Wakefit Innovations Shares Listing: The shares of Wakefit Innovation, a furniture and mattress maker, were listed today on December 15. Shares of Wakefit Innovations have been listed in the stock market today and this debut was not very spectacular. The issue price of the share was Rs 195. It opened at exactly the same price on NSE, but is listed slightly lower on BSE at Rs 194.1.
The total IPO of Wakefit Innovations was Rs 1289 crore in which fresh shares were worth Rs 377.18 crore and the offer for sale from old shareholders was Rs 911.71 crore. This IPO closed on December 10 and a total of 2.52 times subscription was received. Retail investors subscribed 3.17 times and qualified institutional buyers subscribed 3.04 times.
Where will the company use the funds raised from IPO?
The response from non-institutional investors was slightly less, only 1.05 times were subscribed. Many investors expected that the brand is so popular because its mattress furniture advertisements are running everywhere, that there would be more response, but the mood of the market did not seem to be like this. The listing also happened around the issue price and investors did not get much profit.
The company will use the money coming from this issue to expand its stores and to buy machinery and equipment and make lease payments for existing stores. Apart from this, Wakefit can spend on marketing brand building. More than 100 new offline stores will be opened because now the company is emphasizing on omnichannel retail. That means the company will focus on strength from both online and offline sides.
Even before the IPO, the company had raised Rs 580 crore from anchor investors. In which many big domestic and global funds were included. This gave good credibility to the IPO. The fundamentals of the company are strong, the business model is good and there is potential for growth. Wakefit is a brand that has become a household name in a few years. Youth especially like it because the designs are modern, the prices are affordable and the company focuses on quality.
In which direction did GMP point?
According to Investor Gain, on December 14, the GMP of this company was showing a decline of Rs 4 at the listing price of Rs 199. At the same time, on December 13, it was showing at Rs 202 with an increase of Rs 7.
Expert opinion
According to Mint report, market expert Arun Kejriwal, founder of Kejriwal Research and Investment Services, has said that the fundamentals of the company are very strong. The valuation was also attractive but still the response from the stock market has been a bit lukewarm. Right now the mood of the market is a bit weak. People are investing cautiously. Many IPOs come where the enthusiasm is less in the beginning, but later if the company performs well then the share increases. It seems to be the same case with Wakefit.
Kejriwal further said that if the market opens weak on Monday, Wakefit’s shares may be listed at a discount of around Rs 20. Meaning it may open below the issue price but if the market opens positively then a premium of Rs 20 may also be received i.e. listing may happen above the issue price. This estimate was made after looking at the gray market and current sentiment.
