Wakefit’s cofounders and promoters Ankit Garg and Chaitanya Ramalingegowda own 33.03% and 9.98% of the company, respectively, with their stakes valued at Rs 2,012 crore and Rs 608 crore. Garg stands to collect around Rs 151 crore and Ramalingegowda about Rs 87 crore from the offer for sale (OFS) portion of the IPO.

Wakefit IPO values company at Rs 6,373 crore, to unlock major gains for founders, investors

Wakefit IPO: Key Highlights and Details

Wakefit, a leading manufacturer of mattresses and furniture, is set to launch its initial public offering (IPO) with a price band of Rs 185-195 per share.

Price Band and Valuation

The company has been valued at Rs 6,373 crore, and is expected to generate significant paper gains for its promoters and investors.

Promoters' Stakes and Expected Returns

Ankit Garg owns 33.03% of the company, valuing his stake at Rs 2,012 crore. He stands to collect around Rs 151 crore from the offer for sale (OFS) portion of the IPO.
Chaitanya Ramalingegowda owns 9.98% of the company, valuing his stake at Rs 608 crore. He is expected to collect around Rs 87 crore from the OFS portion.

Other Selling Shareholders

Peak XV Partners, the largest shareholder after Garg, has a 22.6% stake and is sitting on 9.5-11X returns on its investment. The venture capital firm has trimmed its OFS chunk to 2 crore shares.
Nikita Goel, who owns 1% of the company, is sitting on a paper gain of 4,875X.
Verlinvest, SIG Asia VC, and Paramark are set to clock 2X returns on their investments, amounting to Rs 199 crore, Rs 8 crore, and Rs 50 crore, respectively.

IPO Details

The IPO will open on December 8.
The company aims to raise Rs 377 crore by an issue of fresh shares.
The existing shareholders will offer 46.7 million shares for sale.

Company Background

Founded in 2016, Wakefit initially focussed on sleep-related products such as mattresses, pillows, and bed frames. Over time, it expanded the portfolio to include a wide range of home products.

Competitors

Wakefit competes with the likes of Sheela Foam, a listed firm that owns the Sleepwell and Kurl-On brands, as well as several new-age rivals such as Premji Invest-backed The Sleep Company, and Saama Capital-backed SleepyCat.

Interesting Facts

Investcorp had planned to sell around six million shares, but has now decided not to.
Elevation Capital, which owns 4.7% of the company, will also not participate in the OFS and retain its entire stake.