after being fully booked on the first day itself. The IPOs of Groww and Pine Labs were subscribed 17.6 times and 2.46 times, respectively, by the end of their issue periods.

Ahead of the IPO, Wakefit raised Rs 580 crore from anchor investors, including Ashoka Whiteoak, 360 One, and Steadview Capital along with strong participation from domestic mutual funds.