Wakefit IPO Day 3: Weak GMP, subdued subscription. Should you invest? – News Air Insight

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Wakefit Innovations’ Rs 1,288.89-crore IPO has entered its third and final day of bidding on Wednesday, but interest appears to be cooling. The grey-market premium (GMP) has been sliding consistently—currently hovering around just 1%, down from 2.56% earlier, and even lower than the roughly 5% premium seen before.

By the end of Day 2, the IPO had been subscribed only 39%, reflecting subdued investor participation. To date, the issue has drawn bids for 1.41 crore shares against the 3.63 crore shares available.

Wakefit IPO subscription status


By the end of Day 2, overall demand for the Wakefit IPO remains muted, with only 39% of the total shares subscribed.Retail Individual Investors (RIIs): Retail participation has been comparatively stronger, with this segment subscribing to 1.77 times the 66.09 lakh shares earmarked for them.

Non-Institutional Investors (NIIs): Interest from NIIs continues to lag, with just 25% of the 99.14 lakh shares taken up.

Qualified Institutional Buyers (QIBs): The QIB portion has yet to see any bids for the 1.98 crore shares allocated, despite this category typically driving substantial demand in IPOs.

Wakefit IPO GMP today:


The grey-market premium (GMP) for the IPO has been declining consistently. It is currently hovering around a 1% premium, down from 2.56% earlier, and well below the roughly 5% premium seen previously. If this downward trend persists, Wakefit’s listing price could be close to Rs 197.

Note: GMP is an unofficial indicator of how the stock might perform on listing day and does not guarantee the actual listing price.

Wakefit IPO details


Wakefit Innovations is set to raise Rs 1,288.89 crore through its IPO, which includes a fresh issue worth Rs 377.18 crore and an offer for sale of Rs 911.71 crore.

The issue will remain open for subscription until December 10, 2025. The allotment is likely to be finalized on December 11, 2025, and the shares are expected to list on the BSE and NSE on December 15, 2025.

The price band has been fixed at Rs 185–Rs 195 per share, with a minimum lot size of 76 shares. Retail investors must invest at least Rs 14,820 to participate.

About Wakefit


Wakefit represents a typical D2C success story—fast revenue growth driven by online sales, an expanding product range across mattresses, furniture, and home décor, and plans to increase offline presence through company-owned experience stores.

For FY25, the company reported Rs 1,305.43 crore in total income but continued to post losses, recording a Rs 35 crore net loss. Its EBITDA margin stood at 6.96%, with negative earnings per share.

Should you subscribe?


According to Swastika Investmart, several red flags persist. Although revenue is rising, profitability remains weak. Limited operating leverage, high marketing and distribution costs, and continued losses have led the brokerage to assign an “Avoid” rating. The company also shows negative return ratios, while the valuation appears expensive given its current financial performance.

Investors should also factor in key structural risks. Wakefit depends heavily on online channels and third-party manufacturing, exposing it to platform reliance and supply-chain issues. Raw material cost volatility and the working-capital needs of the furniture business could also pressure margins.

On the upside, Wakefit enjoys strong brand visibility in the mattress segment, a wide product portfolio, and data-led product development that supports repeat business.

While the company has notable growth drivers, the path to sustainable profitability will require better manufacturing efficiency, tighter working-capital control, and improved operating leverage. Investors should weigh these factors carefully before subscribing.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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