#WakefitIPO #PreIPO #D2C #HomeAndFurnishings #StartupFunding #SEBI #PeakXVPartners #ElevationCapital #Investcorp #VentureCapital #DSPFund #360ONE #CapitalMarkets
MF News Network
Chandigarh: Wakefit Innovations, the Bengaluru-based home and furnishings company, has successfully secured ₹56 crore in a pre-IPO placement round, valuing the company at ₹6,408 crore.
The placement is part of a larger planned pre-IPO round of ₹93.6 crore and is included within the fresh issue component of the company’s upcoming Initial Public Offering (IPO).
Key Investors and Pricing
The pre-IPO round was subscribed by two institutional investors who bought shares at ₹195 per share on November 14:
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DSP India Fund: Picked up 20,51,282 equity shares, representing a 0.66% pre-offer stake, worth ₹40 crore.
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360 ONE Equity Opportunities Fund: Bought 8,20,512 shares, representing a 0.26% stake, worth ₹16 crore.
The placement was executed following resolutions passed by the Board and shareholders on November 8.
IPO Plan Details
Wakefit, which claims to be India’s largest Direct-to-Consumer (D2C) home and furnishings company, received regulatory approval from SEBI in October, following the filing of its Draft Red Herring Prospectus (DRHP) in June this year.
The proposed IPO structure includes:
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Fresh Issue: To raise ₹468.22 crore. The pre-IPO placement amount is a part of this component.
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Offer for Sale (OFS): Promoters and investors will offload 5.8 crore shares. Selling shareholders in the OFS include major investors like Peak XV Partners, Redwood Trust, Verlinvest, SAI Global India Fund, and Investcorp.
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Estimated IPO Size: If the assumed upper price band of ₹195 per share is maintained, the IPO size could potentially be around ₹1,607 crore.
Utilisation of Fresh Issue Proceeds
The funds raised through the fresh issue will be utilized for several strategic growth initiatives by the company, promoted by Chaitanya Ramalingegowda and Ankit Garg:
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Retail Expansion: Setting up 117 new Company-Owned, Company-Operated (COCO) Regular Stores and one COCO Jumbo Store.
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Operational Expenses: Covering lease, sub-lease rent, and license fee payments for existing COCO Regular Stores.
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Capital Expenditure: Purchase of new equipment and machinery.
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Marketing & General Purposes: Marketing and advertisement expenses, with the remainder allocated for general corporate purposes.
Shareholding and Merchant Bankers
The promoters, Chaitanya Ramalingegowda and Ankit Garg, currently hold a 43.47% stake. The remaining 56.53% is held by public shareholders, led by:
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Peak XV Partners: 22.7% (Largest public shareholder)
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Verlinvest: 9.89%
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Investcorp: 9.39%
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Elevation Capital: 4.73%
The IPO will be managed by merchant bankers Axis Capital, IIFL Capital Services, and Nomura Financial Advisory and Securities (India).
#WakefitIPO #PreIPO #D2C #HomeAndFurnishings #StartupFunding #SEBI #PeakXVPartners #ElevationCapital #Investcorp #VentureCapital #DSPFund #360ONE #CapitalMarkets
