Wakefit secures Rs 56 crore pre-IPO, valued at over Rs 6,400 crore

Wakefit IPO News

Bengaluru-based home and furnishings company Wakefit Innovations, which is backed by Peak XV Partner, Elevation Capital, Investcorp, and Verlinvest, has raised Rs 56 crore in a pre-IPO round from couple of investors, at a valuation of Rs 6,408 crore.

It is a part of pre-IPO placement worth Rs 93.6 crore planned by the company at the time of filing of draft document with the SEBI. And the said pre-round is a part of fresh issue component.

As per IPO plans, Wakefit that claims the largest D2C home and furnishings company in India proposed to raise Rs 468.22 crore via fresh issue, while promoters and investors will be offloading 5.8 crore shares via offer-for-sale. Peak XV Partners, Redwood Trust, Verlinvest, SAI Global India Fund, and Investcorp will be among selling shareholders in the offer-for-sale.

Wakefit filed draft document with the SEBI to raise funds via IPO in June this year, which later approved by the capital markets regulator in October.

If the expected upper price band assumes as Rs 195 per share, the IPO size could be around Rs 1,607 crore.

"...has undertaken a private placement of 28,71,794 equity shares at an issue price of Rs 195 per share for an amount of Rs 56 crore," Wakefit in its notice to investors on November 15 said.

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DSP India Fund has picked 20,51,282 equity shares (equivalent to 0.66 percent of pre-offer equity) worth Rs 40 crore, and 360 ONE Equity Opportunities Fund bought 8,20,512 shares (0.26 percent stake) worth Rs 16 crore in Wakefit at Rs 195 per share on November 14.

The said pre-IPO placement has been undertaken as per the resolutions passed by Board and shareholders on November 8.

Chaitanya Ramalingegowda, and Ankit Garg-promoted Wakefit will utilise fresh issue proceeds for setting up of 117 new COCO – Regular Stores and one COCO – Jumbo Store, and for lease, sub-lease rent and license fee payments for existing COCO – Regular Stores.

Further, the funds will be used for purchase of new equipment and machinery, marketing and advertisement expenses, and the remainder for general corporate purposes.

Promoters Chaitanya Ramalingegowda, and Ankit Garg held 43.47 percent stake in Wakefit, while the remaining 56.53 percent shares are owned by public shareholders including Peak XV Partners (being the largest public shareholder with 22.7 percent stake), Verlinvest (9.89 percent), Investcorp (9.39 percent), and Elevation Capital (4.73 percent).

The merchant bankers that will handle the Wakefit IPO are Axis Capital, IIFL Capital Services, and Nomura Financial Advisory and Securities (India).