In a post-listing commentary, Shivani Nyati, Head of Wealth at Swastika Investmart, noted that Wakefit Innovations made a “quiet stock market debut, listing at par at Rs 195 on the NSE, in line with its IPO price, while opening marginally lower at Rs 194.10 on the BSE.”
She added that the “muted listing reflected moderate investor demand,” citing the 2.52x overall subscription as a reflection of the same.
Wakefit, which operates as a direct-to-consumer (D2C) home and furnishings brand, has a growing presence across mattresses, furniture, and home solutions. The company is pushing into omnichannel retail, with plans to open over 100 new offline stores.
However, Nyati pointed to certain market challenges. “Limited listing gains were expected due to competitive intensity in the D2C space, margin pressures, and the need to demonstrate sustained profitability at scale,” she said.
Looking ahead, investors may need to exercise caution. “Given the lack of listing gains and near-term catalysts, investors may consider exiting the stock, especially if prices fail to move above the issue price,” Nyati advised. She added that “risk-averse investors are advised to book capital and avoid holding,” while traders “may keep a strict stop-loss near Rs 180 if holding briefly.”
The IPO, comprising a fresh issue of Rs 377.18 crore and an offer for sale of Rs 911.71 crore by existing shareholders, had closed on December 10 with an overall subscription of 2.52 times. While retail investors bid 3.17 times and qualified institutional buyers (QIBs) subscribed 3.04 times, the response from non-institutional investors (NIIs) was relatively muted at 1.05 times.Also read: Kaynes Technology shares zoom 15% in 3 days after sharp selloff, 24% upside may still be on the cards
Proceeds from the IPO’s fresh issue are earmarked for store expansion, lease payments for existing outlets, purchase of equipment, and brand-building initiatives.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times