Mumbai, Dec 15 Shares of D2C home and furnishings brand Wakefit Innovations made a muted debut on the stock market on Monday, after its Rs 1,289-crore initial public offering (IPO) received moderate investor interest.
The stock was listed at Rs 195 per share, which was the same as its issue price, on the National Stock Exchange (NSE).
On the Bombay Stock Exchange (BSE), it opened slightly lower at Rs 194.10. After listing, the stock came under selling pressure and slipped by as much as 9 per cent during early trade.
Wakefit’s mainboard IPO was subscribed 2.52 times overall during the three-day bidding period from December 8 to December 10.
The qualified institutional buyer (QIB) segment was subscribed 3.04 times, while the non-institutional investor category was fully subscribed. Retail investors showed strong interest, with their portion booked 3.17 times.
Ahead of the listing, the stock was trading at a grey market premium of around Rs 5 per share -- indicating a possible listing gain of about 3 per cent.
However, the actual listing failed to match expectations, highlighting that grey market trends are only indicative and can change quickly. Market experts said investors could consider booking profits in case of any sharp gains.
Before the IPO opened, Wakefit raised Rs 580 crore from anchor investors. The company saw participation from several well-known institutional investors, including Ashoka Whiteoak, HDFC Life, Prudential Hong Kong, HDFC Mutual Fund and Axis Mutual Fund.
In November, the company also raised Rs 56 crore in a pre-IPO round from DSP India Fund and 360 ONE Equity Opportunity Fund.
The IPO included a fresh issue of shares worth Rs 377.18 crore and an offer-for-sale (OFS) of 4.67 crore shares valued at around Rs 912 crore, taking the total issue size to Rs 1,289 crore.
Wakefit plans to use the funds raised through the fresh issue to expand its business. The company will invest in opening 117 new company-owned and company-operated stores, purchase new equipment and machinery, meet lease-related expenses for existing stores and spend on marketing, advertising and general corporate purposes.
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